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

CarPlay Hero

Apple Releases Wireless CarPlay Fix

Wednesday April 16, 2025 11:28 am PDT by
If you have been experiencing issues with wireless CarPlay in your vehicle lately, it was likely due to a software bug that has now been fixed. Apple released iOS 18.4.1 today, and the update's release notes say it "addresses a rare issue that prevents wireless CarPlay connection in certain vehicles." If wireless CarPlay was acting up for you, updating your iPhone to iOS 18.4.1 should...
Beyond iPhone 13 Better Triad

Apple's 20th Anniversary iPhone May Finally Go All Screen

Tuesday April 15, 2025 6:31 am PDT by
Apple is preparing a "bold" new iPhone Pro model for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. As part of what's being described as a "major shake-up," Apple is said to be developing a design that makes more extensive use of glass – and this could point directly to the display itself. Here's the case for Apple releasing a truly all-screen iPhone with no...
iOS 19 Roundup Feature

iOS 19 Will Add These New Features to Your iPhone

Tuesday April 15, 2025 7:37 am PDT by
The first iOS 19 beta is less than two months away, and there are already a handful of new features that are expected with the update. Apple should release the first iOS 19 beta to developers immediately following the WWDC 2025 keynote, which is scheduled for Monday, June 9. Following beta testing, the update should be released to the general public in September. Below, we recap the key...
maxresdefault

iPhone 17 Pro Launching Later This Year With These 12 New Features

Sunday April 13, 2025 7:52 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Subscribe to the MacRumors YouTube channel for more videos. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and ...
iphone 16 pro models 1

17 Reasons to Wait for the iPhone 17

Thursday April 17, 2025 4:12 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we often get rumored features months ahead of launch. The iPhone 17 series is no different, and we already have a good idea of what to expect from Apple's 2025 smartphone lineup. If you skipped the iPhone...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Friday April 18, 2025 5:16 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iOS 18

Apple Releases iOS 18.4.1 With Bug Fixes

Wednesday April 16, 2025 10:11 am PDT by
Apple today released iOS 18.4.1 and iPadOS 18.4.1, minor updates to the iOS 18 and iPadOS 18 operating systems that came out last September. iOS 18.4.1 and iPadOS 18.4.1 come two weeks after the launch of iOS 18.4 and iPadOS 18.4. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. There have been complaints about ...
tvOS 18 Thumb 1

Apple Releases tvOS 18.4.1

Wednesday April 16, 2025 10:04 am PDT by
Apple today released tvOS 18.4.1, a minor update to the tvOS 18 operating system that came out last September. tvOS 18.4.1 comes two weeks after Apple released tvOS 18.4, and it is available for the Apple TV 4K and Apple TV HD models. tvOS 18.4.1 can be downloaded using the Settings app on the ‌Apple TV‌. Open up Settings and go to System > Software Update to get the new software....
iPhone Security Feature 25

Five iPhone Security Features You Should Be Using

Wednesday April 16, 2025 4:15 pm PDT by
Apple has quite a few security features that it's added to iPhones, iPads, and Macs over the years. Now more than ever, it's important to make sure you're taking advantage of the built-in security tools that are available to keep yourself and your data safe, so we've rounded up a list of the most important options. If you don't already have these enabled, you might want to consider turning...

Top Rated Comments

Plutonius Avatar
75 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
75 months ago
Here's to the crazy ones, the misfits, the rebels, the troublemakers
Score: 26 Votes (Like | Disagree)
Baymowe335 Avatar
75 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
75 months ago
Interesting read! Increase their pay and this wouldn't happen.
Score: 7 Votes (Like | Disagree)
AngerDanger Avatar
75 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
75 months ago
Is Ming Chi Kuo behind this? :)
Score: 5 Votes (Like | Disagree)