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

[BTW]

They should make it a real spaceship.

Seriously, Apple has been hit in the stock price but that was a delayed reaction to Steve's passing. They waited and saw that Tim Cook wasn't doing anything mind blowing, ignoring the iPad Mini, so they moved on and took their gains.

At the very worst Apple will lumber along like Microsoft, but I doubt that will happen. Why? Dell and HP are about to collapse and the Mac will see a rise in sales due at least to the perception that they are going to collapse; maybe they'll survive with MS money. The other reason being the divide between Google and Samsung. That division will be Apple's gain due to further fragmentation among its competitors.

When you bring out not 1 but 3 homeruns it is difficult to follow-up on that. This is why we are seeing a delay in innovation or perceive innovation at Apple. Will an Apple television be another homerun? Who knows, but rushing one out the door is not in the DNA of Apple. How about an iWatch? Maybe for atheletes but for getting real work done it is back to in the hand and not on the wrist.

The next revolution in consumer electronics is going to have to wait. When e-Paper evolves some more to the point where it is feasible and cheap enough to wallpaper your rooms with it then we'll see the next revolution. I want to be able to change my wallpaper in a room on-the-fly in full color and draw my screen for video and news feeds wherever I want it. I should also be able to locate control for home automation in any room. E-paper will take us there but will in be Apple that leads the way - who knows?

 

[AZREOSpecialist]

My question is this... If you are one side of the building but need to get to the directly opposite side (across the full diameter of the circle), how long will it take you to walk around half the circumference of the building in order to get to your destination? I don't see any sky bridges or shortcuts, so how are they going to facilitate that? Are they going to have Trek-style turbolifts?

 

[Arran]

My question is this... If you are one side of the building but need to get to the directly opposite side (across the full diameter of the circle), how long will it take you to walk around half the circumference of the building in order to get to your destination? I don't see any sky bridges or shortcuts, so how are they going to facilitate that? Are they going to have Trek-style turbolifts?

Tunnels? Like spokes on a wheel.

 

[SmileyBlast!]

If only you were around to advise Jobs instead of all those useless architects and engineers. There's no way they could have thought of that.

Don't forget that Steve often thought he was the smartest guy in the room.
That's why the article reports that one of the contractors involved was speechless with his over-the-top requirements.

Also when he opened one of the first stores he was in tears over the scuff marks on his personally approved flooring tile.

Vision can only take you so far. Design requires compromise. Sadly he's not here to make those compromises, but they will be necessary.

 

[jonAppleSeed]

5 billion to design and build a facility to make Safari snappier? I bet it'll be snappier!

LOL

It's good Apple is building a new HQ, their old one was stale and boring. I was thinking of jumping ship.

LOL

 

[iGrip]

Hubris?

This looks like it is going to end in tragedy. Or farce.

 

[AZREOSpecialist]

Absolutely since materials are affected buy temperature and a few other things. Buildings also move somewhat during high winds and hurricanes etc. the twin towers would sway up to 6 ft off the plumb line I believe.

They don't have hurricanes in California. The most they have to worry about is the occasional storm with 50-60mph winds and earthquakes. I'm sure a good chunk of the money being spent is going towards earthquake-proofing the building's foundation.

 

[AaronEdwards]

Don't quote me with your woeful attempts at sarcastic humour again.

It's not sarcastic humor.

You think it's a good idea to be spending $5 billion on something just because it was the last thing he was working on and to honor him.

(btw, the cost of the Taj Mahal has been estimated to be about $1 billion in modern money, but then, back then, labor was a lot cheaper.)

 

[maxosx]

[url=http://cdn.macrumors.com/im/macrumorsthreadlogodarkd.png]Image[/url]


In a lengthy report today, Bloomberg Businessweek takes a look at Apple's upcoming "spaceship" campus in Cupertino, noting that the project is currently one year behind schedule and roughly $2 billion over budget.According to the report, Apple is working to shave $1 billion from the cost of the project before beginning construction.

