26 September 2024

Hack of Hezbollah devices exposes dark corners of Asia supply chains

Tim Kelly, Casey Hall and Ben Blanchard

The lethal hack of Hezbollah's Asian-branded pagers and walkie-talkies has sparked an intense search for the devices' path, revealing a murky market for older technologies where buyers may have few assurances about what they are getting.

While supply chains and distribution channels for higher-margin and newer products are tightly managed, that is not the case for older electronics from Asia where counterfeiting, surplus inventories and complex contract manufacturing deals can sometimes make it impossible to identify the source of a product, analysts and consultants say.

The response from the companies at the centre of the booby-trapped gadgets that killed 37 people and wounded about 3,000 in Lebanon this week has underlined difficulties in discerning how and when they were weaponised.

Taiwan-based Gold Apollo put the blame on a Europe-based licensee of its pager, sparking investigations in Hungary, Bulgaria, Norway and Romania into the origins of the deadly device.

Japan's Icom (6820.T), opens new tab initially said it could not tell if the walkie-talkies bearing its name were real, in a market awash with fake products. It issued a statement on Friday saying it was highly unlikely that the exploded products were theirs.


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