Apple Inventory Surges 154% Year-over-Year Amid Rising Memory Chip Costs
Apple reported a significant surge in inventory during its fiscal fourth quarter, rising to $14.54 billion from $11.09 billion in the previous quarter. On a year-over-year basis, inventory grew by 154.3%. This stockpiling is largely driven by unprecedented increases in memory chip pricing, which management expects to continue impacting margins through the December quarter and beyond. To mitigate these rising component costs, Apple has increased its manufacturing purchase obligations by $33 billion since June. While higher memory prices are expected to weigh on gross margins—forecasted at 45% to 46% for the upcoming December quarter—the company is leveraging previous device price increases on Mac, iPad, and iPhone to offset these pressures. Additionally, supply constraints contributed to a decline in iPad revenue, which fell 10% year-over-year to $6.2 billion.
Tickers: $AAPL
Topics: gross margin inventory growth memory costs purchase obligations supply chain
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