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Apple to spend $304M on new Austin, Tex., campus, creating 3600 new jobs

post #1 of 90
Thread Starter 
Apple plans to invest $304 million on a new campus in Austin that will create 3,600 new jobs and double the size of its workforce in Texas.

Apple's plans were revealed on Friday by the office of Gov. Rick Perry, which revealed the state will award Apple $21 million over 10 years through the Texas Enterprise Fund. In return, Apple will expand its customer support, sales and accounting functions in the region.

"Apple is known for its bold innovation and game-changing designs, and the expansion of their Austin facility adds to the growing list of visionary high-tech companies that have found that Texas' economic climate is a perfect fit for their future, thanks to our low taxes, reasonable and predictable regulations, fair legal system and skilled workforce" Perry said. "Investments like this further Texas' potential to become the nation's next high-tech hub."

The Texas Enterprise Fund offers companies incentives to invest in Texas. The new partnership with Apple will be one of the largest job creation initiatives in TEF history, and one of the largest capital investments by a TEF recipient.

The deal hinges on finalized contracts, as well as a local incentive agreement that must be approved by the city of Austin, and Travis County.

The TEF was created by the Texas Legislature in 2003, and funding was re-appropriated for the program in 2005, 2007, 2009 and 2011. TEF projects must be approved by the state's governor, lieutenant governor and speaker of the house.

The governor's office said TEF has become one of the state's most competitive tools to recruit and bolster business. To date, the fund has invested more than $443.4 million to help generate more than 62,000 new jobs and $15.4 billion in capital investment.

The announcement comes as Apple is gearing up to open a new retail store next week in Houston at the Highland Village Shopping Center. The store will open next Friday, March 16, the same day the third-generation iPad will go on sale.

[ View article on AppleInsider ]
post #2 of 90
Here we go with all the complaints about TX 'giving money' to Apple.......
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Gatorguy 5/31/13
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post #3 of 90
Quote:
Originally Posted by jragosta View Post

Here we go with all the complaints about TX 'giving money' to Apple.......

It's just a matter of time. Luckily, I've got my popcorn ready.

Can't wait to see the spin on this one.
post #4 of 90
Apple is bolstering its law department to counter all of the patent trolling coming from East Texas...
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post #5 of 90
Quote:
Originally Posted by Postulant View Post

It's just a matter of time. Luckily, I've got my popcorn ready.

Can't wait to see the spin on this one.

It doesn't surprise me. North Carolina gave Apple a bundle to build the center there. Most, if not all states, do the same thing--as long as they have any money to spend!

I'd still like to know what this facility will be used for. Tech support? Manufacturing? Nothing was said in this article.
post #6 of 90
In other news from the area, a certain east Texas court house seems to be missing ....
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Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #7 of 90
Quote:
Originally Posted by rob53 View Post

It doesn't surprise me. North Carolina gave Apple a bundle to build the center there. Most, if not all states, do the same thing--as long as they have any money to spend!

I'd still like to know what this facility will be used for. Tech support? Manufacturing? Nothing was said in this article.

I guess you missed the second paragraph:
Quote:
Apple will expand its customer support, sales and accounting functions in the region.
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post #8 of 90
Never thought I'd see Apple and Rick Perry in a sentence together. I vomited a bit.
post #9 of 90
Quote:
Originally Posted by jragosta View Post

Here we go with all the complaints about TX 'giving money' to Apple.......

I guess a $100 billion in the bank doesn't stop you taking all the state handouts you can get.
post #10 of 90
Sounds like a good investment by Texas to me. Apple cannot change the way they do business or else that profit margin of theirs will shrink fast.
post #11 of 90
Quote:
Originally Posted by Shaun, UK View Post

I guess a $100 billion in the bank doesn't stop you taking all the state handouts you can get.

The best way to keep that $100 billion safely in the bank is to spend as little of it as possible.... If handouts are being offered then Apple would be foolish not to use them.
post #12 of 90
Quote:
Originally Posted by AppleInsider View Post

In return, Apple will expand its customer support, sales and accounting functions in the region.

Sounds like a big call center. It is their decision to make, but it would have been nice to see another commitment from Apple to build something like this in another rural community.
post #13 of 90
Quote:
Originally Posted by island hermit View Post

Apple is bolstering its law department to counter all of the patent trolling coming from East Texas...

The trolling does not come from East Texas. It is a Federal District Court, not a state court. Most of the plaintiffs are not based in Texas.
post #14 of 90
Quote:
Originally Posted by Slurpy View Post

Never thought I'd see Apple and Rick Perry in a sentence together. I vomited a bit.

Wait until "O" takes credit for the job creation, then you'll have a lot of vomit...

