Apple inventory rises sharply as memory chip costs climb
Apple reported a significant surge in its inventory levels during the fiscal fourth quarter due to rising memory chip costs.
Inventory growth reaches record levels
The company increased its total inventory from $11.09 billion in the third quarter to $14.54 billion in the fourth quarter. This represents a quarterly increase of 31.1% and a year-over-year growth of 154.3% compared to the same period in 2025. Stockpiling particularly affected computer memory components during this reporting period.
CEO explains pricing pressures
Apple CEO John Ternus described current memory pricing as unprecedented while speaking to analysts on a recent earnings call. He noted that higher costs in the December quarter would be partially offset by price increases already implemented on Macs, iPads and iPhones. The executive stated that the company expects memory costs to continue increasing beyond the current quarter.
Margin outlook remains strong
Apple forecast a gross margin between 45% and 46% for the December quarter despite the rising component expenses. The actual gross margin reported for the previous September quarter stood at 47.9%. Management indicated that carrying inventory helped lower costs on certain non-memory components earlier in the year.
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