Slashdot Mirror


Apple Plans 'High-Tech Manufacturing' of Data-Center Gear in Arizona (businessinsider.com)

An anonymous reader shares a Business Insider report: Apple is seeking permission to conduct "high-tech manufacturing" and to build data-center server gear in a Mesa, Arizona, facility, according to a notice published Monday by the US federal government. A notification published in the Federal Register on Monday said Apple was looking for approval from the Foreign-Trade Zones Board to produce "finished products" in a special zone that exempts it from customs duty payments. "Apple Inc has repurposed the site as a global data command center that will conduct high-tech manufacturing of finished data center cabinets for other data centers," according to a document filed by Mesa on behalf of Apple in June and made public Monday. [...] The Arizona effort would mark a rare instance of a US tech company manufacturing and assembling a finished product domestically, where labor costs are higher. Apple's effort appears limited to equipment for its internal operations, however, rather than for a mass-market consumer product.

22 of 103 comments (clear)

  1. Ha HA! by Anonymous Coward · · Score: 2, Interesting

    Trump Wins Again!

    1. Re:Ha HA! by ShanghaiBill · · Score: 5, Informative

      Apple legally dodges stiff import duty.

      1. The import duties are not "stiff". They are only a few percent.
      2. Apple is not "dodging" them. The import duties would still apply for any imported components if the final product is consumed domestically. But no duties would be paid if the final product is exported ... but without the waiver, Apple would be entitled to a refund on those duties anyway, so the net result is just simplifying the paperwork.

      Who's winning here? Looks to me like it isn't the American People.

      A modest number of jobs will be created. Unnecessary bureaucratic overhead will be eliminated. How is that not a win?

  2. Server Racks by Major+Blud · · Score: 3, Funny

    "conduct high-tech manufacturing of finished data center cabinets for other data centers"

    Stores forty-two 1u servers in a stylish brushed aluminum housing. Introducing the New Apple iRack Pro.

    --
    If you post as Anonymous Coward, don't expect a reply.
    1. Re:Server Racks by sbrown7792 · · Score: 2

      Except that the entire thing is unibody and if a cable goes bad between "servers", it's cheaper to replace the entire rack.

    2. Re:Server Racks by pushing-robot · · Score: 2

      The iRack looks unstable!

      --
      How can I believe you when you tell me what I don't want to hear?
    3. Re:Server Racks by networkBoy · · Score: 2

      Heavy, less space than a petabox, lame.

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    4. Re:Server Racks by geekmux · · Score: 3, Insightful

      "conduct high-tech manufacturing of finished data center cabinets for other data centers"

      Stores forty-two 1u servers in a stylish brushed aluminum housing. Introducing the New Apple iRack Pro.

      Apple wanting to put their artistic flair inside a data center is akin to an artist painting the inside of a toilet bowl.

      The only time anyone is going to see it is when things get really shitty.

    5. Re:Server Racks by David_Hart · · Score: 2

      Except that the entire thing is unibody and if a cable goes bad between "servers", it's cheaper to replace the entire rack.

      And next year's rack will be so awesome that it will only support official Apple PDU accessories and require new magnetic power cords...

  3. Ad block blocker by houstonbofh · · Score: 3, Interesting

    If the site does not allow my Ad Block to run, I ain't looking. A warning would be nice. An alternative would be nicer.

    1. Re:Ad block blocker by subk · · Score: 2

      If the site does not allow my Ad Block to run, I ain't looking. A warning would be nice. An alternative would be nicer.

      If the site displays a message that you must turn Ad Block off, just refresh and press escape a few times as soon as the article's text appears. This will generally work to stop the script that pulls up the ad blocking message.

      --
      Now, if you'll excuse me, I have backups to corrupt.
  4. Re:Watch Trump's Twitter feed by chispito · · Score: 2

    Wait for der Drumpfenfuhrer to take credit for this.

    The sixth comment in and you managed to Godwin the thread. Keep up the good work.

    --
    The Daddy casts sleep on the Baby. The Baby resists!
  5. Are they just avoiding import tariffs? by stabiesoft · · Score: 5, Insightful

    I quickly scanned the article. My impression was they will screw them together in mesa, and all the pieces will be imported. By "finishing" the product in mesa they avoid customs on all the pieces. Before, they actually screwed them together in NC, Oregon, etc, the places they were used, and probably had to pay import taxes on the components. So net, no new US jobs, probably fewer since centralizing the finishing will optimize the process.

