Buzz
Apple takes extreme measures to stop leaks about its forthcoming products before they officially launch. While other companies also take similar precautions, Apple has more at stake. As one of the most imitated companies globally, consistent leaks could hurt its profits and give competitors and imitators an advantage.
However, Apple has learned that keeping secrets is no easy feat, especially when you're a trillion-dollar enterprise with over a hundred thousand employees. Everyone from the media to fans and investors is eager to know what the company is working on, often going to great lengths to uncover any information.
10. It enlists digital forensics firms to track down leakers
Apple’s workforce is notorious for leaking confidential information to the press. This issue has become so widespread that even a memo warning staff against leaking has itself been leaked. Additionally, details from a meeting where executives discussed ways to catch the leakers were also made public.
In response, Apple takes significant measures to identify and expose leakers. The company has even hired digital forensics firms like Global Security to trace leaked documents back to their origins.
To date, Global Security has uncovered several Apple employees responsible for leaking confidential information about unreleased products to the media. The firm also collaborates with Apple’s suppliers to identify leakers, as well as those who unlawfully accessed restricted areas or stole patents, prototypes, and finished products.
9. Apple imposes fines on its suppliers
A few years ago, GT Advanced, a sapphire glass supplier, filed for bankruptcy. Shortly afterward, the company accused Apple of contributing to its financial collapse by levying a $50 million fine against it.
The exact details of the fine remain unclear because both companies agreed to a non-disclosure contract. However, based on the limited information GT’s legal team shared in court, it is known that Apple fined the company for leaking information about the unreleased iPhone 6. GT’s attorneys referred to the agreement between the two companies as 'oppressive and burdensome.'
Reports suggest that Apple consistently fines its suppliers when leaks are traced back to their facilities. Suppliers cannot refuse to pay the fines, as it is a stipulated term in their contracts. Apple and GT eventually settled for $ million.
8. It assigns codenames to its unreleased products
Apple assigns codenames to all of its prototypes and upcoming products, ensuring that even if a codename is leaked, no one will have any idea what the actual product is.
For instance, the Apple Watch was referred to as Gizmo, Mac OS was codenamed Systems, and the iPhone was given the codename Purple. The iPhone was developed in a special 'lockdown room'—known as the Purple dorm—where employees followed strict rules, including never discussing the prototype outside the room.
The 1994 Power Macintosh 7100 was originally codenamed after astronomer Carl Sagan, who was not pleased upon learning this. In response, Apple renamed it Butt-headed Astronomer. Sagan sued, both over the Butt-headed Astronomer name and the Carl Sagan name. He lost both cases, but eventually, he and Apple agreed to rename it LAW, which stood for Lawyers Are Wimps.
The controversial naming practice was also applied to Mac OS 7.5, which was set for release in 1994. Initially codenamed Mozart, it was later changed to Capone after Apple discovered that Windows had named its upcoming release Windows 95 as Chicago. Apple's new name was a nod to the notorious gangster Al Capone, who once controlled the Chicago underworld.
7. It recruits former intelligence agents to safeguard unreleased products
Apple’s extensive network of suppliers often represents its most vulnerable link. Their employees are notorious for leaking details about unreleased products. One of the biggest leaks occurred when an employee from a Chinese supplier, Jabil, stole thousands of casings for the unreleased iPhone 5c and shared them with the media.
In response, Apple assembled a team of former U.S. military personnel and intelligence agents to monitor its Chinese suppliers. This team was known as the New Product Security Team (NPS). All members were fluent in Chinese, ensuring there were no language barriers.
The NPS had unrestricted access to the suppliers' factories, where they conducted inventory audits and rummaged through trash to ensure no materials were missing. Their efforts were largely effective. On one occasion, they even uncovered workers who had tunneled to smuggle Apple products out of an unnamed supplier’s factory.
6. It threatens to terminate contracts
Apple has several measures it can take against suppliers and contractors who leak information about its unreleased products. These include fines, filing charges, or in extreme cases, even terminating contracts, even when there is only a suspicion of their involvement in the leak.
