Print 24 comment(s) - last by gpoly.. on Apr 7 at 5:57 AM

It went from less than $3 billion in 2011 to nearly $5 billion now

Former Apple CEO Steve Jobs wanted Apple's huge, second campus to be built by 2015, but issues with going way over budget has tacked on an extra year to the completion date. 

Back in June 2011, Jobs presented plans for Apple's new corporate building before the Cupertino City Council. It looked like a spaceship, and was capable of holding 12,000 employees. 

The plans consisted of a 2.8 million square foot campus with 176 acres of trees (adding 6,000 trees total). There were curved exterior walls and 40-foot panes of concave glass from the floor to the ceiling. 

At that time, the budget was a little under $3 billion. Jobs wanted to break ground in 2012 and have the Apple spaceship complete by 2015. 

However, the budget has since grown to nearly $5 billion today, and the company doesn't plan to start building until June. The project likely won't be complete until 2016. 

What's causing the delay? Apple is taking a little extra time to cut down that giant budget, which has ballooned since initial plans went through.

Apple is currently working with architect Foster + Partners to chop about $1 billion from the budget before going any further. Apple had hired Norman Foster’s firm back in 2010 when plans were just begining. Apple's general contractor is a joint venture of DPR Construction (Redwood City, California) and Skanska USA Building (New York).

But the company still needs to work out agreements with several other subcontractors in order to begin. Contractors will be submitting bids by May of this year. 

Despite having $137 billion in the bank, Apple is likely looking to cut the budget a bit because its shares have fallen 38 percent since its high of $700 per share in September 2012. Also, competitors like Samsung are making a huge splash in the mobile market with high-tech smartphones and tablets that rival the iPhone/iPad in price, design and functionality.

Investors aren't too happy with the $5 billion budget, either. 

“This is rubbing salt in the wound, to spend at a level that most anyone would say is extravagant, at a time when they’re being so stingy on dividends," said Keith Goddard, the chief executive of Tulsa-based Capital Advisors, which owns 30,537 shares of Apple. "This headquarters would perpetuate the negative story.”

Samsung recently announced that it plans to top Apple's spaceship headquarters by building a $300 million green campus, which will be placed in San Jose, California. It will feature a 1.1 million square foot campus with sports courts, cafes and gardens. Even the design is interesting, with alternating layers of larger and smaller floors to give a ridged appearance to the building.

Source: BusinessWeek

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RE: When?
By Neodude007 on 4/4/2013 2:09:49 PM , Rating: 3
I never understood all those arguments we have all seen regarding who came out with what and what (AKA who invented product or feature X). Who really cares... are we arguing about who invented cars today? Because I see a lot of car brands. Who gets the credit? Answer: Nobody cares, just make your product and improve upon it. That is all... think about it. Who invented rectangular flat touch screen phones, who invented widgets, retina display, who first used NFC, IT JUST DOES NOT MATTER. In reality these are all small gimmicky features that all add up to a product... a phone which is now pretty much a ubiquitous device that always has almost the exact same features as the next phone (like cars do now).

Nerd: My phone made by ABC company came out with X first.

Normal person: Well my phone made by XYZ does that too. I don't care who did what first because my phone does it just like yours so what is the difference to me as a consumer? Nothing.

RE: When?
By Nortel on 4/4/13, Rating: 0
RE: When?
By Neodude007 on 4/4/2013 2:44:20 PM , Rating: 1
I wasn't really getting in to patents per se, more general things which is why I brought up cars. One car maker MUST have been "first" using in-dash GPS units. Yay for them, now they all do. That is my point. Some people nit pick as to who did or used what first and it simply doesn't matter. You could even call that "innovation" but at the end of the day myself, as a consumer, doesn't care about WHO innovated something first as long as my device I'm buying can do it.

RE: When?
By lelias2k on 4/4/2013 3:20:44 PM , Rating: 2
I suggest you get more familiar with how patents really work, don't just judge by what you read on the press about the lawsuits.

RE: When?
By retrospooty on 4/4/2013 2:49:27 PM , Rating: 2
In your example, Apple didn't invent the widget... They copied it, improved upon it (like all companies do) and then sued as if they invented it.

It's not a strange attitude at all, what Apple does is called Hippocracy. What its all about isnt who invented and copied what, because all companies do that. Its about who makes the best product at the right price.

Before you say anything else about Apple being copied, dont forget where Apple cot the idea for the smartphone from, as well as the smartwatch that was on the market 10 years ago.

RE: When?
By xti on 4/4/2013 3:39:25 PM , Rating: 3
if anything, the strange attitude is just everyone so awkwardly passionate about wasnt your cousin getting sued it was a corp.

and then everyone acts surprised that corporations do the best thing for their stock price and not "the right thing" or some crap.

RE: When?
By BRB29 on 4/5/2013 8:14:48 AM , Rating: 2
Patent protection only last 20 years.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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