    1. Re:Are they just avoiding import tariffs? by Anonymous Coward · · Score: 2, Insightful

      This. I'm not sure why this is being published as a puff piece on Apple when they're really pulling a scheme that auto manufacturers perfected decades ago.

    2. Re: Are they just avoiding import tariffs? by fermion · · Score: 2

      Yes. It is to avoid taxes. Very few jobs as the robots will do the actual manufacturing. Arizona is not known for its labour force.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  6. High-tech manufacturing = Robots by Camel+Pilot · · Score: 4, Insightful

    "The Arizona effort would mark a rare instance of a US tech company manufacturing and assembling a finished product domestically, where labor costs are higher"

    Well that is because of this key phrase...

    "high-tech manufacturing"

    Meaning there will be very little labor and lot of robots.

  7. As an apple fan by dhaen · · Score: 2

    I regard this as bolloxing of the law.

  8. Re:Watch Trump's Twitter feed by NatasRevol · · Score: 4, Insightful

    If mentioning Trump is now 'godwinning' a thread, comments worldwide may as well be shut down now.

    --
    There are two types of people in the world: Those who crave closure
  9. Re:Not so fast by oh_my_080980980 · · Score: 3, Informative

    They already got it:

    "Foreign-trade zones are essentially outside US customs territory, which means companies can avoid duties when exporting or importing merchandise. The US government supports the zones to help create jobs through "the encouragement of operations in the United States which, for customs reasons, might otherwise have been carried on abroad."

    "On its domestic sales, Apple would be able to choose the duty rate during customs entry procedures that applies to finished server assembly cabinets (duty-free) for the foreign-status materials/components noted below and in the existing scope of authority," the notice continues.

  10. Re:Heat? by ncc74656 · · Score: 2

    Isn't AZ too hot? Do you really want a data center where the temperature quite often approaches 110 degrees?

    Las Vegas isn't much cooler than Phoenix (maybe 10 degrees most of the time), yet Switch is doing booming business here with datacenters popping up all over town. The temperature outside hasn't been much of an impediment for them.

    --
    20 January 2017: the End of an Error.
  11. Re:Heat? by amicusNYCL · · Score: 2

    Do you really want a data center where the temperature quite often approaches 110 degrees?

    Sure. Here's one. Take a tour. They have a facility in Scottsdale, too. Other companies host here, also. Digital Realty has nearly 1 million square feet of data center space in the county.

    Why not Idaho? Cooler weather, low taxes, and cheap real-estate.

    Idaho has a single tier-3 data center. Compared to Phoenix, I'm sure the major difference is the concentration of top-tier networks already here in Phoenix. I doubt there are as many top-tier networks running through Idaho. We also have cheap power and land, but I'm sure the prices in Idaho aren't very high either. Then again, there aren't many people in Idaho and it pays to locate your equipment near to the population centers. The population of all of Idaho is about 1.6 million, while about 4.5 million live in metro Phoenix. Intel, Motorola, and Honeywell also have a lot of major facilities here, I'm sure for many of the same reasons as the data centers.

    --
    "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
  12. Re:Heat? by mea_culpa · · Score: 2

    Mesa sees an average of 301 sunny days each year. Solar power is now at or near parity for grid power and continues to get cheaper. The heat isn't going to cost anything extra in long run.

  13. Maybe Apple should sell this stuff... by mlts · · Score: 2

    In my personal experience, Apple stuff is still widely regarded as high end in a lot of workplaces. Should Apple be able to step into the enterprise, it would definitely be a large market. It isn't like Apple hasn't been there, because with the XSan, Apple was the #2 selling storage vendor for a while (long time ago, but still notable.)

    Ideally, Apple should spin the enterprise division off, similar to Filemaker/Claris. That way, the toymaking arm can focus on new shinies while a dedicated company can work on what enterprises need. Heck, take the XServe... it may not have been a hit, but it was a very solid piece of equipment for its time. Done right, Apple could keep a premium price point and compete with things like UCS, but it would take some design (perhaps a hypervisor in the BIOS so machines can be racked/stacked/wired, turned on, and immediately be ready for taking VM or distributed storage loads), but with all the cash in Apple's war chest, they could buy Nutanix or StarWind Software and be in the enterprise game in no time.