Why is Apple borrowing BILLIONS despite posting the biggest quarterly profit ever?


It made an $18bn profit last quarter

Just last week Apple reported a net profit of $18bn, the biggest quarterly profit ever made by a public company. The tech goliath also reported that it now has a cash pile of $178bn.

But this week, Apple has revealed plans to borrow $6.5bn through a new bond sale.

Why? Apple wants to return over $130bn to shareholders including billionaire investor Carl Icahn by the end of the year.

In its regulatory submission, Apple said it will use the dosh for “general corporate purposes, including repurchases of our common stock and payment of dividends under our program to return capital to shareholders, funding for working capital, capital expenditures and acquisitions and repayment of debt.”

Back in April 2014, Apple raised $12bn in bonds in the US and also raised $17bn a year earlier.

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