A crime ring allegedly profited handsomely by selling iPhone components that were supposed to be destroyed. Foxconn said on Wednesday that an investigation has been launched into an alleged fraud.
A Taiwanese businessman has purportedly worked with a group of management staff at Foxconn’s Zhengzhou facility to obtain and assemble flawed iPhone parts, which are then sold under the guise of iPhone products manufactured at the Chinese production base.
The defective components would have been destroyed according to normal procedures. The businessman and his crime ring have made a fortune out of the illegal dealings, allegedly raking in NT$1.3 billion (US$43 million) over the past three years
MacDailyNews Take: If true, it sounds like Foxconn’s Zhengzhou plant’s management staff has a few bad apples stealing bad Apples.