Why Apple Takes on Debt
A company as rich as Apple doesn’t usually need to borrow other people’s money
This article is for subscribers only.
Apple has one of the biggest cash hoards in history, yet it has borrowed $35 billion in the past year and a half. Why does a company as rich as Apple need to ask other people for money? Avoiding a tax bill from bringing profits home is one big reason.
Profits are pouring in
Net income has averaged more than $9 billion for the past nine fiscal quarters. That’s far more than Apple needs to fund development of new products.