Apple stockpiles $11.1B inventory as supply constraints worsen

Apple is stockpiling inventory and bracing for severe memory shortages, outgoing CEO Tim Cook said on the company’s July 30, 2026, earnings call, as the generative AI boom drives steep demand for hardware components. The company reported its strongest June quarter ever, with iPhone sales up 22% and Mac sales up 29% from a year earlier, but Cook described the memory pricing as a “hundred-year flood.”

The constraints are hitting the advanced memory nodes used in Apple’s A-series and M-series processors, which power iPhones and Macs. Cook warned the impact from supply constraints will “increase significantly sequentially” because the supply chain has limited flexibility. The company is scrambling to secure components.

Inventory reached $11.1 billion, nearly double the $5.7 billion reported in September 2025, a break from Cook’s long-held strategy of minimizing on-hand inventory.

The company reluctantly raised prices on Macs and iPads in June 2026, joining Meta, Samsung, Microsoft, and Sony in adjusting prices amid component shortages.

For the July-September quarter, Apple forecasts revenue growth of 9% to 11% year over year, a slowdown from the roughly 16% growth of recent quarters. Apple stock fell 6% in after-hours trading following the report.

John Ternus, senior vice president of hardware engineering, is set to become CEO in September 2026, potentially facing a rough patch as the company navigates the supply challenges.