Foxconn manager indicted for iPhone theft
Print Edition
A former senior manager at Taiwanese technology giant Foxconn has been indicted for stealing and selling 5,700 iPhones on China’s mainland and pocketing about US$1.56 million, Taiwanese prosecutors said yesterday.
Foxconn is the world’s largest contract electronics maker and assembles products for international brands such as Apple and Sony. It employs about 1 million workers at its factories across China.
The Taiwanese manager, surnamed Tsai, worked in the testing department and instructed eight employees at Foxconn’s factory in Shenzhen to smuggle out thousands of iPhone 5 and iPhone 5s models, prosecutors said.
Tsai and his accomplices sold the testing phones, which were supposed to be scrapped, to stores in Shenzhen and made almost US$1.56 million from 2013 to 2014, said the New Taipei district prosecutor’s office.
Foxconn reported the case to Taiwanese authorities following an internal audit and Tsai was questioned after he returned to the island earlier this year and was released on bail.
Tsai was charged with breach of trust and faces a maximum 10-year jail term according to prosecutors.
Foxconn has been hit with a number of scandals in recent years from employee misconduct to labor disputes.
In 2014, five former Foxconn employees were charged with breach of trust in Taiwan for allegedly soliciting NT$160 million (US$5 million) in kickbacks from suppliers in exchange for clearing quality checks and buying their equipment.
They were sentenced to up to 10 years and six months in prison by a district court in Taipei last month.
The company has also come under the spotlight over labor unrest, a spate of employee suicides and the use of underage interns at its mainland plants in recent years.
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