Apple inventory surged 154.3 percent year-over-year in the fiscal fourth quarter as supply chain stockpiling accelerated due to rising expenses for computer memory, according to TechCrunch reports. The company disclosed the financial figures during an earnings call on Monday, pointing to component pricing pressures that also impacted hardware forecasts.
Key takeaways
- Apple inventory climbed from $5.72 billion in the fourth quarter of 2025 to $14.54 billion in the fourth quarter of 2026.
- CEO John Ternus described current memory pricing trends as unprecedented during a call with analysts.
- Manufacturing purchase obligations jumped by $33 billion between June and the September quarter.
- Supply constraints led to weak iPad sales, with revenue dropping 10 percent from the prior year to $6.2 billion.
How are apple memory chip costs affecting inventory?
Stockpiling computer memory pushed the tech giant's total inventory from $11.09 billion in the third quarter to $14.54 billion in the final period of the fiscal year. This marked a 31.1 percent sequential increase and contributed to a massive 154.3 percent annual jump compared to the same period in 2025.
During the discussion with analysts, CEO John Ternus explained that pricing conditions for memory components remain extraordinary. While carrying older inventory and lower prices on other hardware parts helped cushion the blow during the September quarter, executive leadership anticipates even greater expenses ahead.
What to expect from apple inventory surge and pricing?
Chief Operating Officer Sabih Khan joined the discussion to field questions regarding the supply chain and manufacturing operations. Khan pointed out that purchase obligations grew by $33 billion over the course of the quarter, and he refused to rule out future price hikes on hardware items.
The company already raised prices on Mac and iPad devices at the end of June, followed by iPhone adjustments in September. Gross margin for the December period is projected to land between 45 and 46 percent, down slightly from the 47.9 percent reported for the September quarter.
Why it matters
Consumers and analysts closely monitor these hardware supply adjustments because component expenses directly influence retail gadget pricing. Even though iPhone and Mac sales surpassed projections, supply limits dragged down iPad revenue below analyst targets of $6.7 billion. With manufacturing purchase commitments escalating and memory expenses climbing further, shoppers may encounter additional retail price adjustments on future Apple hardware.
Frequently asked questions
Apple increased its stockpiling of inventory, particularly computer memory, to combat rising component costs and secure supply chains.
Inventory grew by 154.3 percent year-over-year, rising from $5.72 billion in the fourth quarter of 2025 to $14.54 billion in the fourth quarter of 2026.
CEO John Ternus told analysts that current memory pricing is unprecedented and that the company expects even higher costs in the December quarter.
Supply constraints resulted in weak iPad sales, making it one of the few product segments that did not grow. iPad revenue reached $6.2 billion, falling short of the $6.7 billion expected by analysts and dropping 10 percent year-over-year.
COO Sabih Khan did not rule out future price increases on Apple devices, following previous price adjustments made to Macs and iPads in June and iPhones in September.
Based on reporting by TechCrunch. Read the original article