Nevertheless, good news for job seekers in Texas.
/
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post #15 of 90
the only question is, why did it take so long to move out of california?

moving from a pro union, super liberal giveaway state to a state that is growing jobs
at a terrific pace, is most natural. calif has the highest gas prices, highest taxes and, imo, the most politicians per person.

now they need other right to work states to move to.
post #16 of 90
Quote:
Originally Posted by Shaun, UK View Post

I guess a $100 billion in the bank doesn't stop you taking all the state handouts you can get.

Yep. Right on cue.

Sorry, but I don't see how "if you spend $304 M create thousands of jobs, and pay many millions of dollars in taxes, we'll give you back $2.1 M per year for 10 years" constitutes taking a state handout.
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post #17 of 90
Quote:
Originally Posted by ezduzit View Post

the only question is, why did it take so long to move out of california?

moving from a pro union, super liberal giveaway state to a state that is growing jobs
at a terrific pace, is most natural. calif has the highest gas prices, highest taxes and, imo, the most politicians per person.

now they need other right to work states to move to.

Apple's had a campus in Austin for quite some time. This is just a plan to expand it.
post #18 of 90
Quote:
Originally Posted by ezduzit View Post

the only question is, why did it take so long to move out of california?

moving from a pro union, super liberal giveaway state to a state that is growing jobs
at a terrific pace, is most natural. calif has the highest gas prices, highest taxes and, imo, the most politicians per person.

now they need other right to work states to move to.

They aren't moving out of California. Did you miss the news about the huge new headquarters office building they are planning for Cupertino? This Texas facility is just a cubicle farm for people not involved in the creative efforts of the company.
post #19 of 90
Quote:
Originally Posted by msimpson View Post

The trolling does not come from East Texas. It is a Federal District Court, not a state court. Most of the plaintiffs are not based in Texas.

No shit, Einstein.

... but I'm sure that most people on here knew what I meant (except you, of course).
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post #20 of 90
Quote:
Originally Posted by sessamoid View Post

Apple's had a campus in Austin for quite some time. This is just a plan to expand it.

Right! And Austin has long been a high tech center for many other top tier companies as well, so there is a great labor pool of engineers to poach from already in place.

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post #21 of 90
Since Apple is building the mothership in Cupertino, they should also design a scaled down version, a.k.a. "the daughtership"
The should make all their future regional offices daughterships.

post #22 of 90
Quote:
Originally Posted by ezduzit View Post

the only question is, why did it take so long to move out of california?

moving from a pro union, super liberal giveaway state to a state that is growing jobs
at a terrific pace, is most natural. calif has the highest gas prices, highest taxes and, imo, the most politicians per person.

now they need other right to work states to move to.

That super liberal state is attractive to the kind of open-minded people who develop new ideas. Ever notice the products all say "Designed by Apple in California"? The super liberal state is where the mouse was invented. It's where Intel, Oracle, Facebook, Google, Tesla, and Pixar are.

Texas has an authoritarian culture that results in companies that don't think outside the box, like Dell or Compaq. It's fine for a call center or an accounting services hub, but not for hardware design or software development of the kind Apple does.

So if you are really so right-wing as you sound, you need to come to terms with the fact that Apple is the product of a liberal culture, and try to figure out why that might be. If you like Apple, maybe you need to drop some of your prejudices and let out your inner liberal...
post #23 of 90
[QUOTE=rob53;2067547
I'd still like to know what this facility will be used for. Tech support? Manufacturing? Nothing was said in this article.[/QUOTE]

The third sentence says "Apple will expand its customer support, sales and accounting functions in the region."
post #24 of 90
Rick Perry LOVES AMERICA!

cracks me up every time I see it! lol
post #25 of 90
Quote:
Originally Posted by DaveMcM76 View Post

The best way to keep that $100 billion safely in the bank is to spend as little of it as possible.... If handouts are being offered then Apple would be foolish not to use them.

I don't blame them for taking the money. Interesting debate. State aid/intervention to secure jobs in your state. Does that still classify as capitalism? I thought the Republicans where against spending government money like this, unless of course your running for President
post #26 of 90
Quote:
Originally Posted by Slurpy View Post

Never thought I'd see Apple and Rick Perry in a sentence together. I vomited a bit.

Huh?
Whats not to like about Taxes.
Pretty much no taxes.
You can buy a 5,000SF house on a golf course for ~$500k.
People are polite and have manners.
Government leaves you alone more less.
The legislature is only part time so they don't see the need to pass frivolous laws to make it seem like they are busy.
Gas averages $3.06 per gallon while CA is at $4.35 per gallon.
You have the right to protect yourself, your family, and your property.

What am I missing?
post #27 of 90
Quote:
Originally Posted by Alonso Perez View Post

That super liberal state is attractive to the kind of open-minded people who develop new ideas. Ever notice the products all say "Designed by Apple in California"? The super liberal state is where the mouse was invented. It's where Intel, Oracle, Facebook, Google, Tesla, and Pixar are.

