The company that recently reported highest ever quarterly earnings of $18 billion in Q4 2014 is exceptional, and its name is Apple Inc. (NASDAQ:AAPL).
Apple launched its latest iPhone, iPhone 6 and iPhone 6 Plus, in the market in the fourth quarter of 2014, and it boosted revenue earnings much more than Apple, or anyone else, could have anticipated.
The company seems to be on a consistent and continuous upward ride, with no downside coming up anytime soon. For the year 2015, Apple already has a line of products ready to dominate the market, including the much anticipated Apple Watch, the more powerful and revamped Apple MacBook Pro, and the redesigned iPad Pro with Stylus. With most of the new releases scheduled to come out in the second quarter of 2015, Apple may just be looking at another highly successful quarter.
But what now? Apple Inc. already seems to have achieved much more than most companies hope to achieve in their entire lifetimes. The iPhone makers seem highly energetic still, and are actively looking for more markets to tap in order to improve revenue figures even further.
The latest successful tapping of an international market for Apple occurred in China, when Apple signed a deal with Union Pay and China Mobile to launch and integrate the iPhone 6 and iPhone 6 Plus deep within China. Now, China is the biggest market for Apple in the world, even greater than the US.
This has provided Apple more confidence, and the company is looking forward to tapping not only more markets but also more industries.
One such venture the company is planning on pursuing this quarter is the sale of its bond in the Swiss francs, which is the currency operating within Switzerland. People have already been hired to manage the sale of the bonds in the market, according to a source close to the company. Notable managers include Goldman Sachs, a multinational banking firm dealing in investments based in the US, and Credit Suisse, a multinational firm based in Switzerland dealing in financial services holding.
According to analysts, Apple’s decision to tap the industry for bonds in Swiss francs is purely demand-supply based. Demand for bonds in Swiss francs has risen sharply in the past few months, as the country unpegged the currency from the Euro, resulting in rising value of the francs. Now, people are investing in bonds maturing after 10 years.
This offers Apple the opportunity to burrow in the market at cheaper rates, as the value of corporate bonds is linked to the value that is set on government debt. As far as maturity of the proposed Apple bonds is concerned, it is not yet clear how long they will take to mature. However, according to analysts, the bonds will be of a short-dated nature, which would be the first time a corporate bond would sell in Europe with such a specificity.
According to some credible sources, the maturity time being considered by Apple Inc. (NASDAQ:AAPL) most probably lies in between 10-year to 15-year maturity period. Currently in the negative yield figures, the bond will matures with yield in the higher single digits or lower double digits.
