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June 16, 2011

Foxconn Worker and Others Sentenced to Prison for Apple iPad 2 Leaks

By Tracey E. Schelmetic, TMCnet Contributor



Apple (News - Alert) REALLY doesn’t like leaks. Neither, it turns out, does the Chinese government.

Three individuals tied to the Foxconn manufacturing facility in China that manufactures iPad 2 tablets are in hot water for leaking information about the second generation iPad six months in advance of its official debut. The three employees will pay fines of up to $23,000 and spend up to a year and a half in a Chinese prison. The employees, Xiao Chengsong, Lin Kecheng and Hou Pengna, were found guilty yesterday of leaking Apple trade secrets, and sentenced to 18 months, 14 months and 12 months, respectively, in prison. At the time of the leak Lin Kecheng was the only one actually employed by Foxconn, reported the Wall Street Journal.

In the leak in question, the three individuals were accused of feeding information about the dimensions of the new iPad to a Chinese manufacturer of tablet computer cases, so the case maker could have an iPad 2 case ready immediately upon the tablet’s release. The three employees collectively received about $3,000 – more than 10 months’ salary – and some merchandise discounts from the manufacturer of the case, reported Yahoo News.

It’s not surprising the workers were tempted. Foxconn, which also builds for tech companies such as Dell (News - Alert), Sony and Nintendo, doesn’t exactly overload its workers with benefits and high pay. Though employees received a steep rate increase recently – from about $150 a month to $300 a month – they often work 80 hours per week and even live at the plant in dormitory-style rooms. Three thousand dollars – nearly a year’s salary – might be considered worth the risk for jail time, even in a Chinese prison.

This isn’t the first time Foxconn and Apple have shared joint controversy: In 2009, Sun Danyong, a 25-year-old facility worker, committed suicide after losing a top-secret iPhone (News - Alert) 4 prototype that had been in his possession. Last month, the company’s plant in Chengdu experienced an explosion and a subsequent fire that caused three deaths and 15 injuries among workers and briefly affected iPad 2 production.

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Tracey Schelmetic is a contributing editor for TMCnet. To read more of Tracey's articles, please visit her columnist page.

Edited by Jennifer Russell
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