Image​

Bloomberg Businessweek pins much of the responsibility for the cost issues on Steve Jobs, whose insistence on design and construction quality as well as unusual and expensive construction methods have defined the project.Among other unique details contributing to project costs:

- 6 square kilometers of curved glass manufactured by Seele in Germany using specialized processes to prevent clouding or distortions. Seele has doubled the size of its production facility to accommodate the project.

- Per Jobs' orders, gaps between surfaces should be no more than 1/32 of an inch, far tighter than the typical 1/8 inch standard in U.S. construction.

- Polished concrete ceilings are to be cast in molds and then raised into position to ensure uniformity, rather than being cast in place. The requirement "left one person involved in the project speechless."

The report notes that investors concerned over Apple's falling stock price and looking for the company to return more cash to shareholders are questioning Apple's commitment to following through on Jobs' vision for the new campus. The company may, however, have little choice in the matter if it seeks to maintain its image as an iconic and visionary company in the post-Jobs era.

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

Steve Jobs was one of the worlds greatest showmen & hypocrites.

Quality fit eh?

Read this, I dare you:

https://forums.macrumors.com/posts/17096708/

 

[AZREOSpecialist]

Tunnels? Like spokes on a wheel.

I hadn't thought of that, doh!

Clearly Apple's new campus was inspired by "2001: A Space Odyssey"

 

[BaldiMac]

My question is this... If you are one side of the building but need to get to the directly opposite side (across the full diameter of the circle), how long will it take you to walk around half the circumference of the building in order to get to your destination? I don't see any sky bridges or shortcuts, so how are they going to facilitate that? Are they going to have Trek-style turbolifts?

Outer circumference is about 1 mile (1.6 km). So, about 10 minutes (3 mph) to walk from one side of the building to the other around the outer perimeter. Less around the inner perimeter.

Or you could just walk across the courtyard in less than half that time. 1,615 ft diameter. Courtyard looks to be around 1,100 ft diameter.

 

[maxosx]

The world over Trekkies are salivating.

 

[coolspot18]

They have 140 billion on the bank. They can afford it. I hope they stay true to the vision of Jobs.

The money does not belong to "them", it belongs to the shareholders. Apple is a public company not ex-Jobs fiefdom.

 

[AZREOSpecialist]

It's not sarcastic humor.

You think it's a good idea to be spending $5 billion on something just because it was the last thing he was working on and to honor him.

(btw, the cost of the Taj Mahal has been estimated to be about $1 billion in modern money, but then, back then, labor was a lot cheaper.)

I don't believe going through with this campus is to honor the late Steve Jobs. Apple is doing this in order to attract the best talent in the world. If you are in school right now and want to work for a high-tech giant, wouldn't you want to work in one of the most amazing collaborative spaces in the world?

Apple sees this as not only building something incredible - mirroring in a commercial building what they have been able to do with their retail products - but also as making something that will attract the best high-tech talent in the world. I think it would make for a very attractive package to any prospective Apple employee or intern.

 

[Don't panic]

well it's not as if the extra money is being physically burned on an altar at the center of the spaceship.
it will go to pay for labor and materials, the vast majority locally, so it is a massive boon to the economy and will eventually end up in the pockets of people who need it more. not to mention the taxes and all other indirect costs.
so why are people complaining?

 

[coolspot18]

You think it's a good idea to be spending $5 billion on something just because it was the last thing he was working on and to honor him.

Steve Jobs did not have a controlling share in the company therefore it is not his company and the company does not have an obligation to spend 5 billion to honour him. The company's only obligation is to honour the shareholder and ensure that money is spent in a wise and sensible fashion.

it will go to pay for labor and materials, the vast majority locally, so it is a massive boon to the economy and will eventually end up in the pockets of people who need it more. not to mention the taxes and all other indirect costs.
so why are people complaining?

Apple is not a charity. Its only charity should be to the shareholders.

 

[ronwasserman]

You're kidding me! Construction.... running late and over budget? Wow! Now that never happens.

DUH!

 

[AZREOSpecialist]

The money does not belong to "them", it belongs to the shareholders. Apple is a public company not ex-Jobs fiefdom.

