Sedona AZ (February 10, 2015) – Apple® will open an International Operation Center in Mesa, Arizona. As announced in a press conference last week with Governor Doug Ducey, State Senate President Andy Biggs and Mesa Mayor John Giles, Apple® wants to make one of the largest investments in its history – $2 billion for Arizona in the first 10 years, which would include 150 full-time jobs and 300 -500 construction jobs annually. The project is estimated to have a 30-year timeline.
As proposed, Arizona House Bill 2670 would enable Apple to open and begin hiring immediately by simply changing the framework and language in current law. This will be done in two ways; first, by giving an exemption from sales tax for the electricity or natural gas the operation center will purchase, and second, by expanding a current tax credit to include the use of “renewable energy” at the operations center, instead of for manufacturing only.
Instead of an exemption for a minimum investment of $300 million spread across five facilities, the new language will allow for $150 million and one facility. In addition, the tax credit is conditioned upon a separate $1.25 billion investment in the operation center. The sales tax credit has already been scored in the budget and will come at no cost to taxpayers.
“Apple is just the kind of high-tech, innovative company that we want to bring to Arizona,” stated Arizona State House Speaker David Gowan. “Their interest in our state is testament to the fact that Arizona is the best place in the country to work, and to do business. I am excited to work alongside the Governor and Senate to make this a reality.”
As part of the project, Apple is building and financing solar projects that will produce 70 MW of clean energy – enough to power 14,500 Arizona homes.
On January 27, 2015, Apple announced financial results for its fiscal 2015 first quarter ended December 27, 2014. The Company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 37.9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarter’s revenue.
The results were fueled by all-time record revenue from iPhone® and Mac® sales as well as record performance of the App Store℠. iPhone unit sales of 74.5 million also set a new record.
“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO. “Our revenue grew 30 percent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal.”
More details on HB 2670 may be found online at AZ.gov.
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Al Gore Jr is on Apple’s Board of Directors. Apple has been investigated and cited by many countries including ours for its tax dodge practices. Apple has been cited and investigated for illegal labor practices and oppression of people with unfair wages and forced labor. Al Gore Jr is on its Board and he’s one of a handful making these decisions. Note to Arizona: Yes, we will be pillaged by Apple for it’s lousy 150 jobs at the cost of millions paid to them. Plan on getting tax screwed but damn we pay big for cachet or a designer’s name on our city’s purse.