“Steve Jobs would have immediately fired anyone for suggesting such sacrilege, but current Apple CEO Tim Cook may have have other ideas,” Mark Reschke writes for T-GAAP. “As the state of California continues on a path toward bankruptcy, the California legislature is desperate to increase revenues. Their plan has been to raise taxes, which has driven California companies to change locations in search of friendlier business environments. In addition, having a world campus located along a major fault line is no bonus either, nor is the traffic, nor the amazingly high salaries tech companies must pay to obtain — and retain — great talent in silicon valley.”
“Texas sits on the other end of the spectrum from California. The Government is stable and flush with cash, tax rates are much lower, and the cost of living is relatively cheap when compared to California,” Reschke writes. “Apple’s operating costs in Texas would run tens of millions less than continuing to operate a its headquarters in Cupertino. And that is not a one time cost savings but would occur year after year.”
Reschke writes, “Watch how the Spaceship campus in Cupertino progresses (or perhaps does not progress) and at the same time how Apple’ Austin campus continues to grow. Over the next few years Apple’s direction may be more than just an opportunistic idea.”
Read more in the full article here.
MacDailyNews Take: Well, the thought of Austinite Michael Dell being unable to move 3 feet without bumping into an Apple employee is rather delicious.
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Apple breaks ground on 39-acre, 1-million-square-foot Austin, Texas campus – December 19, 2012
Travis County approves tax incentives for Apple’s Austin campus expansion – May 2, 2012
Austin city council unanimously approves $8.6 million dollars in incentives for Apple Inc. – March 23, 2012
Texas Governor Rick Perry announces Apple to invest $304 million, create 3,600 new jobs in Austin – March 9, 2012
Apple eliminates 174 positions from Elk Grove, California; transfers work to Austin, Texas – May 1, 2008