This has led many Apple contractors, such as Foxconn, which assembles iPhones, to turn their facilities into near-impenetrable fortresses. Foxconn employees are granted access to the factory only through security cards, and their identities are verified through fingerprint scans. Before leaving, guards also use metal detectors to check for any unauthorized items.
Apple’s contractors take security so seriously that at a Foxconn facility in Longhua, China, guards beat and harassed a Reuters reporter who was photographing the facility from a distance. The harassment only stopped when the reporter involved the police.
The reporter later realized that all he would receive was an apology after a police officer told him, 'You are free to do what you want, but this is Foxconn and they have special status here.' The reporter chose not to pursue any charges.
5. It creates lockdown rooms
If you think Apple is tough on its suppliers and contractors, just wait until you see how it treats its own employees. Like contractors, most Apple employees are kept in the dark about the company’s unreleased products. They’re only given the information they need, when they need it.
Employees start to suspect something is underway when they see a carpenter walking into their office. However, in line with Apple's policies, they don’t ask questions, knowing that if it were relevant to them, someone would have informed them.
The carpenters then proceed to set up windowless rooms that are restricted to authorized personnel only. Apple refers to these rooms as 'lockdown rooms'. These are where most of Apple's new products and services are developed.
Employees outside of the office realize the existence of a lockdown room only when their access badges no longer work for certain rooms or offices. The rest of the staff remains unaware of what’s happening, often as surprised as the public when Apple suddenly unveils a new product.
4. It locks its prototypes with bicycle chains
The iPad was created in one of the previously mentioned windowless lockdown rooms. A developer who worked on the iPad's code revealed that he was the sixth person to touch the unreleased device and one of only four individuals permitted in the lockdown room with the prototype iPads.
To prevent developers from seeing the tablets, Apple placed them in frames. Additionally, they couldn’t move the devices as Apple secured them to the table with bicycle chains. Apple also photographed every area of the table holding an iPad, so they could trace any leaked pictures by analyzing the wood grain patterns.
The developer also shared that Apple recorded the names and social security numbers of everyone in the room. They were explicitly prohibited from discussing the iPad with anyone, including their boss and spouse.
3. It prohibits employees from discussing Apple online
Apple has strict policies outlining what employees can and cannot disclose about the company and their colleagues. These rules apply even when the employee does not openly identify as working for Apple. For instance, employees are prohibited from discussing another employee without prior consent from the individual involved.
Employees are also forbidden from posting about Apple on blogs or websites, whether the site belongs to them or to Apple, and they cannot comment on any rumors surrounding Apple anywhere online, even if they are merely expressing their personal opinion.
These regulations extend to those who publicly identify as Apple employees on social media. Apple expects them to behave appropriately, as they are viewed as representatives of the company. For instance, they are prohibited from commenting on controversial topics online.
2. It created a restaurant exclusively for employees
To prevent leaks of sensitive information, Apple took the extraordinary step in 2012 of constructing an exclusive restaurant for its employees at its previous headquarters in Cupertino, California. This move kept employees separate from the public to maintain confidentiality.
At one point, Apple had a restaurant inside its Cupertino headquarters, but it was only open to visitors if they were accompanied by an Apple employee. Eventually, Apple grew concerned that simply having an employee with them wouldn't prevent competitors and journalists from potentially overhearing sensitive discussions. To counter this, Apple constructed a second restaurant exclusively for employees.
1. It required third-party developers to sign non-disclosure agreements
As is common in the tech industry, Apple requires all of its employees to sign non-disclosure agreements (NDAs). However, Apple faced backlash when it demanded that third-party developers creating apps for the App Store also sign NDAs, a move that made headlines for the wrong reasons.
At the time, Apple had just opened the App Store to third-party developers and was concerned that these developers might leak confidential information that could benefit Apple's competitors. The agreement prohibited developers from revealing any details about their app projects, or even sharing whether their app was rejected from the store.
The NDA quickly became controversial, as many developers, who were not Apple employees, enjoyed sharing progress updates with their community. The backlash from the developer community was so strong that Apple decided to suspend the agreement just a few weeks later.
