AP­PLE DEEP­ENS AUSTIN TIES, EX­PANDS OP­ER­A­TIONS EAST AND WEST

Techlife News - - Summary -

Ap­ple will build a $1 bil­lion cam­pus in Austin, Texas, break ground on smaller lo­ca­tions in Seat­tle, San Diego and Cul­ver City, Cal­i­for­nia, and over the next three years ex­pand in Pitts­burgh, New York and Colorado.

The tech gi­ant said that the new cam­pus in Austin, less than a mile from ex­ist­ing Ap­ple fa­cil­i­ties, will open with 5,000 po­si­tions in en­gi­neer­ing, re­search and de­vel­op­ment, op­er­a­tions, fi­nance, sales and cus­tomer sup­port. The site, ac­cord­ing to Ap­ple, will have the ca­pac­ity to even­tu­ally ac­com­mo­date 15,000 em­ploy­ees.

The three other new lo­ca­tions will have more than 1,000 em­ploy­ees each.

Early this year, Ap­ple said that it would make more than $30 bil­lion in cap­i­tal ex­pen­di­tures in the U.S. over the next five years. That, the

com­pany said in Jan­uary, would cre­ate more than 20,000 new jobs at ex­ist­ing and new cam­puses that Ap­ple planned to build.

Where U.S. com­pa­nies open new fa­cil­i­ties or plants has al­ways had the po­ten­tial for pub­lic and po­lit­i­cal back­lash.

That po­ten­tial has in­ten­si­fied un­der the Trump ad­min­is­tra­tion, which has pushed com­pa­nies to keep more of their op­er­a­tions in­side the coun­try’s bor­ders.

While CEO Tim Cook has steered mostly clear Pres­i­dent Don­ald Trump’s ire, Ap­ple did re­ceive some push back three months ago from the White House.

Ap­ple sent a let­ter to the U.S. trade rep­re­sen­ta­tive warn­ing that the bur­geon­ing trade war with China and ris­ing tar­iffs could force higher prices for U.S. con­sumers.

Trump in a tweet told Ap­ple to start mak­ing its prod­ucts in the U.S., and not China.

Ap­ple uses a lot of fa­cil­i­ties over­seas to pro­duce com­po­nents and its prod­ucts, in­clud­ing China.

Top tech ex­ec­u­tives from Google, Mi­crosoft, IBM, Or­a­cle and Qual­comm gath­ered at the White House ear­lier this month to dis­cuss strained ties be­tween the ad­min­is­tra­tion and the in­dus­try, and trade ten­sions with China. Cook was not among them, nor was Ama­zon’s Jeff Be­zos.

There are al­ready 6,000 Ap­ple em­ploy­ees in Austin, its largest op­er­a­tion out­side of com­pany head­quar­ters in Cu­per­tino, Cal­i­for­nia, where 37,000 peo­ple are em­ployed.

“Ap­ple has been a vi­tal part of the Austin com­mu­nity for a quar­ter cen­tury, and we are thrilled that they are deep­en­ing their in­vest­ment

in our peo­ple and the city we love,” said Austin Mayor Steve Adler in a pre­pared state­ment.

Ap­ple said nearly a year ago that it would be­gin can­vass­ing the U.S. for an­other cam­pus.

Cities of­fered in­cen­tives to lure the com­pany, but Cook avoided a high-pro­file com­pe­ti­tion that pit­ted them against one an­other as Ama­zon did over the last year and a half.

Ama­zon an­nounced in Novem­ber af­ter a 14-month search it had se­lected Long Is­land City, Queens, and Ar­ling­ton, Vir­ginia, as the joint win­ners. Each site will em­ploy around 25,000 peo­ple.

Cities are ea­ger to bring in more tech em­ploy­ers be­cause com­pa­nies like Ap­ple and Ama­zon la­dle out six-fig­ure salaries to en­gi­neers and other skilled work­ers.

The in­fu­sion of thou­sands of new and highly paid res­i­dents can rip­ple through an econ­omy, with those em­ploy­ees fill­ing res­tau­rants, the­aters, buy­ing prop­erty and pay­ing taxes.

An­nual pay will vary at the new lo­ca­tions, but Ap­ple work­ers in Cu­per­tino have an av­er­age an­nual salary of about $125,000, ac­cord­ing to a re­port the com­pany sub­mit­ted to the city.

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