business
Apple's Inventory Jumps 31% in Quarter as Memory Chip Costs Climb
Apple's inventory jumped 31.1% in its fiscal fourth quarter as memory costs climbed.
Key points
- Inventory rose to $14.54 billion in the fiscal fourth quarter, up from $11.09 billion in Q3.
- Apple forecast a 45% to 46% gross margin for the December quarter, largely due to higher memory costs.
- iPad revenue was $6.2 billion, below analysts' expectations of $6.7 billion and down 10% from a year earlier.
Why it matters. Rising memory costs could pressure Apple's margins, though price increases on some devices are expected to partly offset them, the company said.
Apple's inventory rose from $11.09 billion in Q3 to $14.54 billion in Q4, a jump of 31.1%, according to earnings reported Monday. CEO John Ternus said memory pricing is 'unprecedented' and that Apple expects 'even higher memory costs' in the December quarter, partly offset by price increases. Apple's manufacturing purchase obligations rose by 33 billion dollars from June to the September quarter, while iPad revenue fell 10% to $6.2 billion.
Latest updates
Apple's Inventory Jumps 31% in Quarter as Memory Chip Costs Climb
Apple's inventory, particularly computer memory, grew sharply in its fiscal fourth quarter, according to earnings reported on Monday. Inventory rose from $11.09 billion in the third quarter to $14.54 billion in the fourth, a gain of 31.1%. Year over year, inventory grew 154.3% from $5.72 billion. Apple said unprecedented memory chip costs will continue to rise, which could pressure its profit margins and affect future device prices. During the earnings call, the company also warned of additional costs tied to its Siri AI features in the holiday quarter. Monday's report was the first under new chief executive John Ternus.