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Apple (NASDAQ: AAPL) continues to expand. The massive sales of iPhones and iPads have brought about an increase in employment within the Company and therefore the need to expand their office space.
A land purchase in Cupertino, California, from Hewlett Packard, has nearly doubled Apple’s land holdings in the area. There are aging buildings on the site.
The Apple workforce, worldwide, is around 46,600. Around 12,300 new employees have been added recently. A sizable number of new employees are in the Cupertino area.
Tim Bajarin, president of Creative Strategies, a consulting firm, said about Apple, “They’ve just had spectacular growth. They are one of the companies in the valley that are hiring, and the bottom line is they need the space.”
Kris Wang Mayor of Cupertino, commented, “We’re very proud to have Apple’s headquarters in our city. It’s not just a company. It’s the company.”
It is estimated Apple will add to Cupertino’s tax revenue in a significant way.
Neither Apple nor Hewlett Packard released any details about the transaction but an Apple spokesperson confirmed the purchase of the land.
There is a sluggish real estate market in the area so the price could have been advantageous for Apple who already has significant real estate holdings nearby. However, according to Steve Jobs, Apple CEO, who went to high school in Cupertino, Apple also looked at other areas for expansion.
In April 2006 Steve Jobs told the Cupertino Council, “But after looking at a lot of things, we found something in Cupertino that was a possibility. It was more expensive, a lot more expensive than we could get elsewhere, but it was something where we could stay in the area that we like the best.” He was talking about the land Apple already owned in the city.
Steve Dowling of Apple said, “We now occupy 57 buildings in Cupertino and our campus is bursting at the seams. These offices will give us more space for our employees as we continue to grow.”
According to Tim Bajarin,” Apple seems determined to grow close to home, in Cupertino. They’re spread over the world, and they do a lot of virtual meetings,” he pointed out. “But there’s no substitute, especially when you’re dealing with engineering and key technical designs, for having people close by.”
Apple has not released its plans for the land and there are no details about Apple’s long term plans for its new site in Cupertino.
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Tags: Apple, Apple Nasdaqaapl
Posted November 27, 2010 by Hanna Silver under Financial News