Should Apple abandon California and land their new ‘Mothership’ campus in Texas instead?

“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.

Related articles:
Steve Jobs’ ‘Mothership’ Apple campus costs have ballooned from under $3 billion to nearly $5 billion – April 4, 2013
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

164 Comments

      1. Federal Funding is mostly from Blue States. The old Confederacy gets back more than they pay in- same for the empty plains that load Congress with Republicans.

        1. You might want to double-check (or actually, finally look at) what districts in the South get the most ‘funding’.

          They are mostly poor, high in minorities, and run by Democrats.

          Go figure……

            1. I watch about 3 hours of Fox News a week (Bret Baier). I watch much more ABC and CBS. There is your first mistake.

              Second, your article has nothing to do with my point. There are poor people in all states. My point is that much of the federal aid goes to heavily Democratic controlled areas in the South. Do you assume just because a state is ‘red’ in Presidential elections it is run by Republicans? Until recently, Arkansas had mostly Democrats representing it on the federal level and a small number of Republicans on the local. It still has a Democrat governor (who I voted for), but it almost always votes Republican in the Presidential elections. Since 2008, it has swung to mostly Republican for Congress.

              Now if you want to go into a discussion on WHY most of the poor and minorities vote Democrat (but a lower percent of poor Whites) then fine, have at it.

          1. Every Southern state is currently cursed with a RepubliCON assembly in whole or part because poor white southerners living in trailers think of themselves as RepubliCONs ever since the Civil Rights and Voting Rights Acts.

            These are the geniuses that are on Medicare and Social Security that stood up at town hall meetings ranting about how they didn’t want government provided health insurance.

            1. Your name really does a disservice to intelligent people.

              Most Southern states remained in Democrat control well into the mid 1980’s, 20 years after a Southern President enacted those laws with Republican support.

              That is all very easy to research.
              Just hard on your skewed thinking.

              Maybe you should change your handle to ‘Moron Devolved’
              You know, truth in advertising and all…..

        2. Federal funding comes from all the states, that’s the point…it’s OUR money that the federal government uses to extort and blackmail states into policies the states would never approve. Spare me your Dukes Of Hazzard Economic Theories, according to my calendar the Civil War ended in 1865.

          1. The hypocritical attitude of the south is astonishing. Sates like Mississippi get back better than $2.50 per dollar sent to Washington and then elect RepibliCONs that rant about welfare, waste and pulling oneself up by the bootstrap.

            States like California get back more than 1/3rd less than they send in from a huge base- about 10% of the US population and get ragged on by the welfare states of the south.

            As to the Civil War, I have lived in the North, South & West and it is the South that still hasn’t gotten over the ass whipping the Rebels got.

  1. Who is their right mind would move from California to Texas? Our state is so much more beautiful than that backwater, scrub brush, cowpie of a state of Texas. Not to mention they have the fattest people on the planet. No wonder that state needs to be so big, so you can fit everybody. And 90% of Apple employees wouldn’t go, no way in hell.

    1. Because it’s a business.

      You see, the Oracle hears all, knows much, and can complete your sentences for you.

      The one thing the Oracle regrets is the baleful effect of unremitting anonymous, visceral, divisive political screeds. People unfulfilled in certain ways have learned to compensate through the ad hoc therapy afforded by forums like this. In so doing, however, they risk traumatizing or enraging others who are unaware of involuntary participation in a therapy program for someone they’ve never met. Apparently, they ignore or minimise these risks by dehumanizing others, easily done when staring at a forest of letters and word, on a computer screen, rather than into the eyes of someone with equal intellect but different ideas.

          1. ‘Yo Mama’ is Black slang.
            I’m using Texas bar/construction slang in a good-humored ‘up the ante’ argument.
            It generally leads to who can make the worst comebacks….or a fight.

  2. I’m not sure why any worldwide major corporation would continue to have a large number of employees in California.

    California is a great state, however, its one of the most difficult and expensive states to have employees. With a super majority of democrats in Sacramento we will like see more stories like this from other companies.

