Apple issued bonds worth $4.5 billion to repurchase stock and repay outstanding debt on Monday. The issue comprised $1.5 billion of three-year notes and $1 billion each of five-seven-and 10-year notes, Reuters reported. This is the first time in two years that the iPhone maker issued bonds.
This comes around a time when the company has $8 billion in debt maturing between May and November this year. Apple’s debt sale had order books way above the amount the company sought. The orders totaled around $10 billion, Reuters reported, citing a source.
Apart from Apple, eight other companies, including Comcast, DTE Electric and General Motors, issued bonds totaling $35 billion. These companies had planned the issue earlier, but due to US President Donald Trump’s tariff hike, firms had taken a step back.
Now, with a 90-day pause by Trump on reciprocal tariffs imposed on all countries, barring China, Apple’s bond sale is likely to benefit from tightening investment-grade bond spreads.
Last week in an earnings call post second quarter results for the financial year 2025, Apple’s CEO Tim Cook said that the tariffs could increase its cost this quarter by $900 million, Reuters reported. The iPhone maker reported revenue of $95.36 billion, slightly above analyst’s projection of $94.68 billion. iPhone sales touched $46.84 billion, and Apple’s services division reported $26.65 billion in revenue. Apple’s wearables and accessories segment, including AirPods and Apple Watches, reported $7.52 billion in revenue.
Apple has planned to invest $500 billion on business expansion towards capital expenditure and operational outlays in the US amid Trump’s persistent push for the iPhone maker to increase its domestic manufacturing efforts. The investment will help it finance new chip factories in partnership with manufacturing partners. This also comes at a time when the company is significantly reducing the production of its goods in China.
