Apple's
move to tap the bond market – despite sitting on a hoard of cash – is a
smart one, according to John Sculley, the former CEO of the company.
"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.
"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 about a
potential bond sale – a part of which would be denominated in euros. It
has surprised some analysts given the company's record-high share price,
$155 billion in cash and a successful launch of its latest smartphone.
Read MoreApple's latest innovation: Borrowing money from Europe
But Sculley said the move would give the tech giant more flexibility than if it tapped its own reserves.
"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 added.
Sculley's latest venture is smartphone company Obi Mobiles – but he
insists that it poses no threat to his previous employer. With devices priced between $100 and $200, Obi aims to capture a market ignored by Apple: youth in emerging markets.
Read MoreMeet Obi: Ex-Apple CEO's new smartphone brand
Smartphone technology is "pretty much commoditized", according to Sculley, who has brought in a design team from both Apple and Beats to work for the company. "And we think we can differentiate in a commoditized market at very disruptive prices with great design and with good marketing," he said.
He added that Obi will "never" have a U.S. presence. "We're focused on an entirely different market."
Read MoreApple's latest innovation: Borrowing money from Europe
But Sculley said the move would give the tech giant more flexibility than if it tapped its own reserves.
"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 added.
Sculley's latest venture is smartphone company Obi Mobiles – but he
insists that it poses no threat to his previous employer. With devices priced between $100 and $200, Obi aims to capture a market ignored by Apple: youth in emerging markets.
Read MoreMeet Obi: Ex-Apple CEO's new smartphone brand
Smartphone technology is "pretty much commoditized", according to Sculley, who has brought in a design team from both Apple and Beats to work for the company. "And we think we can differentiate in a commoditized market at very disruptive prices with great design and with good marketing," he said.
He added that Obi will "never" have a U.S. presence. "We're focused on an entirely different market."
- By CNBC's Katrina Bishop in Dublin
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