With a thirty-year bond yield, Apple enters corporate adulthood

Take off the pullover and put on a suit and tie – you aren't a tech stock anymore.

Last week saw Apple turning a final corner in its long development as a company. It is no longer just a tech stock – it's now a boring old blue-chip.

During its quarterly earning earnings call, the company increased its dividend by 15 per cent (it will now pay $3.05 a share every quarter), boosted the size of its share buyback plan sixfold, to $60bn, and, most interestingly, announced a bond issue to pay for it all. The company now intends to return $100bn in total to its shareholders by the end of 2015.

Today, Apple filed its draft prospectus for the bond issue with the SEC, confirming the durations it will be borrowing for and the banks in charge. Goldman Sachs and Deutsche Bank will be jointly overseeing the issue, which is of sets of two floating rate notes, due in three and five years, and four fixed-rate notes, in durations of up to thirty years. That's barely shorter than the entire lifespan of the company to date, making the investment a real punt in the dark for anyone buying into it.

We don't yet know how much of each duration Apple is planning to borrow, nor – crucially – the rates they are offering. But the plan looks likely to have very little to do with the typical reasons for corporate borrowing: Apple still has an enormous pile of cash, which means that investment isn't the name of the game.

Instead, the company appears to be using its extraordinary creditworthiness – as well as the ultra-low bond yields which are a sign of our times – to overcome an issue it has with that cash pile: most of it is kept overseas.

The US only charges tax on cash which has been "repatriated", so while Apple leaves money from overseas operations overseas, it doesn't have to pay any tax on it. It's waiting – as it has been for years, now – for a "repatriation holiday", when it hopes a future government will temporarily lift that tax to encourage the companies to bring cash home. Until then, if it needs money domestically, borrowing is as good as any other method. And if its rates are low enough, it might even make a bit of money on the deal.

But with dividends, bond yields, and share buybacks, Apple has entered a new – and dull – stage in its corporate progression. These aren't the actions of a high-growth tech stock; they're those of a company bedding in for the long-haul. Apple expects to be here in thirty years, and still be largely the same when it is, and its asking investors to bank on that. Fun for them, but the white-knuckle days are over for us.

Apple CEO Tim Cook at a presentation for the company. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.