The release of iOS 18.1 signifies that Apple Intelligence is ready for primetime. Still, a tremendous amount of work remains, such as expanding upon generative AI features, which can only be completed with additional server capacity. To fulfill this expansion, Foxconn is said to be in talks with the technology giant regarding building the necessary hardware for this goal, but there is a possibility that more players may enter Apple’s supply chain for this very purpose.
Apple is also reportedly engaged with Lenovo and its subsidiary to assist in designing some of the servers
The latest report from Nikkei Asia mentions that Apple and Foxconn have entered into discussions, with the world’s largest iPhone assembling firm possibly being tasked with the responsibility to mass produce servers that will allow millions of people to access cloud-based Apple Intelligence features. No agreement has been signed yet, so nothing is set in stone right now, primarily because Foxconn might have its hands full with building NVIDIA’s AI servers, meaning that Apple’s allocated capacity might be limited.
The Cupertino firm may have anticipated this hurdle, which is why Apple is also said to be in talks with China’s Lenovo Group and its subsidiary, LCFC, to help in the designing of these servers. It is also possible that other players, like Universal Scientific Industrial, will enter the supply chain to increase production capacity. The exact number of Apple Intelligence servers required for the upcoming batch was not mentioned, but the report does state that this hardware will be for internal use and could be a small order size.
If it was any other firm besides Apple trying to ink an agreement with Foxconn, the latter might not have paid any attention to the small order size. However, the Chinese assembling giant’s biggest customer is Apple, with approximately 60 percent of the world’s iPhones coming out of Foxconn’s Zhengzhou facility, so it would be in the manufacturer’s best interest to give priority to its client. After all, the iOS 18.2 update is reported to arrive earlier and is said to come with more Apple Intelligence features, meaning that allocating sufficient server space is paramount.
News Source: Nikkei Asia
