Former Apple (AAPL) CEO John Sculley said Tuesday that the company’s move to raise money, despite sitting on $155B in cash, will give the iPhone maker more flexibility than if it tapped its own reserves.
“It’s probably a smart thing to do. The access to capital is good. And as we say in the high-tech world, you raise money when you can,” he told CNBC at the Web Summit tech conference in Dublin.
Apple held calls with debt investors on Monday to discuss a potential bond sale, which may be the first sold in euros. The company was last in the bond market in April with a $12 billion deal, following up on last year’s record-breaking $17 billion sale.
Apple’s third potential bond sale has surprised some Wall Street analysts given the name’s record-high pps and successful launch of its latest smartphone. Sculley however, said the move would give Cupertino more maneuvering room.
“I think it will just give Apple more flexibility to things they want to do in the future. They can buy their stock back; they can do other things with it,” he said.