Apple inventory rises 154% amid escalating memory chip costs
Apple reported inventory levels of $14.5 billion for the fourth quarter, as the company prepares for sustained increases in memory component pricing.
Apple’s inventory levels expanded significantly in the fiscal fourth quarter, rising to $14.54 billion from $11.09 billion in the third quarter. This represents a 154.3% increase compared to the $5.72 billion reported in the same period last year. The company is actively stockpiling memory components to mitigate supply chain volatility.
The company projects a gross margin of 45% to 46% for the December quarter, down from the 47.9% reported in September. CEO John Ternus stated that memory pricing trends are currently unprecedented and that the company expects these costs to continue their upward trajectory in the coming months.
To manage these financial pressures, Apple implemented price adjustments on Mac, iPad, and iPhone models throughout the year. Additionally, the company has increased its manufacturing purchase obligations by $33 billion to secure essential hardware and address ongoing supply constraints.