Apple to add 1,200 employees in Qualcomm’s backyard

“Apple announced Wednesday it is bringing 1,200 employees to a San Diego office over the next three years, growing its presence right in the backyard of its current legal rival Qualcomm,” Lauren Feiner reports for CNBC.

Reuters reported last month that Apple has moved its modem chip engineering team from its supply chain unit into its in-house hardware technology group, suggesting it could be looking to bring a component it used to buy from Qualcomm into its own facilities,” Feiner reports. “Apple recently stopped using modems made by Qualcomm and switched to Intel chips instead.”

Feiner reports, “Apple has recently begun posting dozens of positions relating to designing cellular modems and integrated application processors, according to EE Times.”

Read more in the full article here.

MacDailyNews Note: Mayor Faulconer’s office has posted a press release regarding Apple’s epansion. Here it is, verbatim:

Mayor Faulconer, Apple Partner to Grow Company’s Presence in San Diego

Apple Cites San Diego’s Quality of Life and Economy as it Plans to Add 1,200 Local Jobs, Make City a Main Engineering Hub

San Diego – Mayor Kevin L. Faulconer, Apple Vice President Kristina Raspe and regional leaders announced today that the technology company will increase its employment in San Diego by an additional 20 percent over previously announced numbers.

Apple now plans to add 1,200 employees in San Diego within the next three years, with almost 200 of those employees in place by the end of the year. As part of a nationwide expansion, Apple announced in December that it would establish a new site and job opportunities in San Diego.

“Apple has been a part of San Diego for nearly 20 years through our retail presence and small, fast-growing teams – and with this new investment we are proud to play an even greater part in the city’s future,” said Tim Cook, Apple CEO. “You don’t have to try too hard to convince people that San Diego is a great place to live, work and do business, and we’re confident our employees will have a great home among the community there.”

Apple cited San Diego’s successful efforts to diversify its economy, incubate new industries, broaden its talent pool, build partnerships between academia and the business community, and maintain a superb quality of life as reasons for its expansion to America’s Finest City.

“There isn’t a city in the U.S. that can offer the talent, infrastructure and community that San Diego can,” said Mayor Faulconer. “I invited Apple to increase its growth in San Diego, and on behalf of a grateful city we’re delighted they accepted our invitation. Apple’s inventions have literally changed the world, revolutionizing how we communicate, create, do business and learn. As Apple continues to innovate and introduce new products, we will be proud to say that San Diego is a part of it.”

Apple and Mayor Faulconer met over recent weeks to discuss the company’s growth plans.

“We were excited to announce in December that we planned to grow our presence here and add one thousand jobs, and then Mayor Faulconer and members of his team very thoughtfully and convincingly walked us through everything the San Diego region has to offer,” said Kristina Raspe, Apple Vice President of Global Real Estate and Facilities. “So we went back and sharpened our pencils and increased our investment.”

San Diego will become a principle engineering hub for Apple with new positions distributed across a number of specialty engineering fields, to include both hardware and software technologies. While Apple hasn’t yet settled on a location, plans are also underway to develop a campus that will feature hundreds of thousands of square feet of office, lab and research space.

“Apple – with its vision, its brand and its products – could make a home anywhere across the globe,” said San Diego Regional Economic Development Corporation Chair Janice Brown. “By selecting San Diego, they are showing that they value a place that prioritizes a rich talent pool, inclusive economy, and commitment to changing the world for the better.”

In addition to its corporate and retail presence, Apple’s app ecosystem contributes to the San Diego economy. App developers who call San Diego home create products that reach customers around the world.

“Apple’s decision to increase the company’s presence in San Diego is a testament to the strong, talented workforce and intellectual capital we have in the region,” said Jerry Sanders, President and CEO of the San Diego Regional Chamber of Commerce. “We look forward to the opportunities this investment brings for our entire region and the role San Diego will play in the future of Apple.”

Apple Fashion Valley, opened in 2001, was the company’s 21st store in the world. Apple currently employs 600 retail employees at its five stores in the region.

The company’s local teams over the years have helped support a number of organizations in San Diego, including the Jacobs & Cushman San Diego Food Bank, Make-A-Wish San Diego, San Diego Humane Society, American Cancer Society, Zoological Society of San Diego, Cards for Kidz NFP, Braille Institute San Diego Center, and Challenged Athletes Foundation.

Source: Office of Mayor Kevin L. Faulconer

4 Comments

  1. I’d like to see Apple go up against Qualcomm in baseband modem tech, but I’m not certain Apple would gain all that much if they don’t license those modems to other companies as Qualcomm does. I keep thinking if Apple were able to sell its A-series processors to other companies (in the server space), how much more money Apple would be able to make. Any cellular/baseband modems Apple designs will have to at least be on par with what Qualcomm offers in terms of speed and efficiency. I think it will be tough for Apple to take away market share from Qualcomm, but that’s just a gut feeling based on Qualcomm being in the cellular/modem business for such a long time. Qualcomm is only worth about $66B overall but it still has a tight grip on Apple’s throat.

    It’s unfortunate, with declining iPhone sales Apple is getting less bang for the buck with their A-series processors. R&D costs will remain high but declining sales of products using those processors will cause Apple to have declining profits. I’m in favor of Apple doing in-house development of components, but it will probably be quite costly with no guarantee of worthwhile financial returns.

    1. I doubt that Apple business plan calls for taking market shares away from Q in a direct way. It would reduce Q’s shares simply by not using Q’s modems. And I hope that Apple is not thinking of this is a mere money maker because, it it does, it would signify a downgrading of SJ’s vision of making delightful products. And I doubt that Apple wants to transform itself, in part, as a parts supplier to its competitors.

  2. I dunno. If they will be new hires, then it sounds like Microsoft-style bloat to me. I already dread the day when Apple will become much bigger, fatter, slower, lazier, and less crazy. I trace the start toward this decline when it decided to cater to the internal needs of Oracle, IBM, and others with its iPad apps because, Cook, or was it Jobs too, felt a need to expand its base.

    MAGA: Make Apple Great Again.

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