Not really. If Apple spends all of its money, there is nothing for shareholders. Shareholders haven't created Apple's cash wealth - Apple created that. All the investors do is cause Apple's stock price to fluctuate wildly. Apple has no debt, $137B in the bank (expected to swell by another $15-$20B in 2013), and none of that is due to the shareholders.

 

[coolspot18]

If you are going to spend billions on a new building, you had better do it right. I would probably take a vacation just to marvel at the beauty of the building and campus. Some folks just will not understand that. What is 2 billion more to Apple really??

2 billion out of the pockets of investors.

 

[samcraig]

I don't believe going through with this campus is to honor the late Steve Jobs. Apple is doing this in order to attract the best talent in the world. If you are in school right now and want to work for a high-tech giant, wouldn't you want to work in one of the most amazing collaborative spaces in the world?

Apple sees this as not only building something incredible - mirroring in a commercial building what they have been able to do with their retail products - but also as making something that will attract the best high-tech talent in the world. I think it would make for a very attractive package to any prospective Apple employee or intern.

So are you saying that Apple can't recruit the best talent now?

 

[coolspot18]

Not really. If Apple spends all of its money, there is nothing for shareholders. Shareholders haven't created Apple's cash wealth - Apple created that. All the investors do is cause Apple's stock price to fluctuate wildly. Apple has no debt, $137B in the bank (expected to swell by another $15-$20B in 2013), and none of that is due to the shareholders.

Apple as a public company reports to the shareholders and is ultimately responsible to the share holder. So yes, if the management board decided to blow all the money, there would be a shareholder revolt and the CEO turfed.

----------

So are you saying that Apple can't recruit the best talent now?

To be honest, Apple does not recruit the best talent - perhaps only in certain spaces like marketing and design. But in terms of software or even direct sales, it's not such a good company to work for.

 

[AZREOSpecialist]

The company's only obligation is to honour the shareholder and ensure that money is spent in a wise and sensible fashion. Apple is not a charity. Its only charity should be to the shareholders.

No, the only obligation Apple has is to Apple's employees. There is zero obligation to shareholders. Apple has not reached its current level of success by listening to or "obliging" shareholders. In fact, most of the recent decline in Apple's stock is exactly because it is not concerned with making shareholders a priority. I agree with Apple. You do not run your business and design your products in order to please your shareholders. Apple is a consumer electronics company and its market is electronics consumers. What shareholders should be concerned with is the competence of the executive team, which is stellar.

----------

So are you saying that Apple can't recruit the best talent now?

No, I'm saying that it would assist in that endeavor and would be a justification for some of the cost/investment.

 

[Don't panic]

Steve Jobs did not have a controlling share in the company therefore it is not his company and the company does not have an obligation to spend 5 billion to honour him. The company's only obligation is to honour the shareholder and ensure that money is spent in a wise and sensible fashion.




Apple is not a charity. Its only charity should be to the shareholders.

the last bit is debatable.
in anycase, it's only shareholders that can complaint. for everyone else there is no negative in them doing this.
And even for shareholders, given how much of the value of the company is built on its image, are you sure that this wouldn't add to the aura of the company and thus make it more valuable?

 

[samcraig]

Apple as a public company reports to the shareholders and is ultimately responsible to the share holder. So yes, if the management board decided to blow all the money, there would be a shareholder revolt and the CEO turfed.

----------



To be honest, Apple does not recruit the best talent - perhaps only in certain spaces like marketing and design. But in terms of software or even direct sales, it's not such a good company to work for.

I hear what you're saying. I don't think a building is going to change that. Corporate culture, salary, etc - those things will affect where people work.

It's not like Apple is going to shove employees into an outhouse. 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.

 

[AZREOSpecialist]

Apple as a public company reports to the shareholders and is ultimately responsible to the share holder. So yes, if the management board decided to blow all the money, there would be a shareholder revolt and the CEO turfed.

You missed my larger point, which is that the money in Apple's accounts does not belong to the shareholders. I used the example of Apple "blowing" its cash hoard as an example showing that the shareholders ultimately have no say in how Apple spends its money.

When was the last time you saw a shareholder revolt at a publicly traded company? And by the way, what happened with Einhorn was not at all about returning money to shareholders.