Apple’s inventory surges 154% as memory chip costs climb

Apple’s stockpiling of inventory, peculiarly machine memory, continued successful its fiscal fourth-quarter, according to net reported Monday. The institution reported that its inventory accrued importantly successful the quarter, increasing from $11.09 cardinal successful Q3 to $14.54 cardinal successful Q4, a leap of 31.1%. Year-over-year, inventory grew 154.3% from $5.72 cardinal successful the 4th fourth of 2025.

Apple’s forecast of a 45% to 46% gross borderline successful the December 4th was mostly attributed to the interaction of higher representation costs. The institution reported a gross borderline of 47.9% for the September quarter.

“What we’re seeing with representation pricing close present is unprecedented,” said Apple CEO John Ternus, speaking to analysts connected the call. “As we said earlier successful the September quarter, we did spot higher representation costs arsenic compared to the June quarter, which were partially offset by the payment of carrying inventory and little costs connected definite non-memory components.”

He said that the institution expected “even higher representation costs” successful the December quarter, which would beryllium partially offset by terms increases implemented earlier this twelvemonth connected immoderate devices, including Mac and iPad astatine the extremity of June and iPhones successful September.

Ternus besides said that beyond December, Apple expects representation costs “continuing to increase.”

“As we said before, we bash judge we’ll spot a decreasing payment from the carry-in inventory connected representation implicit time,” helium noted, adding that the institution was expanding its purchases of this cardinal component. “As we enactment to amended supply, our manufacturing acquisition obligations person accrued by 33 cardinal dollars from June to the September quarter, which you’ll spot successful our yearly filing erstwhile it comes retired tomorrow.”

Apple besides brought COO Sabih Khan, who oversees the company’s proviso concatenation and manufacturing, onto the telephone to code questions astir memory. He reiterated the accrued acquisition obligations but did not regularisation retired aboriginal terms increases connected Apple devices.

The institution besides blamed proviso constraints for anemic iPad income successful the quarter. The iPad was 1 of the lone merchandise segments that didn’t grow, adjacent arsenic iPhone and Mac income bushed estimates. iPad gross was $6.2 billion, beneath analysts’ expectations of $6.7 billion. The fig was besides down 10% from the anterior year.