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How Apple will make $1 million by taking on $1 billion of debt

Sam ColtFeb 10, 2015, 23:29 IST

Apple is raising over $1 billion in Swiss debt after offering $6.5 billion in US bonds earlier this month.

The company has about $178 billion in cash, but interest rates are so low that it could actually turn a profit on the deal by using the cash to buy its own stock, reducing dividend costs.

Apple analyst Neil Cybart explains how on Above Avalon:

This is why taking on another loan is a no-brainer for Apple, even though the company has more than $170 billion in cash on hand.