Steve Jobs' Requirements for 'Fit and Finish' Leading to Massive Cost Overruns for Apple's New Campus

[dru`]

I agree, are they going to let him dictate what Apple does for the rest of their lives? His way of thinking is no longer valid, however I am not taking away from the things he had an impact on over the time he was with Apple.

Um... your idea that "his way of thinking is no longer valid" is what nearly destroyed Apple in the '90s. I'd say his success proves the validity of his "way of thinking."

Look at the Apple Stores. If they were just "any stores" and not created to Steve's exacting standards, would they have been the success they were or the failure predicted? There's data on environment, surrounding and so forth positively (or negatively) effecting performance and productivity.

Large building projects ALWAYS go well over initial budget. This is hardly surprising. They have the funding, build the building.

Steve intended, if you look at his presentation to the Cupertino City Council, for the building to be iconic, to be a marvel that architectural students would come to study. It was part of his pitch for approval.

 

[AZREOSpecialist]

Some people here are making it out like - it's this "temple" to Steve or it's going to be some piece of crap that will have a domino effect on the entire company.

Isn't that what people say about Apple's products in general? LOL

 

[DrMotownMac]

Meh. While I admire the attempt to create something great, why bother? I would think most people want their products to be good and could not give a crap about the building.

Idea to shave about 4 billion. Make it a normal building.

Ah, the Michael Dell philosophy... Just make "normal" stuff by copying what's already out there, shave off a few dollars here and a few cents there by using shoddy materials and labor, and then slap it together for one fifth the price!

And MANY people are perfectly happy using Dell products vs. Apple products. It gets the same job done for a lot less money. But, if this is the future Apple World Headquarters, and if it's going to be featured on magazine covers, TV news (including CNBC), newspapers and websites around the world, and it's going to represent Steve Jobs' legacy, would it really be appropriate to "make it a normal building?!?"

If they abandoned the original vision for the building just because they're cheap and Steve is dead, then I'd have serious doubts about their commitment to quality that Steve pushed for with their products. If you would continue to trust Apple to make quality products in spite of that decision, then I have some swampland to sell you down in Florida....

Apple's commitment to quality (or lack thereof) is EXACTLY what the headlines would be if they scrapped this project in favor of a "normal building." They don't have a choice but to stick to the plan, save for shaving a few dollars on some invisible minutia. And Tim Cook is smart enough to realize that.

 

[jaw04005]

2 billion out of the pockets of investors.

This building is a $5 billion investment in future engineering talent. Investors (and let's get real ... these are not your average stockholders, these are mutual funds, hedge funds, large banks, etc) need to realize they don't run the company. They can vote each year for Apple's management like everyone else.

 

[flux73]

They should make the pond in the centre the shape of the apple logo.

They should make it in the shape of a rounded square.

 

[Nightarchaon]

They are building it now so they can patent the hell out of it. That way - when extraterrestrial life visits earth - Apple can be the first one to have an intergalactic patent lawsuit!

ET phone lawyers

 

[iphoneclassic]

I guess uplink to the Mother Ship is costing a lot.

 

[samcraig]

Steve intended, if you look at his presentation to the Cupertino City Council, for the building to be iconic, to be a marvel that architectural students would come to study. It was part of his pitch for approval.

Yea - but do you really think this building - if you see a paintbrush stroke is going to change all that?

I'm just asking. Personally I think Steve did take pride in absolutely everything and everything. Or at least he "sold" it that way.

But I also believe that there are limitations in the real world. Compromises do have to be met. He might have wanted something specific. If that deems too costly (and I am not saying what is and what is the threshold) or would delay the project too much (again - no idea of what is or is not too much) then that needs to be taken into consideration.

It's entirely possible that what Steve wanted would/will take a decade vs a few years. And it could cast several billions more by the time it's done than when it was conceived.

Anyone who suggests Apple just write a check for whatever that's going to be without CONSIDERATIONS is just crazy.

 

[AZREOSpecialist]

Is everyone here forgetting what makes Apple great?

Apple didn't make it big by selling average products to average consumers and pleasing its stockholders. What made Apple great, and the incredible success it is today, is exactly its commitment to excellence, thinking outside of the box, and taking product engineering to an incredible new level.

