Execs face jail on back of iPod order cut

The success - and power - of Apple through its iPod family has led to serious charges in Taiwan

In a perfect example of the power of the mighty iPod, nine executives at a Taiwanese electronics company face jail time for insider trading. The root of their actions? Failing to reveal that Apple was slashing its orders for the firm to manufacture the player.

The execs at Inventec Appliances have been indicted in Taiwan on suspicions that, although they knew of Apple's intentions to halve its iPod order, they kept the information to themselves while they sold off company shares for their own gain.

Costly secrets

Apple told them in January 2006 that it would be cutting its order by 49 per cent and moving the lost production to China. Yet prosecutors claim that the information was not made public until mid-March.

In the intervening period, the accused sold around $22.4 million (£11.3 million) of Inventec shares. After full disclosure, the company's stock lost almost half its market value.

Inventec's chairman, Jackson Chang, and president, Daniel Lee, face a prison term of six and a half years and seven and a half years, respectively, as well as fines of up to £1 million. The company's monthly revenue has also been hit hard. It's currently bumping along at less than half of its peak before the Apple debacle.

TOPICS

J Mark Lytle was an International Editor for TechRadar, based out of Tokyo, who now works as a Script Editor, Consultant at NHK, the Japan Broadcasting Corporation. Writer, multi-platform journalist, all-round editorial and PR consultant with many years' experience as a professional writer, their bylines include CNN, Snap Media and IDG.

Latest in Portable Media Players
FiiO JM21 portable music player on a white surface
I tested the FiiO JM21 portable music player and it's hard to believe an entry-level digital audio device can sound so good for so little outlay
Shanling M8T Hi-Res Music Player laid out on wooden table, with black headphones nearby.
This portable Hi-Res Audio music player has a tube amp and Android, for a serious mix of the retro and modern
We Are Rewind cassette player at CES 2025 on the show floor
This modern cassette player with Bluetooth (and matching retro wireless headphones) might've been my favorite music experience at CES 2025
FiiO M23 on a wooden table
FiiO M23 portable music player review: delicate yet muscular, assertive yet subtle, lavishly detailed and vaultingly dynamic
Activo P1 on a mustard-colored blanket
Activo P1 music player review: Astell & Kern audio quality for considerably less cash
Astell & Kern A&ultima SP3000T portable music player playing Chick Corea on a white surface
Astell & Kern A&ultima SP3000T portable music player review: another huge step forward in energetic, open sound
Latest in News
Salesforce Agentforce 2dx
Salesforce gives AI agents the power to be proactive and autonomous like never before
Microsoft Store logo on a blurred background
There's finally a fix for an annoying Microsoft Store bug that's older than Windows 11
A screenshot showing Naoe looking at the hidden blade in Assassin's Creed Shadows
Prep 107GB of space as Assassin's Creed Shadows preload and expected global release times are shared by Ubisoft
Google Pixel Watch 3 side dial and button
The Pixel Watch just got a secret display upgrade in Wear OS 5.1, but here’s why you probably shouldn’t use it
Sam Altman and OpenAI
UK regulator clears Microsoft’s $13bn deal with OpenAI after lengthy delay
the last of us 2 gate codes
The Last of Us director Neil Druckmann speaks on the possibility of The Last of Us Part 3: 'I guess the only thing I would say is don’t bet on there being more'