`Case 5:19-cv-00036—RWS Document 66-6 Filed 08/27/19 Page 1 of 6 PageID #: 2763
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`In Austin, Apple quietly booming, transforming tech sector’s culture - News - Austin American-Statesman - Austin, TX
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`By Lori Hawkins
`Posted Sep 4, 2016 at 12:01 AM
`Updated Sep 25, 2018 at 5:27 PM
`It might be one of the best-kept secrets of Austin’s technology sector: Apple Inc.,
`the world’s largest consumer electronics company, is in the middle of explosive
`growth here in Central Texas.
`
`Along a winding road off Research Boulevard in Northwest Austin, Apple has
`quietly transformed 38 acres of wooded land into its second-largest operation in
`the world.
`
`When the California-based technology giant completes the campus in 2016, it
`will include seven limestone-and-glass office buildings with a combined 1.1
`million square feet of space with restaurants, smoothie and coffee bars along
`with a full-scale gym with two saunas and a spa-like wellness center with
`services including medical, dental and eye care, acupuncture and massage.
`
`Apple’s investment in Austin is a significant statement for the Central Texas
`technology sector, local tech experts say — in part because it expands Apple’s
`Silicon Valley culture across the Austin ecosystem.
`
`“When Apple puts its stamp of approval on Austin like this, people notice,” said
`Mark McClain, CEO of Austin software maker SailPoint and chairman of the
`Austin Technology Council. “We want to be recognized as a great place to build
`a tech company, and this sends the message that we have the ingredients.
`
`As Apple pushes full speed ahead to finish out construction on its new Austin
`site, it is doing the same with hiring.
`
`Apple is in line to receive $35 million in tax incentives from the city, county and
`state for its Austin expansion. The company says it has already created more than
`5,000 jobs in Austin, including 600 in the past year. It currently has hundreds of
`
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`https://www.statesman.com/news/20160904/in-austin-apple-quietly-booming-transforming-tech-sectors-culture
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`I n A u s t in , A p p l e q u ie t l y b o om in g , t r a n s fo rm in g
`t e c h s e c t o r ’s c u l t u r e
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`open positions here, both for jobs at the new campus and at other locations.
`
`“Apple is the most successful high-tech company on the planet right now, and
`they’re choosing Austin,” said tech analyst Patrick Moorhead of Moor Insights &
`Strategy. “The reason Apple picked Austin is that, by comparison to a lot of
`other cities, it offers a very educated workforce, it has a deep pool of high-tech
`talent, and it’s a draw for many employees around the country. Especially when
`you’re trying to attract millennials, Austin is a really good place to be.”
`
`Under the terms of the 2012 incentives package, Apple agreed to create more
`than 3,600 new full-time jobs in Austin while retaining at least 3,100 existing
`full-time jobs. The company says it is well ahead of hiring projections, and, if
`Apple reaches those hiring figures, it would make it the second-largest
`technology employer in Central Texas behind Dell Inc., which has about 14,000
`local workers.
`
`The company also agreed to spend $282 million on new buildings and
`equipment in Austin over the next decade. Apple’s new campus, at West Parmer
`Lane and Delcour Drive, is responsible for running the company’s business
`operations for the entire Western Hemisphere.
`
`The first four buildings on the campus have opened, and, by the time all seven
`are completed by late next year, the site will house thousands of workers needed
`to support Apple’s continued growth. The average wage for those new jobs will
`be $54,000 a year in the first year of the expansion and will grow to $73,500 in
`year 10.
`
`The ripple effects will be felt all across Austin’s technology industry, McClain
`said.
`
`“Some people will come to work for Apple and get the entrepreneurial bug and
`go start a company. Others will eventually leave to join local tech companies that
`need their expertise,” McClain said. “It will help create a new wave of talent.”
`‘Critical to Apple’s success’
`
`Apple is seeking a wide range of skills at its new campus, including finance,
`human resources, corporate sales, customer support, information systems and
`accounting. Some of the openings target workers who are fluent in Spanish or
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`https://www.statesman.com/news/20160904/in-austin-apple-quietly-booming-transforming-tech-sectors-culture
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`Portuguese, which is critical for working with the company’s sizable business in
`Latin America. The company also is hiring in software and hardware
`engineering.
`
`But the new campus is just part of Apple’s ambitious growth plans for Austin.
`
`In March, Apple bought the nearby Riata Crossing complex, which has four
`office buildings with 350,000 square feet of space that the company had been
`leasing. Apple paid about $84 million for the complex, according to commercial
`real estate sources.
