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  • Bugged Phone Tripped Up Apple Leaker


    An employee at an Apple parts supplier has been caught on tape selling inside information [pdf] about Apple to a hedge fund broker. The information, potentially worth millions to the broker, was sold by Walter Shimoon for a mere $22,000. Shimoon has since been fired by camera and charger component maker Flextronics International, and was arrested by US law enforcement this morning. Among other things, he was recorded leaking sales information, details about the iPhone's cameras and about a mysterious product known only as "K48."

    Shimoon, who played a role in contract negotiations with Apple, is alleged to have passed information via phone calls with clients of Primary Global Research, an expert-networking company based in California. One of the people he was talking to, however, was a government witness who was recording the phone calls. According to the recordings, Shimoon revealed third quarter 2009 sales figures for iPhones and fourth quarter 2009 sales figures for iPods during a phone call in October 2009. During this call, Shimoon also let drop the news that the 2010 iPhone would have two cameras. "We're working with them on the camera," Shimoon said, according to the complaint against him. "You know, they're very secretive."

    In the same phone call, Shimoon also revealed that Apple was working on a top secret product, which was known internally at the company as "K48." His information about the new product was sketchy, Shimoon explained, but he made some educated guesses that turned out to be pretty accurate: "It's totally ... It's a new category altogether... It doesn't have a camera, what I figured out. So I speculated that it's probably a reader... Something like that. Um, let me tell you, it's a very secretive program," he said. Shimoon also added that "at Apple you can get fired for saying K48... that's how crazy they are about it."

    Shimoon apparently thought he was safe because he wasn't writing anything down, only talking on the phone. In a conversation about the insider-trading prosecution of billionaire Raj Rajaratnam, he noted that "it's all done via voice, there's no real record of information," but observed that "it would really suck if you recorded all the calls."

    Smart guy.

    Source: Fortune
    This article was originally published in forum thread: Bugged Phone Tripped Up Apple Leaker started by Paul Daniel Ash View original post
    Comments 30 Comments
    1. locobans's Avatar
      locobans -
      That's crazy hahaha
    1. SirTimothy1's Avatar
      SirTimothy1 -
      Now I want to know what K48 is...
    1. Snboard2286's Avatar
      Snboard2286 -
      iPad?
    1. Orby's Avatar
      Orby -
      K48AP, a.k.a., the model number for the iPad.

      This should be a lesson to anybody reading this forum at Apple HQ: You. ARE. ALWAYS. Being. Watched. Apple protects their secrecy very well.
    1. cory's Avatar
      cory -
      Quote Originally Posted by SirTimothy1 View Post
      Now I want to know what K48 is...
      I'm guessing that k48 was the code name for the iPad. No camera, probably a reader. Everything else in the release seamed to be old news, so I'm guessing they were talking about the iPad. Makes sense to arrest him now since anything on the tapes is old news.
    1. Zokunei's Avatar
      Zokunei -
      Sounds like a good movie
    1. roneraven's Avatar
      roneraven -
      I would have sold the info for atleast 25k lol
    1. piston597's Avatar
      piston597 -
      Why do they make it sound like some movie...
    1. dq13's Avatar
      dq13 -
      that guy probably made 22k in a couple of months.. so not worth it, lose the job and now you will never find something that good and all for a couple of months worth of salary
    1. whereswaldo's Avatar
      whereswaldo -
      Quote Originally Posted by Snboard2286 View Post
      iPad?
      Um, thats not top secret, it was anounced 11 months ago
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by whereswaldo View Post
      Um, thats not top secret, it was anounced 11 months ago
      My understanding is that these recordings are from a couple months ago.
    1. whereswaldo's Avatar
      whereswaldo -
      Quote Originally Posted by sziklassy View Post
      My understanding is that these recordings are from a couple months ago.
      A few months ago the iPad still existed
    1. thetoothfairy's Avatar
      thetoothfairy -
      Stupid to do such a thing... especially for the amount he got... if I still worked my job would mean more than doing something like this!
    1. jiniej's Avatar
      jiniej -
      Stupid to do such a thing... especially for the amount he got... if I still worked my job would mean more than doing something like this!
      Greed
    1. CynicalDriver's Avatar
      CynicalDriver -
      Quote Originally Posted by sziklassy View Post
      My understanding is that these recordings are from a couple months ago.
      The phone call was recorded in October 2009. I'm guessing the "4Q figures" was a typo and supposed to be 3Q figures, or 4Q projections.

      It was obviously about the iPad. Nothing else fits the description, vague, but revealing.
    1. whereswaldo's Avatar
      whereswaldo -
      Quote Originally Posted by CynicalDriver View Post
      The phone call was recorded in October 2009. I'm guessing the "4Q figures" was a typo and supposed to be 3Q figures, or 4Q projections.

      It was obviously about the iPad. Nothing else fits the description, vague, but revealing.
      Nothing that we know of, maybe its something that there haven't been reports or rumors of
    1. CynicalDriver's Avatar
      CynicalDriver -
      Quote Originally Posted by whereswaldo View Post
      Nothing that we know of, maybe its something that there haven't been reports or rumors of
      As of October 2009, the iPad hadn't even reached proper "Apple Rumor" status, and even the rumors that were out didn't paint any kind of picture about what they were building. Most people assumed the hush was about iPhone 4. The iPad was finally unveiled in Jan '10, which silenced many people about iPhone 4 until the famous "bar incident."

      Realistically though, I don't think that's what got him. I think dropping the bit about the next iPhone having two cameras instead of one killed him. That would have actually been a tangible piece of information for investors/competitors to guess the direction of the iPhone.
    1. Bluprint's Avatar
      Bluprint -
      Snitches
    1. cheekydevil1234's Avatar
      cheekydevil1234 -
      records show this relates to conversations held between 2008 and the start of 2010, this lines up in relation to the ipad
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by cheekydevil1234 View Post
      records show this relates to conversations held between 2008 and the start of 2010, this lines up in relation to the ipad
      Oh wow that narrows it down lol. I saw on Patently Apple that the iPad was in concept even before the iPhone's release, so it could have been the iPad anywhere between 2007-2010.