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$43M Apple scam: People at Foxconn sold iPhones made from rejected parts

Foxconn employees illegally sold $43M worth iPhones made from rejected parts. Read on to know more about the major scam.

India TV Tech Desk Written by: India TV Tech Desk
New Delhi Updated on: December 19, 2019 14:38 IST
Apple scam
Image Source : PIXABAY

$43M worth iPhone sold made from rejected parts

As part of a major Apple scam, people working at Taiwan-based electronics manufacturer Foxconn have sold iPhones made from rejected iPhone parts. As a result, the fraudulent activity resulted in a net worth of NT$1.3 billion (around US$43 million) over a period of three years.

Major Apple scam

According to a report by Taiwan News, a Taiwanese businessman worked with a couple of Foxconn employees to get hold of defective and rejected iPhone parts at Foxconn’s Zhengzhou facility. 

Following this, the flawed parts were assembled and sold as iPhones (disguised as genuine iPhones). The iPhones were manufactured at a Chinese production base.

It is suggested that the rejected iPhone parts were meant to be destroyed as per standard procedures. However, that never happened and instead led to a $43 million scam.

Apple was informed of the illegal selling scam and the Cupertino tech major has started investigating the matter. The formal investigation is being run by Apple’s Business Assurance & Audit (BA&A) team 

Also Read: Google, Apple, Amazon join hands for new smart home standard

When contacted, Foxconn refused to provide any comment on the same.

Previous Apple fraud

A couple of months ago, two Chinese students conned Apple by conducting a $1M worthiPhone replacement program by smuggling fake iPhones from the US to China. The two students are currently facing criminal charges in the federal court.

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