`
`In April, Apple signed a lease for the entire 216,000-square-foot Capital Ridge
`office building under construction in Southwest Austin. The company isn’t
`saying what work will be done at the various locations.
`
`“Austin is really critical to Apple’s success worldwide, and the biggest
`concentration of employees outside of our Cupertino headquarters are there,”
`said Denise Young Smith, Apple’s head of human resources. “It’s not just one
`large department, it’s a collection of really critical functions.”
`
`Young Smith said that while company was drawn here by its talent pool, the
`decision to grow in Austin was also spurred by Apple’s cultural connection to the
`region.
`
`“Austin has always been a voice and proponent of diversity and inclusiveness,”
`Young Smith said. “And there is also diversity in terms of talent, including the
`music and artistic community. We like that cross-pollination, and the job
`candidates that have been able to hire because of it.”
`Fast-paced expansion
`
`In Apple, Austin is getting a first-hand look at California-style technology
`culture, said Roger Kay, an analyst with Endpoint Technologies Associates.
`
`“California is really forward-thinking about employee health and well-being, and
`Apple has embraced that, especially in the past few years,” Kay said. “It is self-
`interest on the companies’ part, because it gets better productivity out of
`employees. But it’s a win-win because employees who are more satisfied tend to
`stay with the company and be better performers.”
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`https://www.statesman.com/news/20160904/in-austin-apple-quietly-booming-transforming-tech-sectors-culture
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`Despite stock market uncertainty and an economic slowdown in China, Apple is
`still in growth mode. The company reported another jump in profits during the
`third quarter as demand for iPhones soared. Apple said that it sold 47.5 million
`iPhones during the three months ending in June 27. It posted a profit of $10.7
`billion for the quarter on revenue of $49.6 billion.
`
`Its biggest challenge, Kay said, is scaling the business to continue its fast-paced
`global expansion. To do that, it will rely on its 110,000-person workforce, which
`is often characterized as driven, hard-working and loyal.
`
`“How does it take what it did well for 10 million customers and do it well for 100
`million customers? They have to add more people, but they also need to re-
`engineer procedures so things don’t fall between the cracks,” Kay said.
`
`At Apple’s Austin campus, the culture starts with the quiet, Zen-like feel of the
`place. Like Apple’s products, the buildings feature a sleek design, with minimalist
`interiors, lots of open space, stark white walls and green building technology.
`
`Apple, which has a reputation for intense secretiveness, last week allowed an
`American-Statesman reporter and photographer to tour the campus for the first
`time.
`
`Outdoors, the campus also has an open feel, with native landscaping, limestone
`paths, a large water fountain and an expansive grass area. The restaurants and
`cafes offer a wide selection of culinary options, including wood-fired pizzas,
`salads and Southern cuisine.
`
`But it’s the wellness center that sets the Austin campus apart. The 14,000-square-
`foot space, which is scheduled to open in two weeks, has the feel of a high-end
`spa resort. It employs two full-time physicians for primary and urgent care, as
`well as a dentist and dental hygienist; an optometrist and vision care center;
`chiropractic care; acupuncture, massage, physical therapy, registered dietitians;
`mental health and other counseling and a pharmacy.
`
`Apple officials say they expect most employees and their families will use the
`center for their primary health care needs. The wait time at the center is five
`minutes or less for 95 percent of the visits, and Apple says doctors spend three
`times more time with a patient than at a typical clinic.
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`https://www.statesman.com/news/20160904/in-austin-apple-quietly-booming-transforming-tech-sectors-culture
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`In Austin, Apple quietly booming, transforming tech sector’s culture - News - Austin American-Statesman - Austin, TX
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`The company doesn’t disclose the cost for patients, but it said care and services
`through the center are discounted for employees on their insurance plans,
`compared with other providers and outside clinics. Apple offers reduced co-pays
`as well.
`
`Beyond its new campus, Apple’s reach is extending into the Austin community, a
`city official said.
`
`Apple recently collaborated with the city’s Small and Minority Business
`Resources Department to host a networking event to introduce Austin business
`owners to Apple’s Supplier Diversity team. A survey of the 35 small firms that
`attended showed they appreciated the “one to one meetings” and found the
`company exhibited “a sense of sincere care for our community,” said David
`Colligan, manager of global business recruitment and expansion in the city’s
`Economic Development Department.
`
`Said Colligan: “We are already seeing signs of how strong of a corporate citizen
`Apple plans to be in Austin, Texas.”
`
`https://www.statesman.com/news/20160904/in-austin-apple-quietly-booming-transforming-tech-sectors-culture
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