Apple’s inventory rises 154% amid climbing memory chip costs

Apple’s inventory increased significantly in its fiscal fourth quarter, rising from $11.09 billion in Q3 to $14.54 billion in Q4, a 31.1% jump, and up 154.3% year-over-year from $5.72 billion in Q4 2025, TechCrunch reported.

The surge was driven largely by rising costs of computer memory chips, which Apple CEO John Ternus described as "unprecedented," with expectations for even higher costs in the December quarter.

Apple’s gross margin forecast for the December quarter is 45% to 46%, down from 47.9% in September, due in large part to increased memory costs, partially offset by price increases on some devices earlier in the year.

Ternus noted that while carrying inventory has helped offset some cost increases, the benefit from inventory will decrease over time as memory prices continue to rise.

Apple has increased its manufacturing purchase obligations by $33 billion from June to September as it works to improve supply chain resilience, according to the company’s filings.

The company’s COO Sabih Khan, who oversees the supply chain, is involved in managing these supply challenges as Apple adapts to the higher memory chip costs.