And they were founded years ago, the hardware makers generally being spinoffs of companies like HP, Varian, Fairchild and others dating back as far as the 1930s.

There is no question that California has become increasingly hostile to businesses operating in the state, and it's not getting better. More and more companies are either moving out, or limiting any expansion to areas outside California.

A pity, really, it's a beautiful state with (still) enormous resources, both natural and human. I've lived here all my life, more than 60 years, and I don't think I'll be able to stay much longer.
post #28 of 90
Quote:
Originally Posted by Patranus View Post

Huh?
Whats not to like about Taxes.
Pretty much no taxes.
You can buy a 5,000SF house on a golf course for ~$500k.
People are polite and have manners.
Government leaves you alone more less.
The legislature is only part time so they don't see the need to pass frivolous laws to make it seem like they are busy.
Gas averages $3.06 per gallon while CA is at $4.35 per gallon.
You have the right to protect yourself, your family, and your property.

What am I missing?

Everything apparently. I have lived in Texas my whole life and it really is a place full of narrow minded, belligerent people who are irrationally afraid of government. We have high pollution, high poverty, high hunger rates and businesses that are abusive of their employees. All made possible by the best state government money can buy.
post #29 of 90
Quote:
Originally Posted by Alonso Perez View Post

That super liberal state is attractive to the kind of open-minded people who develop new ideas. Ever notice the products all say "Designed by Apple in California"? The super liberal state is where the mouse was invented. It's where Intel, Oracle, Facebook, Google, Tesla, and Pixar are.

The 'liberalness' of it has nothing to do with it.
These companies are in the valley because that is where they started.
They stated there back in the day because it was near Stanford and US Berkeley.
It has nothing to do with the state being liberal.

Quote:
Texas has an authoritarian culture that results in companies that don't think outside the box, like Dell or Compaq. It's fine for a call center or an accounting services hub, but not for hardware design or software development of the kind Apple does.

Huh? It is progressive policies that are authoritarian.
Restricting state regulation of medical marijuana? Progressive policy enacted by the expansion of the commerce clause user the king daddy progressive FDR.

Requiring a private citizen to buy a private product with private funds from a private sector company for private use or face possible jail time? Sounds pretty authoritarian to me.

Telling fast food companies they cannot buy a top in fast food meals?

Telling individuals they cannot have the choice to get a plastic bag even if they recycle them and/or reused them in their homes?

Quote:
So if you are really so right-wing as you sound, you need to come to terms with the fact that Apple is the product of a liberal culture, and try to figure out why that might be. If you like Apple, maybe you need to drop some of your prejudices and let out your inner liberal...

LOL
post #30 of 90
Quote:
Originally Posted by jragosta View Post

Yep. Right on cue.

Sorry, but I don't see how "if you spend $304 M create thousands of jobs, and pay many millions of dollars in taxes, we'll give you back $2.1 M per year for 10 years" constitutes taking a state handout.

I don't know how the US system works. Does a company like Apple pay state or federal taxes? If they make $50bn in sales across the US do they still pay all their company tax in California?
post #31 of 90
Quote:
Originally Posted by Alonso Perez View Post

That super liberal state is attractive to the kind of open-minded people who develop new ideas. Ever notice the products all say "Designed by Apple in California"? The super liberal state is where the mouse was invented. It's where Intel, Oracle, Facebook, Google, Tesla, and Pixar are.

Texas has an authoritarian culture that results in companies that don't think outside the box, like Dell or Compaq. It's fine for a call center or an accounting services hub, but not for hardware design or software development of the kind Apple does.

So if you are really so right-wing as you sound, you need to come to terms with the fact that Apple is the product of a liberal culture, and try to figure out why that might be. If you like Apple, maybe you need to drop some of your prejudices and let out your inner liberal...

California was NOT "super liberal" when most of those companies started, and a lot of the high tech business development in the region has more to do with the fact that there's already a critical mass of talent living and working in the area, rather than the liberal wacko policies of the state.

The important point of this story is that California is losing another big round of job creation to other states...jobs that have good reason to stay in California. The state is teetering on the edge of bankruptcy, far more companies are leaving the state than are coming in (CA is consistently rated one of the worst climates for business in the country) and yet the liberal wacko legislature can only bring itself to raise taxes further, rather than cutting down the government's size.

Pretty soon we're going to reach a tipping point, where California can't borrow any more money to pay for all its spending or rely on federal bailouts, and then we'll see what the real product of a liberal culture looks like.
post #32 of 90
Quote:
Originally Posted by rednival View Post

Sounds like a big call center. It is their decision to make, but it would have been nice to see another commitment from Apple to build something like this in another rural community.

