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

Apple is raising over $US1 billion in Swiss debt after offering $US6.5 billion in US bonds earlier this month.

The company has about $US178 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 $US170 billion in cash on hand.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.