Taiwan’s Foxconn will investigate fraud where its employees sold iPhone with defective parts

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You must be aware of the fact that Taiwan houses the biggest smartphone manufacturing plant as well as manufacturer in the world by the name of Foxconn. It should also be noted that Foxconn counts Apple as one of its biggest clients. Apart from Apple, there are major smartphone manufacturers that also make their phones at Foxconn. However, the iPhones from Apple are made every year at Foxconn’s Chinese factory. If you are aware of the way any smartphone is manufactured, you would be aware that there are bound to be some defects in the process. This can be either via machinery defect or human error.

Now, these defective parts can’t be used in a smartphone since they can cause damage to the entire product and might cost a lot more in repair and warranty. So what Apple and Foxconn does is they discard those damaged parts and might sell them later as refurbished products. However, a new fraud was just found out by Foxconn at its factory where the iPhones are made. The company revealed that they have been made aware of some of its employees indulging in a scam. The scam involves making iPhones from defective parts and then selling them as brand new to make profits.

Since the defective parts are meant to be thrown away, Foxconn does not keep track of them as well as it did not cost the employees a penny. Therefore, the entire profit that they made from selling those iPhones at a lower price was into their pockets. Now, it is also said that the scam was in excess of multi-million dollars which means it was going on from quite many years. Taiwan’s Foxconn now says that it will investigate the matter. However, the company did not reveal which products or clients were affected by this scam and we believe that those iPhones would have been sold mostly in Chinese markets.

Source Taiwan News

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