Enter your email to read the full article.

Apple Severed Ties with Server Supplier After Security Concern

In early 2016, Apple discovered what it believed was a potential security vulnerability in at least one data center server it purchased from a U.S.-based manufacturer, Super Micro Computer, according to a Super Micro executive and two people who were briefed about the incident at Apple. The server was part of Apple’s technical infrastructure, which powers its web-based services and holds customer data.

Apple ended up terminating its yearslong business relationship with Super Micro, according to Tau Leng, a senior vice president of technology for Super Micro, and a person who was told about the incident by a senior infrastructure engineering executive at Apple. The tech giant even returned some of Super Micro’s servers to the company, according to one of the people briefed about the incident.

No subscription? You’re missing out.
Join the high-powered community of tech and business leaders who rely on The Information’s original news and in-depth reporting.
Subscribe to read the remaining 823 words of this article.
What’s included in a subscription?
Read The Information’s original, in-depth reporting and analysis
Receive as-they-happen articles via email
Talk with award-winning reporters in subscriber-only conference calls
Join the conversation on our subscriber-only Slack channel
Attend intimate, high-powered events with leaders in tech and business
Subscribe to The Information

He said Super Micro continued to fulfill prior orders to Apple until the middle of last year. In early August of last year, Super Micro disclosed in an earnings call for the June quarter that it had lost business from two key data center storage equipment customers, hurting revenue and profitability, though it didn’t identify Apple as being one of them. Super Micro’s sales in its last fiscal year were about $2.2 billion. Super Micro has manufacturing facilities in the Netherlands and Taiwan as well as San Jose, according to its filings.

4 total comments
Gearoid M. Carroll, Dave Quick and 1 other commented on this article.
Read comments from top tech and industry leaders
Joe Lonsdale
Joe Lonsdale
Founding Partner, Eight
Chamath Palihapitiya
Chamath Palihapitiya
Founder & Managing Partner, SocialCapital
Tina Sharkey
Tina Sharkey
CEO, Brandless
Jonah Peretti
Jonah Peretti
CEO, Buzzfeed
Adam D'Angelo
Adam D'Angelo
CEO, Quora
Brit Morin
Brit Morin
Founder & CEO, Brit + CO
Dustin Moskovitz
Dustin Moskovitz
Co-Founder, Asana
Christina Miller
Christina Miller
President & General Manager, Turner
Max Levchin
Max Levchin
CEO, Affirm
Adam Mosseri
Adam Mosseri
Director of Product, Facebook
Alex Mather
Alex Mather
The Athletic
Martha Josephson
Martha Josephson
Partner, Egon Zehnder
James Murdoch
James Murdoch
Co-Chief Operating Officer, 21st Century Fox
Andrew Kortina
Andrew Kortina
Founder, Venmo
Ben Chestnut
Ben Chestnut
Co-Founder & CEO, Mailchimp
Ruchi Sanghvi
Ruchi Sanghvi
VP Operations, Dropbox
Login or Subscribe to follow the discussions happening here and real-time in our   Slack Community.
An Apple representative told its account manager at Super Micro via email that Apple’s “internal development environment was being compromised.”