Apple’s inventory surges 154% as memory chip costs climb

Apple's inventory surged 154% to $14.5 billion as the company faces unprecedented memory chip cost increases that it expects to continue rising. The surge reflects Apple stockpiling components amid tightening supply and climbing prices for memory chips, a key cost input across its iPhone, iPad, and Mac product lines. The development raises questions about whether Apple will raise device prices or absorb the higher costs, which could pressure its industry-leading gross margins. Memory chip pricing has been driven by surging demand from AI data center buildouts, which has tightened supply for consumer device makers. Investors should watch Apple's upcoming earnings guidance for commentary on pricing actions, margin impact, and further inventory build.