Apple Once Caught Factory Workers 'Digging a Small Tunnel in a Corner' in Attempt to Smuggle iPhone Parts

The Information's Wayne Ma has published an interesting story about the measures Apple takes to prevent leaks of unreleased products like iPhones from emerging out of factories within its Asian supply chain.

shawshank redemption tunnel
After photos of the colorful iPhone 5c leaked in 2013, the report claims Apple created a "New Product Security" team to monitor security at its most sensitive suppliers in China. At one point, the team reportedly topped more than 30 people, but Apple is said to have been moving some of the work to contractors as of late.

Apple recruited former U.S. military and intelligence operatives fluent in Chinese to be security managers on the team, and hired third-party auditors tasked with visiting factories on a weekly basis, the report adds.

The security team is said to have uncovered workers going to extreme lengths to smuggle valuable components out of factories over the years, with some attempting to hide parts in crawl spaces, tissue boxes, shoes, belt buckles, bras, used mop water, under discarded metal shavings, and beyond.

Apple once even caught factory workers "digging a small tunnel in a corner of a room behind a large piece of machinery," hoping to use it to funnel stolen components to the outside, according to the report. "People were chipping away little by little at the wall 'Shawshank Redemption' style," one person said.

Over the years, Apple has tightened its security protocols even further to prevent leaks.

Examples from the report: trash bags must be clear and screened for metal before they are removed from the premises, storage containers must be sealed with tamper-evident stickers, parts must have unique serial numbers that can be traced back to specific factory lines, and inventory must be counted daily.

Suppliers who suffer leaks may face multi-million-dollar fines, according to the report, although Apple's primary manufacturer Foxconn is said to be excluded from this policy due to the size of its relationship with Apple.

The full article at The Information is a fascinating read, with several more details about Apple's efforts to curb leaks. A subscription is required.

Popular Stories

iPhone 17 Pro Dark Blue and Orange

iPhone 17 Release Date, Pre-Orders, and What to Expect

Thursday August 28, 2025 4:08 am PDT by
An iPhone 17 announcement is a dead cert for September 2025 – Apple has already sent out invites for an "Awe dropping" event on Tuesday, September 9 at the Apple Park campus in Cupertino, California. The timing follows Apple's trend of introducing new iPhone models annually in the fall. At the event, Apple is expected to unveil its new-generation iPhone 17, an all-new ultra-thin iPhone 17...
xiaomi apple ad india

Apple and Samsung Push Back Against Xiaomi's Bold India Ads

Friday August 29, 2025 4:54 am PDT by
Apple and Samsung have reportedly issued cease-and-desist notices to Xiaomi in India for an ad campaign that directly compares the rivals' devices to Xiaomi's products. The two companies have threatened the Chinese vendor with legal action, calling the ads "disparaging." Ads have appeared in local print media and on social media that take pot shots at the competitors' premium offerings. One...
iPhone 17 Pro Iridescent Feature 2

iPhone 17 Pro Clear Case Leak Reveals Three Key Changes

Sunday August 31, 2025 1:26 pm PDT by
Apple is expected to unveil the iPhone 17 series on Tuesday, September 9, and last-minute rumors about the devices continue to surface. The latest info comes from a leaker known as Majin Bu, who has shared alleged images of Apple's Clear Case for the iPhone 17 Pro and Pro Max, or at least replicas. Image Credit: @MajinBuOfficial The images show three alleged changes compared to Apple's iP...
maxresdefault

The MacRumors Show: iPhone 17's 'Awe Dropping' Accessories

Friday August 29, 2025 8:12 am PDT by
Following the announcement of Apple's upcoming "Awe dropping" event, on this week's episode of The MacRumors Show we talk through all of the new accessories rumored to debut alongside the iPhone 17 lineup. Subscribe to The MacRumors Show YouTube channel for more videos We take a closer look at Apple's invite for "Awe dropping;" the design could hint at the iPhone 17's new thermal system with ...

Top Rated Comments

Plutonius Avatar
80 months ago
Interesting read! Increase their pay and this wouldn't happen.
I doubt it.

I'm sure that industrial espionage pays much more than increased wages :(.
Score: 32 Votes (Like | Disagree)
alireza76 Avatar
80 months ago
Here's to the crazy ones, the misfits, the rebels, the troublemakers
Score: 26 Votes (Like | Disagree)
Baymowe335 Avatar
80 months ago
Interesting read! Increase their pay and this wouldn't happen.
Wrong. Pay doesn’t stop corruption.
Score: 7 Votes (Like | Disagree)
DrJohnnyN Avatar
80 months ago
Interesting read! Increase their pay and this wouldn't happen.
Score: 7 Votes (Like | Disagree)
AngerDanger Avatar
80 months ago
"People were chipping away little by little at the wall 'Shawshank Redemption' style," one person said.
Man, when I read that (oh, and saw the article image), I couldn't help but think of this:

Score: 6 Votes (Like | Disagree)
rebateProcessing Avatar
80 months ago
Is Ming Chi Kuo behind this? :)
Score: 5 Votes (Like | Disagree)