Putting a data center in a rural area is not very difficult - you only need a small staff. Putting a customer service and accounting center there is much more difficult, as it is hard to staff. I.e. Getting 3600 accountants, sales, etc... people to move to Austin (or who already live there) is much easier than convincing 3600 people to move to a town of 3300 in the middle of nowhere...

I have nothing against small towns, but the fact is staffing tends to be much easier in cities and Austin has a big talent pool to draw from.
post #33 of 90
Quote:
Originally Posted by Patranus View Post

Huh?
Whats not to like about Taxes.

I live in Texas, so let me address your statements.

Quote:
Pretty much no taxes.

No income tax, but very high property taxes.

Quote:
People are polite and have manners.

Some are polite, others are raving lunatics. Pretty much like most places.

Quote:
Government leaves you alone more less.

Except when they make intrusive laws like the sonogram requirement for abortions that mandates a medically unnecessary procedure against the will of the doctor and patient.

Quote:
The legislature is only part time so they don't see the need to pass frivolous laws to make it seem like they are busy.

See previous response.

Quote:
You have the right to protect yourself, your family, and your property.

Just like every other place in the US.
post #34 of 90
Quote:
Originally Posted by k2director View Post

California was NOT "super liberal" when most of those companies started,

However, those companies were mostly started by young college grads during a time of extreme liberal upsurge in popular culture, music, science, art, creativity and writing, which was born from a subculture that had very little to do with any political leaning one way or the other. Predominately, young people at the time, were philosophically opposed to all forms of government.

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post #35 of 90
Quote:
Originally Posted by Patranus View Post

Requiring a private citizen to buy a private product with private funds from a private sector company for private use or face possible jail time? Sounds pretty authoritarian to me.

An idea first proposed by the conservative Heritage Foundation and first implemented by Republican Governor Mitt Romney!

Quote:
Telling individuals they cannot have the choice to get a plastic bag even if they recycle them and/or reused them in their homes?

While we're at it, what right does government have to keep individuals from dumping pollutants into the nearest river? WHY DO THEY HATE FREEDOM?!?!?!
post #36 of 90
Definitely a win-win situation for Apple and Texas. Kudos to Rick Perry for continuing to create a hospitable environment for job growth. Regardless of what the mainstream media's attempted brainwashing to the contrary.
post #37 of 90
Quote:
Originally Posted by JollyPaul View Post

Some are polite, others are raving lunatics. Pretty much like most places.

This is the South. And we're proud of our crazy people. We don't hide them up in the attic, we bring them right down to the living room and show them off. No one in the South ask IF you have crazy people in your family, they just ask which side they're on. - Julia Sugarbaker,

Sorry, this just reminded me of that scene in Designing Women. Carry on.
post #38 of 90
Quote:
Originally Posted by zBernie View Post

Definitely a win-win situation for Apple and Texas. Kudos to Rick Perry for continuing to create a hospitable environment for job growth. Regardless of what the mainstream media's attempted brainwashing to the contrary.

People in Austin and Travis County apparently did not vote for him nearly as much as the state of Texas as a whole.

Here is some interesting reading regarding many comparisons including education, income and political affiliations.

http://www.city-data.com/city/Austin-Texas.html

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post #39 of 90
Quote:
Originally Posted by Patranus View Post

The 'liberalness' of it has nothing to do with it.
These companies are in the valley because that is where they started.

They stated there back in the day because it was near Stanford and US Berkeley.
It has nothing to do with the state being liberal...

Oh, and I thought a university education was for snobs and liberal elitism, and that Berkely in particular was a hotbed of communism, and so on. If I had a dime for every conservative insult for universities of that kind that I've seen, I'd be richer than Romney.

It's really funny you think being next to Stamford and Berkeley is unrelated to "liberalness". Even the man himself declared Apple to be at the crossroads of Liberal Arts and Technology.

If it's just a coincidence, why not Texas A&M? It's all the same right? No, it's not.

But I am not being generous with Texas. They do have creative companies. really! Look at how creative Enron was. Too bad it was creative at coming up with ways to cheat people, and states, like California, out of billions of dollars.
post #40 of 90
Quote:
Originally Posted by Shaun, UK View Post

I don't know how the US system works. Does a company like Apple pay state or federal taxes? If they make $50bn in sales across the US do they still pay all their company tax in California?

It depends.

Federal corporate income tax - doesn't matter where it's paid
State corporate income tax - paid by each separate corporate entity. If Apple creates (or already has) a separate subsidiary in TX, then that subsidiary would pay state income tax (if any)
Property tax - paid to the area where the property is located (this is a big one for TX)
Wage taxes and employee income taxes - paid where the employee works (usually)
Sales taxes - paid in the state where the item was purchased or sold
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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