
Container trucks and fork lifts rumble nonstop across the sprawling compound, serving a grid of factories that churn out electronics goods for top global brands around the clock.
Inside the walled city — one of several compounds run by Foxconn International, a major supplier for Apple Inc — employees are provided with most of their daily needs. There are dormitories, canteens, recreation facilities, even banks, post offices and bakeries.
The rank-and-file within the compound have little reason to venture outside. That reduces the likelihood of leaks, which in turn lessens the risk of incurring the wrath of Apple and its chief executive, Steve Jobs, whose product launches have turned into long-running, tightly controlled media spectacles.
Many of Apple’s finished gadgets, from iPods to iPads, are assembled at industrial compounds like the one in Longhua. And when it comes to guarding Apple’s secrets, Foxconn, a unit of Taiwan’s Hon Hai Precision Industry, and other suppliers throughout the region leave little to chance.
“Security is tight everywhere inside the factories,” said a uniformed worker outside the Foxconn factory in Longhua, about an hour from Hong Kong. “They use metal detectors and search us. If you have any metal objects on you when you leave, they just call the police,” he said.
Hon Hai spokesman Edmund Ding declined to comment for this article, as did Apple.
But industry sources in China and elsewhere in Southeast Asia say that Apple goes to what one person in the business termed “extreme lengths” to protect even the smallest details of its new products under development.
Many of the Cupertino, California-based company’s tactics read like something from a spy novel: information is assiduously guarded and handed out only on a need-to-know basis; employees suspected of leaks may be investigated by the contractor; and the company makes it clear that it will not hesitate to sue if secrets are spilled.
On occasion, Apple will give contract manufacturers different products, just to try them out. That way, the source of any leaks becomes immediately obvious, people familiar with the supply chain said.
And unlike other electronics makers, some of whom prefer the convenience of one-stop shopping, Apple doesn’t rely on a single firm to supply everything for a product. The industry sources say the company will often minutely divvy up projects.
“This ensures that the only people who have all the secrets to any Apple product is Apple itself,” said a senior official at a subsidiary of Hon Hai Precision Industry. “Other tech companies will also look for their own sources of components to compare, but none of them do as many things in-house as Apple does.”
The upshot is that even the people who man the assembly lines have no idea what the finished product will look like.
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