Apple is expected to begin production of two new iMac all-in-one (AIO) PCs in May 2017 for an official launch in the second half of the year, according to sources from Taiwan-based supply chain makers.

Apple is also testing a new server-grade iMac for the high-end sector currently and the product's major competitor is expected to be Microsoft's recently released Surface Studio.

Microsoft released the Surface Studio AIO PC in the fourth quarter of 2016, which has prompted first-tier PC vendors including Hewlett-Packard (HP) and Asustek Computer to release similar products. Asustek's high-end AIO PCs are expected to be announced around Computex 2017.

The two new iMacs for 2017 are expected to be manufactured by Quanta Computer. Quanta declined to comment on its orders or clients.

The new server-grade iMac is expected to feature Intel's Xeon E3-1285 v6 processor, 16-64GB ECC RAM, up to 2TB NVMe SSD and a latest discrete graphics card.