Apple’s inventory surges 154% as memory chip costs climb
Apple reported a 154% year-over-year surge in inventory, largely driven by the need to stockpile memory chips amid rising costs. CEO John Ternus indicated that these costs are expected to continue increasing, potentially impacting future device pricing.
Why it matters
Apple's supply chain strategy and inventory management provide a bellwether for the broader electronics industry's ability to navigate component cost volatility.
Apple’s stockpiling of inventory, particularly computer memory, continued in its fiscal fourth-quarter, according to earnings reported Monday. The company reported that its inventory increased significantly in the quarter, growing from $11.09 billion in Q3 to $14.54 billion in Q4, a jump of 31.1%. Year-over-year, inventory grew 154.3% from $5.72 billion in the fourth quarter of 2025.
Apple’s forecast of a 45% to 46% gross margin in the December quarter was largely attributed to the impact of higher memory costs. The company reported a gross margin of 47.9% for the September quarter.
“What we’re seeing with memory pricing right now is unprecedented,” said Apple CEO John Ternus, speaking to analysts on the call. “As we said earlier in the September quarter, we did see higher memory costs as compared to the June quarter, which were partly offset by the benefit of carrying inventory and lower costs on certain non-memory components.”
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