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Apple's 'Spaceship' campus over budget by 66%, price tag now sits at $5B

Apple's new Spaceship campus over budget by $2B, Apple looking to shave $1B from $5B price tag

| Business, Financial & Legal News | Posted: Apr 4, 2013 10:32 pm

Apple's new Campus 2, also known as the "Spaceship" campus, is an expensive and complex undertaking. When the project was first announced, Apple budgeted around $3 billion. On a project of this magnitude, cost overruns are to be expected, but maybe not as large as Apple's.

 

TweakTown image news/2/9/29539_1_apple_s_spaceship_campus_over_budget_by_66_price_tag_now_sits_at_5b.png

 

New estimates put the cost of the new Spaceship campus at around $5 billion. That's around 66 percent more than what was originally budgeted. Adding insult to injury, the projected move-in date has been pushed back from 2015 to 2016. But Apple can't cancel the project as it is a monument to the late Steve Jobs.

 

However, Apple is looking to save some cash. They want to reduce the cost by around $1 billion by reducing the fit and finish of the building. This means being less detail oriented and not building it to the same iPhone-level quality standards.

 

The question is should Apple be focusing its energy on building new products rather than a new campus? After all, stock price has suffered in the past year.

NEWS SOURCES:Businessweek.com

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