Three Foxconn R&D employees in China were sentenced to prison for leaking details about the iPad 2 before its launch. The employees received sentences ranging from one year to 18 months and were fined between $4,500 and $23,000 for violating trade secrets. The arrests, which took place in December 2010, highlight Apple’s aggressive stance on protecting its product secrecy. It also shows how importamt it is for the largest manufacturer of Apple’s product to ensure this secrecy around the company’s products.The three Foxconn employees reportedly provided digital images of the iPad 2’s design to Shenzhen MacTop Electronics, an Apple-compatible accessory manufacturer founded in 2004. In exchange, MacTop paid the employees 20,000 yuan (approximately $3,000) and offered discounts on its products. This allowed MacTop to produce iPad 2 cases ahead of competitors, gaining a market edge. According to Cult of Mac, “The leaked information gave MacTop a significant head start, showcasing how valuable Apple’s trade secrets are in the competitive accessory market.”
Apple’s strict secrecy policy for its products
Despite this high-profile case, leaks of Apple products persist, given the thousands of workers involved in its supply chain, many earning low wages. “It’s actually surprising that more Apple leaks don’t surface, considering the scale of their manufacturing operations,” Cult of Mac noted. Apple’s secrecy measures have since intensified, including deploying undercover security teams and imposing multimillion-dollar fines on suppliers who fail to safeguard confidential information.While Apple CEO Tim Cook has been slightly more forthcoming about future plans than Steve Jobs, the company remains fiercely protective of its hardware details. A leaked internal memo a few years ago underscored the severe consequences for employees who disclose sensitive information. With billions at stake in product launches, Apple’s ongoing battle against leaks shows no signs of slowing down.
