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Apple's new HQ $2 billion over budget - report

Apple's new HQ $2 billion over budget - report

Thu 04 Apr 2013 1:47pm GMT / 9:47am EDT / 6:47am PDT
Mobile

Spiralling cost of Campus 2 could be a headache for investors

Apple

Established in 1976, Apple is a multinational corporation (corporate headquarters based in California)...

apple.com

Apple's hugely ambitious new headquarters, Campus 2, is running around $2 billion over its $3 billion budget.

According to a report on Bloomberg Businessweek, which cites five inside sources, the cost of the vast office building in Cupertino has spiralled since Steve Jobs submitted the plans to the city council in 2011. If the consensus estimate of the sources is accurate, Campus 2 will be at least $1 billion more expensive than the new World Trade Center complex being built in New York City.

However, Apple recently pushed back its move-in date from 2015 to 2016, allegedly due to late meetings with the lead architect, Foster + Partners, about slashing $1 billion from the budget. Apple would not comment on any of the leaked figures.

If correct, however, the ostentatious details of Campus 2 may not be welcomed by Apple's shareholders, some of whom have expressed their disapproval at the company's reluctance to share its $137 billion cash reserve in dividends. One Apple shareholder told Bloomberg that the cost of Campus 2 would be, "rubbing salt in the wound."

If all goes according to Jobs' initial plans, Campus 2 will be a single, four-story, ring-shaped office building, large enough to house more than 12,000 employees and set among 176 acres of trees. Every pane of the 6 square kilometres of glass required will be curved, and the roof will be composed of 700,000 square-feet of solar panels, with the ultimate goal being a completely self-sufficient environment. Apple will plant 6,000 trees from more than 300 species on the land, which, at present, is covered in asphalt car-parks.

When Steve Jobs presented the plans to Cupertino City Council in 2011, he said, "we have a shot at building the best office building in the world. I really do think that architecture students will come here to see it."

9 Comments

Paul Johnson Managing Director / Lead code monkey, Rubicon Development

887 1,314 1.5
A billion here, a billion there. Pretty soon you're talking real money.

Posted:A year ago

#1
Cutting edge architecture done on a scale sufficient to cater to needs of Apple simply isn't cheap, indeed if it was it wouldn't be worth doing, if a company that large and successful, one that had a net income of 41.7 billion usd in 2012, if such a company at its height cant afford to spent a few bill on its own headquarters, something which the company will be benefited from for decades to come, potentially centuries if its done right, which it appears to be doing ( not to mention creative minds benefit from creative atmospheres and if that place don't do it for you, it'll be likely because you aren't creative) then there would simply be something wrong with capitalism :D, and like all big projects by big organisations, it suffered from under-estimation of costs, for same reasons government projects usually end up at triple the budget, if on a smaller scale, everyone involved figured they can afford it, and frankly most vast projects cost more than supposedly expected they should expect to may more than the initial plan indicated as a matter of course.

Edited 4 times. Last edit by Alexander McConnell on 5th April 2013 12:06am

Posted:A year ago

#2

Adam Campbell Associate Producer, Miniclip Ltd

1,180 967 0.8
Cool story bro...

Posted:A year ago

#3

Andrew Watson Programmer

98 244 2.5
I hope they have something that lets you quickly get from one side of the building to the opposite one!

Posted:A year ago

#4

Private Industry

1,176 182 0.2
1 year later they will build the iHQ 2 with clearer windows and improved chairs :)

Posted:A year ago

#5

Joshua Rose Executive Producer / Lead Designer, Storm Eagle Studios

191 81 0.4
MONORAIL!!!

They must have a monorail that circles the outside of the facility and just spend the whole day running circles around the whole facility.

Or... even better, the monorail goes in a spiral around the outside of the facility to cover each level. Then when it gets to the top, it makes a loop around the whole exterior of the facility to give an outside view as it slowly descends back to the ground floor to start the circuit over again. The spiral up kinda reminds me of the Midgar train from FF7.

So what if it cost a couple extra billion... don't they have somewhere upward of like 80 billion in the bank or some ridiculous number with a bunch zeros?

Posted:A year ago

#6

Sam Brown Programmer, Cool Games Ltd.

235 164 0.7
with the ultimate goal being a completely self-sufficient environment
Sooo,,, every worker would spend four days at their desk and one day tilling the fields and tending the livestock in the hydroponics area? And any word on what engines this colony ship has in it?

Posted:A year ago

#7

David Serrano Freelancer

300 272 0.9
Was $3 billion the budget for construction alone, or was it for construction plus new servers, computers, communication systems, furniture, etc... ?

Posted:A year ago

#8

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