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

Apple Creator Studio

Apple Introduces New 'Creator Studio' Bundle of Apps for $129 Per Year

Tuesday January 13, 2026 6:11 am PST by
Apple today introduced a new Apple Creator Studio bundle that offers access to six creative apps, as well as exclusive AI features and content, as part of a single subscription. In the U.S., pricing is set at $12.99 per month or $129 per year. Here are the six apps included with an Apple Creator Studio subscription:Final Cut Pro on the Mac and iPad Logic Pro on the Mac and iPad Pixelmator...
Low Cost MacBook Feature A18 Pro

Apple Is Expected to Launch These Four MacBooks in 2026

Friday January 9, 2026 8:17 am PST by
2026 could be a bumper year for Apple's Mac lineup, with the company expected to announce as many as four separate MacBook launches. Rumors suggest Apple will court both ends of the consumer spectrum, with more affordable options for students and feature-rich premium lines for users that seek the highest specifications from a laptop. Subscribe to the MacRumors YouTube channel for more videos. ...
iOS 18 Siri Personal Context

Apple Confirms Google Gemini Will Power Next-Generation Siri This Year

Monday January 12, 2026 7:38 am PST by
In a statement shared with CNBC today, Apple confirmed that Google Gemini will power the next-generation version of Siri that is slated to launch later this year. "After careful evaluation, we determined that Google's technology provides the most capable foundation for Apple Foundation Models and we're excited about the innovative new experiences it will unlock for our users," the statement...
iPhone Top Left Hole Punch Face ID Feature Purple

10 Reasons to Wait for This Year's iPhone 18 Pro

Thursday January 8, 2026 2:56 am PST 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 at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
iOS 26

Here's What's New in iOS 26.3 So Far

Monday January 12, 2026 1:15 pm PST by
Apple today seeded the second beta of iOS 26.3, nearly a month after the first beta. So far, the update includes a couple of new features for iPhones. iOS 15.3 through iOS 18.3 were all released in late January over the years, so it is thereby likely that iOS 26.3 will be released towards the end of this month as well. The update is compatible with the iPhone 11 series and newer. Below,...
iOS 18 Siri Personal Context

Elon Musk Reacts to Apple and Google Teaming on Gemini-Powered Siri

Monday January 12, 2026 11:38 am PST by
Elon Musk today expressed concern about Apple and Google partnering on a more personalized version of Siri powered by Google's generative AI platform Gemini. "This seems like an unreasonable concentration of power for Google, given that [they] also have Android and Chrome," wrote Musk, in a post on X. Musk serves as CEO of xAI, the company behind Gemini competitor Grok. It is unlikely...
fcp pcp iwork creator studio

These Apple Apps Will No Longer Receive All New Features Without a Subscription

Tuesday January 13, 2026 10:50 am PST by
If you are not interested in subscribing to the new Apple Creator Studio bundle introduced today, you will officially start to miss out on some new features. Apple said some "exciting new intelligent features and premium content" in Final Cut Pro, Pixelmator Pro, Keynote, Numbers, Pages, and Freeform will only be accessible with a Creator Studio subscription. In the U.S., a subscription...
Apple Intelligence iPhone 16

Google Gemini Partnership With Apple Will Go Beyond Siri Revamp

Monday January 12, 2026 8:48 am PST by
Apple and Google today announced that Google Gemini will help power not only a more personalized version of Siri, but a range of future Apple Intelligence features. "Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google's Gemini models and cloud technology," the companies said, in a statement. "These...
iOS 26

iOS 26.2.1 Update Coming Soon for iPhones

Monday January 12, 2026 8:19 am PST by
iOS 26.3 will likely be released to the public later this month, but it appears that Apple is preparing to push out another software update in the interim. Apple's software engineers have started testing iOS 26.2.1, according to the MacRumors visitor logs, which have been a reliable indicator of upcoming iOS versions. The update will likely be released at some point this week or next week. ...

Top Rated Comments

Plutonius Avatar
85 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
85 months ago
Here's to the crazy ones, the misfits, the rebels, the troublemakers
Score: 26 Votes (Like | Disagree)
Baymowe335 Avatar
85 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
85 months ago
Interesting read! Increase their pay and this wouldn't happen.
Score: 7 Votes (Like | Disagree)
AngerDanger Avatar
85 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
85 months ago
Is Ming Chi Kuo behind this? :)
Score: 5 Votes (Like | Disagree)