Apple's home campus should represent Apple's core values. Do I need to remind people that Apple's core values do not include words like "average", "mediocre", "just okay", "cheap"? Apple's campus is not a monument to Steve Jobs, it's a monument to Apple's core values as a company. Everything about this building exudes what Apple is all about.

Some here may feel it's overkill. Some may feel Apple should pay more attention to its stockholders. To those I say this: Apple will be Apple. For better or worse. I have a feeling we're in for a wild ride the next two years. A great one!

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Anyone who suggests Apple just write a check for whatever that's going to be without CONSIDERATIONS is just crazy.

Who here is suggesting that?

 

[Arran]

This building is a $5 billion investment in future engineering talent...

Only if Apple donate it to a college or university once it's built.

Of course if they wanted to do that, they could just give out the equivalent cash in scholarships. I don't think the "future engineering talent" would complain!

 

[GoldenJoe]

The same could be said for any nice smartphone then. Or any nice shoes, coat, home, or car. I mean, why bother when we could all just use cheap garbage?

I don't think 1/8" spacing would make the building garbage, but to each his own. Besides, I'm talking about the over budget costs.

 

[samcraig]

Who here is suggesting that?

Do you really want me to count posts/name names of all the people who pretty much wrote a variant of "Apple can afford it - whatever it costs" type of posts?

 

[the8thark]

I think even Steve told his successors, shortly before he passed away, that he'd like them to run Apple by making their own decisions. One thing about Jobs was, right or wrong, he made choices and followed through with them.

For all the grief people gave about some of his design choices (1 button mice, for example?), he didn't just change his mind and say, "Oh... maybe people don't like my idea so much." He pushed forward with it, and today, people still associate that 1-button mouse with Apple branded products. When he knew the switch to OS X made only 1 button impractical, he still stuck to his beliefs by releasing a "no button mouse" with the mighty mouse and then the magic mouse, vs. caving in and making a mouse just like every other one on the market.

I think the proper way for Apple to handle this building project is to build a campus THEY can be truly proud of, and which reflects Steve's vision for it, while still incorporating current leadership (making decisive choices where it saves the company money, while still resulting in a superior result).

I've worked in construction related business for a long time myself, and one thing I know is -- they LOVE to inflate the projected cost of a project as soon as you demand they do something different than the way they're used to doing it. It doesn't matter if your way is more efficient and superior. They're very resistant to change and automatically think, "Make me learn a new way to do my job? I'm gonna make you PAY for that!"

So this may require getting more bids from newer, more flexible contractors who are willing to try new things?

You are correct here. Steve wanted a one button. But OS X needed a right click. And command click just didn't cut it. So he made what he needed (the functionality) in the form he wanted. And I think that's what Apple do a lot. They make what they need fit the form they want. Wheras the other just make anything with the functions they want don't care if the form changes.

 

[jonAppleSeed]

I wonder if there is a clause in the contract that stipulates the construction company is barred from using any Samsung heavy machinery in the construction of the building?

 

[winston1236]

The price of the 5S and all MBP's just went up.


You need a good woman my friend.

Wow. Agreed

 

[TallManNY]

As a shareholder I'm happy for an homage to Steve and a fantastic headquarter. But hopefully Apple won't decide that now all their data centers or retail stores need to be constructed to same specifications as a next step.

This is a good example of why Apple's stock is trading so low. Einhorn is right that shareholders are not valuing the cash horde because they figure it is largely just going to get wasted on boondoggle purchases. This is certainly a boondoggle. But it is nice, it might inspire the Apple workers or help recruit better help. Though I suspect DOUBLING everyone's cash salary for a year would also be inspiring and I suspect a billion dollars could do that for everyone who might end up working in that headquarters.

The HQ is a waste of money, but it is nice and if it is a one time waste, then no big deal. And I'm assuming that even these estimates are probably going to be low since these are techniques and processes that have never been done to this scale.

 

[the8thark]

What are the "significant design flaws" on your iPad 2? I ask because you used the word "significant". How are plastic volume buttons a design flaw? They might not look as aesthetically pleasing but that doesn't equate to a design flaw.

