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Apple adds new Server Supplier in China to Reduce Costs

10. 05 SNAP NEWS
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One of the concessions Apple made with China's Government was to use China-based data centers. Today we learn that Apple is planning to reduce its costs from servers. The company has been seeking new server suppliers with lower quotes and expects the move to give its existing server partners pressure on reducing their prices, according to sources from the upstream supply chain.

 

Apple has recently increased orders for server system integrator ZT, which is a partner of Taiwan-based Inventec, and added China-based Inspur to its server supply chain. As a result, server supply from Apple's existing partner Quanta Computer was dropped, the sources noted.

 

In the past, Apple's biggest concern was mainly improvements in technologies and yield rates on the supply side, but the company is now focusing more on reducing costs.

 

According to DigiTimes, Inventec's datacenter server shipments grew 20% in the first half mainly thanks to orders from China's Baidu, Alibaba and Tencent as well as Apple, the sources pointed out.

 

In the U.S., several sources have noted that Apple uses HP servers in their data centers.

 

10. 1 PA - Bar - News

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