    1. Time for The True Northern California discuss again about separating it self from crazy Sacramento, the bay area, all the rest of the crazies down south. Lots of companies have already left California and more are leaving everyday. People are also leaving to save on taxes. We will be stuck with all the liberal socialist idiots and/or pot heads. God help us.

  3. Interesting and tempting, Apple.

    All the denigrating clinches and stereotypes aside — Austin is a sunny college town with an educated workforce, hip Sixth Street historic/entertainment district, authentic Tex-Mex and southern cuisine, favorable tax rates, lower cost of living compared to Infinite Loop burbs and the state is business friendly.

    “Freedom!”
    -William Wallace, Braveheart

    🙂

      1. Yeah, I forgot Austin City Limits music, and on and on …

        Thanks for the recommendation.

        To date, the best Bar-be-que I remember was in a smoky converted garage eatery just outside of downtown San Antonio.

        Not exactly the best neighborhood, but the lunchtime crowd of Lexus, Mercedes and Jag chariots did not seem to mind.

        While in Austin, a must stop is Threadgills.

  4. If Apple was smart, it would move it’s headquarters somewhere overseas where it could use its giant cash hoard to pay for it. In fact, they should buy an island nation somewhere in the Caribbean (Antigua? St, Kitt’s?), kick out all the natives (with nice relocation packages – they could all immigrate to the states to work the fields), tear down all the third world crap-ness, push it into the ocean to create new artificial habitats, terraform the place into an ecological paradise with solar and wind power, and the smartest people in the world would line up to work for them.

    So how much am I kidding?

  5. Bad move, in my opinion. Only because it would give Texas major bragging rights. Nobody needs more of what they already do to bloody excess, excuse the hell out of me.

  6. And risk loosing all the talent? I don’t think that would be smart at all. Not that Texas would be a bad place to live, but to move everyone would be impossable. The people who work there are what make the company. Besides is Apple really willing to move the new spaceship?

  7. Cook is from Alabama so Rexas was Nirvana growing up. Yet with not 1 top 25 university in the 2nd largest state while Stanford, Berkely, UCal Davis are right there for the life of me I can’t understand moving the Ivory Tower to a place where people think dinosaurs and man walked the earth together. How many Palo Altoites want to live where Dell failed? I mean its just nuts! This is the problem with capitalists. They raise the prices of land, make thousands rich then take them all away leaving an economic sinkhole. CA deserves better treatment from Apple than this and TX had Apple and it didn’t work!

  8. What unmitigated horseshit.
    1- California has balanced the state budget for the first time in a very long time under Governor Brown who went over the heads of the Republicans in the Assembly and to the ballot box.
    2- Texas balanced it’s budget through the worst of the recession with Economic Stimulus funds by using it to plug holes even as the Republican Assembly and Governor howled about the stimulus package.
    So much for the misrepresentation of the base economics.

    Texas in the aggregate is a backwater and California IS the high tech promised land. Austin and a few other places are exceptions to the rule, but on the whole it has found numerous ways to suck on the government tit over the years in ways few can match.

    If one reclaimed the Federal money poured directly and indirectly into Texas over the years the place would dry up and blow away. California, by comparison, has never taken more than it has paid in since the establishment of the Federal Income Tax. Like a lot of Blue states, it subsidizes the Red states that send Pols to Washington ranting about bootstraps.

    With climate change much of Texas will be a very dry desert in not too many years.

    1. I just love the phrase “unmitigated horseshit”. It makes me laugh!

      It brings back family memories… My grandfather employed it in the service of his political battles against labour unions, and my sainted mother unleashed the biting phrase more than once against Ronald Reagan’s critics. “He has his own mind,” she’d insist. “He’ll do the right thing.” That phrase resonates in my mind to this very day, and I think that people forget how, only a generation or two past, people could disagree on principle yet still get things done. Reagan was a man of principle, but he understood the value of compromise, and he easily formed friendships across the so-called political divide. We could all learn from his example…

  9. It would make sense for Apple to expand their R&D locations in many places besides Cupertino, but moving people from here to Texas is a very bad idea. A few companies have tried it, and it turns out that it’s not always the best employees who are willing to follow.

    -jcr

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