Corruption at DJI may cost the company $150 million

DJI, the world’s leading maker of consumer drones, said today that extensive corruption discovered within the company could lead to losses as great as $150 million in the 2018 financial year. The exact nature of the corruption is not stated, but it seems to involve dozens of people at the least.

The China Securities Journal, a state-operated finance-focused newspaper, got hold of an internal company report on a corruption investigation that said some 40 people had been investigated so far, but the numbers may also be as high as 100.

Reuters confirmed with the company that it “set up a high-level anti-corruption task force to investigate further and strengthen anti-corruption measures,” and that “a number of corruption cases have been handed over to the authorities, and some employees have been dismissed.”

When contacted for details, DJI offered a statement (just after this post went live) partly explaining the situation:

During a recent investigation, DJI itself found some employees inflated the cost of parts and materials for certain products for personal financial gain. We took swift action to address this issue, fired the bad actors, and contacted law enforcement officials. We continue to investigate the situation and are cooperating fully with law enforcement’s investigation.

We are taking steps to strengthen internal controls and have established new channels for employees to submit confidential and anonymous reports relating to any violations of the company’s ethical and workplace conduct policies.

It’s a little hard to believe that people padding invoices and giving sweetheart deals to certain contractors for kickbacks could amount to more than a million dollars per person involved, but then again, DJI makes a lot of hardware and a few well-placed people could siphon off quite a bit.

This $350,000 Swiss watch looks like an Apple Watch, chimes to tell the time

H. Moser & Cie. Swiss Alp is back with another Apple Watch lookalike. The $350,000 Watch Concept Black is a ludicrous take on the classic minute repeater design. And on this version, the wearer can only tell the time by chiming the watch.

These sort of watches have a storied history that predate wristwatches by hundreds of years. Called minute repeaters, they allow the wearer to hit a button and the watch will respond with chimes indicating the time of the day. The movements were developed before artificial illumination made it possible for watchmakers to add glow-in-the-dark markings. But this is far from a working man’s watch. H. Moser worked with Manufactures Hautes Complications SA to develop the custom movement for this watch.

Flip the watch over, and the watch’s cost is explained in the custom movement. This minute repeater has a rectangular-shaped movement. It’s special. To chime, two small hammers strike a gong that runs around the outline of the rectangle casing. Despite the odd shape, the watch is capable of producing a chime Hodinkee calls “crisp, clear, and resonant, with none of the dampening you’d expect from a heavy precious metal case.”

To set the time, the wear chimes the watch using the slide on the side of the casing. Then the wearer adjusts the time using markers on the crown. I like it. It’s a simple and clever way to set a watch without hands.

This watchmaker started using the Apple Watch design in 2016 and now has a range of timepieces that mimic the rounded square look in its Swiss Alp Watch line.

H. Moser is known for its concept watches. Don’t expect this watch to be in your local Tourneau. It’s a publicity stunt for H. Moser’s custom watch business that lets the ultra-rich develop one-off timepieces. As for this concept, I’m a fan. The watch demonstrates everything special about the watch industry right now. After years of getting beat up from the Apple Watch, it’s finding its groove in producing both beautiful and affordable mechanical watches and wonderful unattainable timepieces. To be justified, watches do not have to have apps; they just have to delight the wearer — and this $350,000 watch does just that.