Apple inventory jumps as memory chip costs surge
Apple reported that its fourth‑quarter inventory rose to $14.54 billion, a 31.1% increase from the prior quarter and 154.3% year‑over‑year, driven by pre‑purchasing memory amid rising component prices. CEO John Ternus said memory costs will keep climbing in the December quarter and beyond, with some offset from recent device price hikes on iPads, Macs and iPhones. The company also raised its manufacturing purchase obligations for memory by $33 billion from June to the September quarter. iPad revenue fell 10% year‑over‑year to $6.2 billion, missing estimates.
Why it matters
The company expects higher memory costs to pressure gross margins, though price increases on devices are intended to mitigate the impact. The larger inventory and increased purchase obligations signal continued exposure to component price volatility for investors.
Key facts
- 1Fourth‑quarter inventory grew to $14.54 billion, up 31.1% from $11.09 billion in Q3. finance.yahoo.com
- 2Year‑over‑year inventory rose 154.3% from $5.72 billion in Q4 2025. finance.yahoo.com
- 3Apple’s manufacturing purchase obligations for memory increased by $33 billion from June to the September quarter. finance.yahoo.com
- 4iPad revenue was $6.2 billion, down 10% from the prior year and below analysts’ $6.7 billion estimate. finance.yahoo.com
- 5Apple’s inventory was $14.5 billion, more than double year‑over‑year, according to the earnings call. macrumors.com
- 6CEO John Ternus said memory pricing is "unprecedented" and will continue to increase in the December quarter and beyond. macrumors.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.