Apple to build $1B campus in Austin, increase employment nationwide

Posted:
in General Discussion edited December 2018
Alongside the Texas campus, the company plans new or expanded sites in Seattle, Pittsburgh, Colorado and more over the next three years.

Workers at Apple's Reno, Nevada data center
Workers at Apple's Reno, Nevada data center


Apple is spending $1 billion to build a new campus for engineering, research and customer support in Austin and is doing so as part of U.S.-wide expansion plans. The new 133-acre campus will initially house 5,000 new staff and together with Austin's existing 6,200 Apple employees is expected to make the company the largest private employer in the city.

"Talent, creativity and tomorrow's breakthrough ideas aren't limited by region or zip code," said Apple CEO Tim Cook. "Apple is proud to bring new investment to cities across the United States and significantly deep our quarter-century partnership with the city and people of Austin. And with this new expansion, we're redoubling our commitment to cultivating the high-tech sector and workforce nationwide."

The new Austin campus, situated a mile from the current one, will continue Apple's policy of being powered by 100 percent renewable energy. In addition to a building ultimately able to house 15,000 people, the site will also feature 50 acres of preserved open space.

Alongside the Austin campus, Apple announced that over the next three years it is planning to enlarge workforces in Seattle, San Diego and Culver City to over 1,000 employees each. It's also intending to expand existing facilities in Boulder, Colo., as well as Boston, New York, Pittsburgh and Portland, Ore.

Apple's projected US employment by 2022 (Credit: Apple)
Apple's projected US employment by 2022 (Credit: Apple)


Apple currently employs 90,000 people across all 50 states, including 6,000 who have been added this year. This year's new hires are part of a five-year plan to add 20,000 jobs in America and contribute $350 billion to the economy.

These figures are to do with direct spending by Apple but the company claims that its work is also enabling a much wider indirect impact on American employment. In all, Apple says it is responsible for the creation and support of two million jobs in the U.S. including employees at some 9,000 supply firms and 1.5 million jobs related to the App Store.

"Apple is among the world's most innovative companies and an avid creator of jobs in Texas and across the country," said Texas Governor Greg Abbot. "Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers."

Apple also announced plans to invest $10 billion in data centers across the U.S. in a program due to take five years. Presently the existing data centers in North Carolina, Arizona and Nevada are being expanded while a new one is being planned for Waukee, Iowa.

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Comments

  • Reply 1 of 21
    I imagine many of these new domestic operations will support Foxconn’s new factories being constructed in multiple states. Factories filled with robotic assembly platforms can be located and run from the USA better than almost anywhere else. Foxconn robots replace about 2/3rds of the labor associated with assembling an iPhone, and those robots cost less than the one-year wage of a Chinese worker.
    watto_cobra
  • Reply 2 of 21
    bwikbwik Posts: 562member
    Let's assume Apple revenue declines 5% per year for the next 10 years.  Now how much employment growth will there be?

    Even expecting the current revenue level 10 years out is a massive task for Apple.  It is far from certain.
    cornchipwilliamlondon
  • Reply 3 of 21
    bwik said:
    Let's assume Apple revenue declines 5% per year for the next 10 years.  Now how much employment growth will there be?

    Even expecting the current revenue level 10 years out is a massive task for Apple.  It is far from certain.
    Apple has a much better track record in forecasting their growth than Wall Street anal-ysts. The quarterly results usually come in between the range of numbers Apple forecast at the previous quarterly investor’s phone call. When quarterly results have disappointed, it’s when they fall short of Wall Street expectations that were too high. It’s pretty amazing how accurate their forecasts are considering the volume they produce and the whims of consumers. 

    Tim Cook was widely considered a supply chain genius when he was brought in to Apple. He and his team have shown a masterly command of orchestrating unprecedented volumes of production of complex products. 

    Apple is in the process of building a third campus near the current two main campuses. It’s been discussed by people familiar with Apple expansion in that area, that Apple is planning a fourth campus at an already owned property. 

    That and the announcement of the Austin expansion with more expansion to come, is a sign to me that they know they need an expanded capacity for future business.  

    Since new product pipelines can be five or more years, I believe there are products and services that we do not know about, but increased business from them are related to the expansion of workspace and workforce. Keep in mind Apple considers themselves to be a design company. The long pipeline is design driven.

    I do hope the doom and gloom folks have egg on their faces with the next quarterly report.

    Stantheman—these expansions are not Foxconn related.  Foxconn has made their own announcements, not Apple.

    StrangeDaysrandominternetpersonwatto_cobrawilliamlondon
  • Reply 4 of 21
    Glad to hear it!  Austin is perfect for Apple and Apple is perfect for Austin.  More jobs, more ideas, and more innovation is never a bad thing.  I trust Apple leadership to not throw money away and they must see a path to a positive ROI in these new campuses, and will continue to trust them until they show me a reason not to. 
    watto_cobra
  • Reply 5 of 21
    Maybe I can get my old job back on 183 or at the new campus. Hmm..
    watto_cobra
  • Reply 6 of 21
    So much for Texas and Austin being “affordable” once the California effect of all these new tech giants and west coast ex-pats move in. 
    edited December 2018
  • Reply 7 of 21
    dewmedewme Posts: 2,094member
    This is good news. I have nothing against CA but adding more geographic diversity to Apple's footprint can only be viewed as a good thing for both Apple and its current and future employees. There's nothing that works better to dilute the us-vs-them mentality than to make more of the "us" part of the "them" and vice versa.
  • Reply 8 of 21
    irelandireland Posts: 17,616member
    The 1.5 million jobs related to the app store is a bullshit figure. Did they ever say how much is the minimum a dev is to earn before Apple counts them toward one of those jobs? $5 per month is not a job. The number sounds fishy and disingenuous.
    edited December 2018 williamlondon
  • Reply 9 of 21
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.
    airnerdphilboogiewilliamlondon
  • Reply 10 of 21
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.