I agree that's not significant. But "aesthetically pleasing" is at Apple's core. If I saw an Apple product that was not at least moderately aesthetically pleasing it'd not buy it. But I know this won't happen in the near future.

 

[filmantopia]

As if Steve didn't do enough for Apple to deserve it made the way he wanted.

 

[coolfactor]

What happens with all the rest of the wood? Just discarded? Ridiculous demands like this often don't feel very environmentally friendly.

It's not said what is done, so speculation is more dangerous than trusting that the companies doing the milling will be using every part possible, maybe not for Apple's product, but for other customers.

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...my iPad, it's got 2 significant design flaws, both the result of cost-cutting - the buttons are plastic now and the new dock connector is a piece of **** (and still doesn't have strain relief!)

The buttons weren't plastic before?

The new dock connector was not for cutting costs, but for saving space. It's actually more expensive than the previous connector. It would've been cheaper to keep using the existing connector, but it had seen its day and was becoming abused by third parties. I can't count the number of times I've come across cables and accessories that didn't work properly or "were not supported" by my iPhone. Apple was smart to migrate away from it and provide a modern replacement.

 

[JAT]

But I hear they track all your eating habits at Google and sell that data to grocers!!!!

Good. Maybe they'll have what I want in stock for once.

 

[TsunamiTheClown]

According to the report, Apple is working to shave $1 billion from the cost of the project before beginning construction.

My favorite part.

 

[Arran]

As a shareholder I'm happy for an homage to Steve...

Thing is, I don't think Steve intended it as a homage to himself (like some sort of everlasting Pyramid.)

I think Steve wanted it as a stage for himself. A massively impressive backdrop for him to stage his 'events' as he wooed the world's press, trendsetters and financial communities. It's something he excelled at and the building would've amplified his sales presentations magnificently.

Unfortunately he's not around and Tim just doesn't have the presence or chutzpah to strut around the way Steve did, selling everyone his vision of a better world.

The palace is still awesome in its undeniable excellence, just a bit pointless without its King.

 

[the8thark]

To me this building is like the Brisbane (Australia) city hall. The mayor at the time (a legend in my books) asked the public "should we spend a few million to fix the damage of the building. it was falling down around them. Or save the money, bulldoze it and spend the money elsewhere.

Almost 100% of the people said bulldoze it and save the money.
But you know what the mayor said? Screw you all. I'm doing it. Fixing the building. Because it's not about what you want to have, it's about what we ought to have. And in the process the builders unearthed some archeology about Brisbane's past. Plus the new building looks amazing.

My point?
People can cry hey this is a waste of money or why bother or do it to a low standards. But the facts are they ought to have this Apple building built. For many reasons:

- A better work environment for better worker productivity
- A good way to remember Jobs
- A nice tourist attraction to the local area. Sure the public can't just walk in but they can see it. This work of art when it's done.
- More jobs created to build and maintain it. (So you can say Jobs did create jobs even after his death)
- 3+ billion being spent within the state and country. A good thing for the failing US economy.
- A glimpse of the future. Just like the phones. Most phones have the iPhone look now. (forgetting all the legal crap, it's a good thing, the phone design standards improved thanks to Apple). Who knows in years to come builders could take parts from the Apple spaceship and use it in their own buildings.
- and probably more.

I'm glad this building is being build. All art (and this building is art) is not a revenue earner in it's own right. But people need it. Or we become uncultured pigs (the word I wanted to use would probably get me banned though it's the truth). Lets keep humanity's standards high and only accept the best. Like Apple do.

 

[bilbo--baggins]

It would be a shame if Steve Jobs legacy doesn't even survive long enough for this project to be completed as intended.

In a way, it will be a real test of whether Apple is still special, or just a large business run by business people.

 

[dysamoria]

Exactly what I was thinking. Expansion cracks and lots of stuck doors coming soon. I can't imagine the requirements of the HVAC.

Smaller gaps make controlling environments easier, not harder. That is, if the system is designed well in the first place. Big buildings are notorious for HVAC problems. Huge spaces and physics...