Apple is increasing its stock of key components as it prepares for another rise in memory prices. The technology giant reported a sharp increase in inventory during its latest financial quarter, showing how it is preparing for higher costs and possible supply limits.
The company’s inventory reached $14.54 billion in the fourth quarter of its 2026 financial year. This was a 31.1 percent increase from the $11.09 billion recorded in the third quarter.
The yearly increase was even greater. Apple held $5.72 billion in inventory during the same quarter in 2025. The latest figure represents a rise of 154.3 percent in just one year.
The growing stockpile comes as memory prices continue to rise across the technology industry. Computer memory is an important part of Apple’s products, including iPhones, iPads and Mac computers. Higher costs for these parts can affect production expenses and reduce the company’s profits.
Apple has already warned that rising memory prices will put pressure on its financial results in the coming months.
The company expects its gross margin to reach between 45 percent and 46 percent in the December quarter. This would be lower than the 47.9 percent margin it reported for the September quarter.
Chief Executive John Ternus discussed the issue during Apple’s earnings call with financial analysts. He described the current memory market as highly unusual.
“What we’re seeing with memory pricing right now is unprecedented,” Ternus said.
He explained that Apple had already faced higher memory costs in the September quarter than in the June quarter. However, the company managed to reduce some of the pressure by using components it had purchased earlier at lower prices.
Lower costs for certain non-memory parts also helped balance the increase. This allowed Apple to protect part of its profit margin despite the rising price of memory.
However, Ternus warned that the situation could become more difficult in the December quarter. He said Apple expected memory costs to increase even further during that period.
The company hopes to manage some of the pressure through price increases introduced earlier this year. Apple raised prices on some Mac and iPad products at the end of June. It also increased prices on certain iPhone models in September.
These changes may help cover some of the higher production costs. However, the company has not ruled out further pressure on its profits if memory prices continue to climb.
Ternus also said memory costs were expected to keep rising beyond December. This means Apple may have to deal with higher expenses for a longer period.
The company has gained some protection from its existing inventory. By purchasing memory before prices rise, Apple can use older stock instead of buying every component at current market rates.
However, this benefit will gradually become smaller. Ternus said the positive effect of holding older memory inventory would decline over time.
Apple is now increasing its purchases of memory to support production and improve supply. Ternus said the company’s manufacturing purchase obligations had grown by $33 billion between June and September.
He added that the increase would be included in Apple’s annual filing, which was due to be released the following day.
The higher purchase commitments show how much Apple is spending to secure important parts for future production. They also reflect the company’s efforts to reduce the risk of supply problems.
Apple Chief Operating Officer Sabih Khan also joined the earnings call to discuss the issue. Khan oversees the company’s supply chain and manufacturing operations.
He confirmed the increase in manufacturing purchase obligations and answered questions about the supply of memory components.
However, Khan did not rule out more price increases for Apple devices. His comments leave open the possibility that customers could pay more if component costs continue to rise.
Memory has become a major cost concern for technology companies. These components are used in smartphones, computers and many other electronic products. When prices rise, manufacturers must decide whether to absorb the extra costs or pass them on to customers.
Apple’s growing inventory suggests that it is trying to prepare for these market changes. Its larger stockpile may help protect production in the short term, but it cannot remove the pressure of rising prices forever.
Investors will now watch how the company handles its supply needs and protects its profit margins. Apple’s ability to manage memory costs could play an important role in its financial performance over the next several quarters.
