Former Foxconn Manager Faces 10-Year Prison Sentence for Profiting $1.5M on Stolen iPhones

Discussion in 'iOS Blog Discussion' started by MacRumors, Dec 2, 2016.

  1. MacRumors macrumors bot


    Apr 12, 2001

    A former senior Foxconn manager was recently indicted for stealing 5,700 iPhones in China to pocket around $1.56 million. Factoring in his accomplices, the entire scheme made $2.2 million between 2013 and 2014 by stealing only the iPhones which were supposed to be scrapped on the manufacturing line, and selling them to various shops in China, according to a report by Asia One (via Business Insider).

    The ringleader, identified only by his family name Tsai, was reported as having instructed eight other employees to smuggle out thousands of iPhone 5 and iPhone 5s devices in order to sell them illegally. The operation was caught during an internal audit of the Shenzhen-based Foxconn factory, and Tsai was arrested this year for running the operation, and then released on bail.


    Tsai has now been charged with breach of trust and faces a maximum of ten years as a jail sentence if found guilty. It wasn't made clear when the final verdict on the matter will be reached.
    In August, it was reported that Foxconn's profits had declined 31 percent in the second quarter of 2016, affected by the iPhone sales slump Apple faced at the same time this year. For the entire quarter, Foxconn made 17.7 billion New Taiwan dollars, down from NT$25.7 billion a year prior.

    Article Link: Former Foxconn Manager Faces 10-Year Prison Sentence for Profiting $1.5M on Stolen iPhones
  2. mejsric macrumors 6502a


    Mar 28, 2013
    5,700 iPhones! Thats a big pocket he got there.
  3. miknos Suspended


    Mar 14, 2008
    If Apple were a government company, that thief would be dead! Imagine $1.5mil in China! I would move to Thailand to get 5 wives 30years my junior (maybe a ladyboy since I don't like to discriminate) and eat shrimp and heavy cocktails everyday! Don't know the laws but also the best painkillers money can buy!
  4. tito2020 macrumors 6502a

    Oct 16, 2011
    Cant believe the scrap was worth that much as the story said it.
  5. macrumors newbie

    Dec 2, 2016
    Stealing might be dangerous ... in some countries ;):eek:
  6. pat500000 Suspended


    Jun 3, 2015
    And should Tim continue manufacturing products outside of USA? But then again, it could happen in usa.
  7. ck2875 macrumors 6502a


    Mar 25, 2009
    iPhone 5/5s fit in pockets much easier than the iPhone 6, 6s, 7, and their related "plus" sized versions. The shift to bigger screens is how the auditors figured out the 8 employees smuggling phones for the manager weren't just happy to see them.
  8. gnasher729 macrumors P6


    Nov 25, 2005
    That was iPhone 5 in 2013 or 2014; they were the top end phone and more expensive back then. And quite possibly the buyers didn't know these phones were to be scrapped. There is no honour among thieves.
  9. I7guy macrumors Core


    Nov 30, 2013
    Gotta be in it to win it
    Exactly we know Bernie madoff was above board.
  10. AxoNeuron macrumors 65816


    Apr 22, 2012
    The Left Coast
    How on earth do you steal 5700 iPhones and only net 1.5 mil? He should be arrested for stupidity, not greed.
  11. Nick11Mac macrumors 6502


    Jan 20, 2011
    Definitely stupid. He'll have plenty of time for regret if he gets 10 years.
  12. saudade, Dec 2, 2016
    Last edited: Dec 2, 2016

    saudade macrumors 6502


    Sep 8, 2015
    I wont care to spend 10 years on prison x 1.5 m dollars dud and I know ppl with bigger sentences 4 less money. Just a few years eating and sleeping free and bum u are free and rich 4 life with the females n everything big cars n gold U know what i mean??
    --- Post Merged, Dec 2, 2016 ---

    Yeah!! Bling bling da king
    --- Post Merged, Dec 2, 2016 ---
    Cause dude u need to pay some bros to sale da phones on da streets n they will get other things in exchange not only cash u know what i mean right? Then at the end of the day u spend money with the females and friends and the little white friend and drinks and just got a few bucks. 1.5 m still a lot of money i can live 4 ever with that yay except i start buying..
  13. Michaelgtrusa macrumors 604

    Oct 13, 2008
    One person out off many others that never get charged.
  14. DoctorKrabs macrumors 6502a


    Jul 12, 2013
    Well they were considered defective, and he received them for free. He made pure profit and selling them cheaper probably got him quicker money.

    Not that he's smart, he'll be paying in prison time.
  15. rogue0 macrumors newbie


    Nov 23, 2016
    "I'd get it one piece at a time, and it wouldn't cost me a dime..."
  16. krause734 macrumors 6502a


    Jul 30, 2010
    Confucius says slave labor not so cheap after all.
  17. DonutHands macrumors regular


    Dec 20, 2011
    Los Angeles
    $2.2 mil total profit. 5700 phones averaging to about $400 street price sounds about right to me. Have to consider these may have varied in condition and capacity. Probably not packaged for retail either.
  18. gnasher729 macrumors P6


    Nov 25, 2005
    $263 per phone for a dodgy phone is quite a lot of money.
    --- Post Merged, Dec 2, 2016 ---
    What slave labour? He goes to jail, I don't think he will have to do any slave labour.
  19. avtella, Dec 2, 2016
    Last edited: Dec 2, 2016

    avtella macrumors regular

    Nov 11, 2016
    I remember when I ordered my LG G2 from Sprint and a day later it was said that a truck full of them was stolen (US), guy abandoned the truck with the phones still there and ran lol. So yeah it can happen here too.
    --- Post Merged, Dec 2, 2016 ---
    I think NBC or another channel did an investigation on counterfeit products in China a while back. The police would go to the homes of the accused have a nice chit chat drink tea "arrest" them and then release them fairly quickly. When asked about the laxity one of the officers pretty much said companies should just deal with it. It's probably worse legally in this case where the guy was outright stealing but I highly doubt it's to the extent some imagine (i.e. hard labor).
  20. miniyou64 macrumors 6502a


    Jul 8, 2008
    So archaic for humans to want to lock other humans in cages.
  21. pat500000 Suspended


    Jun 3, 2015
    OH Sorry that it had to happen to you. It's really about integrity.
  22. jeremyhu macrumors member

    Aug 16, 2010
    He allegedly netted $US 1.5 mil. The scheme allegedly netted $US 2.2 mil. Using the reported amount of 5700 phones, that's about $385 per phone. Considering that these are not legitimate phones (pre-production test units, no warranty, etc), you'd expect to pay somewhere around 50% of the price of a legitimate phone. At $385 per phone, that seems rather spot on.
  23. avtella macrumors regular

    Nov 11, 2016
  24. szw-mapple fan macrumors 68000

    szw-mapple fan

    Jul 28, 2012
    It's not too far off. That's a profit of around $250 per phone and he probably sold it at a discount.
  25. Mcmeowmers macrumors 6502

    Jun 1, 2015
    Holy lol'd hard

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27 December 2, 2016