    Austin is more like California than Texas.
    randominternetpersonwilliamlondon
  • Reply 11 of 21
    ireland said:
    The 1.5 million jobs related to the app store is a bullshit figure. Did they ever say how much is the minimum a dev is to earn before Apple counts them toward one of those jobs? $5 per month is not a job. The number sounds fishy and disingenuous.
    I've never seen one of these "economic impact" analyses that wasn't grossly inflated.  No one takes these numbers seriously.  They go from corporations (or industries) to politicians to provide political cover for whatever someone wants to do.  Want to change investment rules for trains?  Watch out for the ads talking about how impactful the rail system is for the US economy.  Rinse and repeat for any other company or industry subject to regulation or subsidies.
  • Reply 12 of 21
    So it looks like RTP in NC lost out. Wonder why?
  • Reply 13 of 21
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.
    Yes, you've made your political position quite clear. I don't understand how Apple would benefit, nor I as its customer, if more of its employees drive pickup trucks with rifle racks though. What does the progressive climate in California have to do with Apple's business?
    roundaboutnowwilliamlondon
  • Reply 14 of 21
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.

    Austin is more like California than Texas.
    From a people point of view, you are correct.  From a regulatory point of view, Texas law still takes precedent over most of the recently initiated craziness.
    williamlondon
  • Reply 15 of 21
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.
    Yes, you've made your political position quite clear. I don't understand how Apple would benefit, nor I as its customer, if more of its employees drive pickup trucks with rifle racks though. What does the progressive climate in California have to do with Apple's business?
    1) I love it when people make it abundantly clear that they have never ventured into Texas and rely on 80's dramas and jokes to form their opinion on the place. 
    2) If you can't understand how state regulations, as well as corporate taxation laws + cost of living can impact a companies business then I'm not sure anyone here has the time to teach you.  
    williamlondon
  • Reply 16 of 21
    airnerd said:
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.
    Yes, you've made your political position quite clear. I don't understand how Apple would benefit, nor I as its customer, if more of its employees drive pickup trucks with rifle racks though. What does the progressive climate in California have to do with Apple's business?
    1) I love it when people make it abundantly clear that they have never ventured into Texas and rely on 80's dramas and jokes to form their opinion on the place. 
    2) If you can't understand how state regulations, as well as corporate taxation laws + cost of living can impact a companies business then I'm not sure anyone here has the time to teach you.  
    I wasn't referring to Texas, or any other specific place. I was responding to a generalized statement about California being "philosophically isolated."

    The person to whom I was responding said nothing about business conditions, he referred to his perception of prevailing mindsets in California. He has recently stated support for a conservative nationalist agenda, so my response here was to suggest his concern about California may not be about business conditions but fear of touching a computer infested with liberal cooties. It was pointed humor.

    I don't know what you're up in arms about though, as the article clearly specifies several locations into which Apple plans to expand and I didn't reference any particular location.
    roundaboutnow
  • Reply 17 of 21
    mf2kmf2k Posts: 11member
    The only presence that Apple has in Boulder, CO is an Apple store. But this article implies it is "expanding" its presence in Boulder. I wonder if the new site in Denver is getting confused with the existing store in Boulder? 
  • Reply 18 of 21
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.
    I agree. The more Californians that move to Texas the better. When Texas turns blue, no republican will ever win the presidency again. Beto lost Texas by only 2.5 points!

    unless you think that tech workers will vote republican? Doubtful. Texas, Arizona, and Nevada republicans are shooting themselves in the foot by inviting all these businesses like Tesla, Google, Apple, etc.  in.
    edited December 2018
  • Reply 19 of 21
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.
    Yes, you've made your political position quite clear. I don't understand how Apple would benefit, nor I as its customer, if more of its employees drive pickup trucks with rifle racks though. What does the progressive climate in California have to do with Apple's business?
    Understanding customers helps to ensure Apple will be able to deliver what those customers want.

    Remember the origins of the Sony Walkman? Designers from Sony observed the lifestyle of Californians at the beach and wondered if they could create a portable tape player that one could wear. A simple insight, but if the Sony observation had never been made, the Walkman may have never been created.
    williamlondon
  • Reply 20 of 21
    Apple needs to start to migrate more of their core people out of California and have them work in states that are not so philosophically isolated from the rest of the country.
    Yes, you've made your political position quite clear. I don't understand how Apple would benefit, nor I as its customer, if more of its employees drive pickup trucks with rifle racks though. What does the progressive climate in California have to do with Apple's business?
    Understanding customers helps to ensure Apple will be able to deliver what those customers want.

    Remember the origins of the Sony Walkman? Designers from Sony observed the lifestyle of Californians at the beach and wondered if they could create a portable tape player that one could wear. A simple insight, but if the Sony observation had never been made, the Walkman may have never been created.
    Okay, I understand now, thanks. I suspect that kind of situational epiphany is pretty rare though, and modern market research probably makes headquarters locations largely irrelevant. I could be wrong, though. It's been known to happen from time to all the time.
    SpamSandwich
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