Ex-manager at Foxconn, known supplier for Apple products like the iPhone, has been formally indicted of stealing and reselling 5,700 iPhones. The amount of stolen products amount to $1.56 Million and the former manager, referred to by his surname Tsai, will be facing a maximum of ten years in prison.
Tsai previously worked in the testing department of Foxconn at a facility located in Shenzhen, China, reported CNET. He was reportedly tasked with scrapping the devices after they had gone through the testing phase but instead smuggled the devices out of the factory with the aid of several employees.
It is further stated that he specifically managed to steal iPhone 5 and iPhone 5s models from 2013 to 2014. The illegal activities were not discovered until Foxconn performed an internal audit and he was then reported to the authorities.
Tsai managed to return to Taiwan but the authorities had been alerted of his actions. According to Apple Insider the authorities in Taiwan did question Tsai but he was released after posting bail.
Foxconn itself has reportedly been under fire from the public due to alleged unfair treatment towards employees and the conditions of its factories. The company most recently garnered negative feedback after its buildings were fitted with suicide nets.
Apple has also been reportedly pressured to take some distance from Foxconn. Although Apple has no direct responsibility over the supplier's actions the company's reputation may still be affected. It is stated that President-elect Donald Trump had urged Apple to move their production to the United States and Apple is allegedly considering this option.
Apple is also suffering from multiple leaks originating from its suppliers. The report points out several schematics have been leaked out to the media and this can give Apple's suppliers a head start to combat their competitor.
Several of these leaks include a possible flexible circuit board and an OLED display for the iPhone 8, which is not scheduled to release until Fall 2017. It is important to note that Apple has yet to address if these leaks are accurate and if it will distance itself from Foxconn following Tsai's indictment.