The key facts

  • Apple's inventories grew from $11.09 billion in Q3 to $14.54 billion in Q4 (+31.1% quarter over quarter, +154.3% year over year)
  • Gross margin guidance for the December quarter is 45–46% versus 47.9% in the September quarter
  • Purchase obligations rose by $33 billion from the June to the September quarter; iPad revenue fell 10% due to component shortages

Memory inventory tripled over the year

Apple continued to build up its component inventories, primarily computer memory, in the fiscal fourth quarter, according to filings published on Monday. As TechCrunch reports, the company's inventories grew from $11.09 billion in the third quarter to $14.54 billion in the fourth — an increase of 31.1% quarter over quarter. Year over year, the growth is even more pronounced: up 154.3% from $5.72 billion in the fourth quarter of 2025. The third-quarter figure of $11.09 billion is also confirmed by an earlier TechCrunch report on inventory accumulation amid expectations of severe supply constraints.

Memory prices are squeezing margins

The company attributed its gross margin guidance of 45–46% for the December quarter mainly to the impact of more expensive memory; in the September quarter, the margin was 47.9%. “What we are seeing now with memory prices is unprecedented,” said Apple CEO John Ternus on a call with analysts. According to him, the increase in memory costs in the September quarter compared with the June quarter was partially offset by the benefit of accumulated inventories and lower prices for certain non-memory components.

What's next: purchases, prices and the iPad

Ternus warned that memory costs will be “even higher” in the December quarter and, in his assessment, will continue to rise after December. A partial counterbalance will come from the price increases introduced earlier this year: for Macs and iPads at the end of June, and for iPhones in September. Chief Operating Officer Sabih Khan, who answered questions about memory, confirmed that purchase obligations grew by $33 billion from the June to the September quarter (this figure is expected to appear in the annual report) and did not rule out further price increases for Apple devices. Another consequence of the shortage: iPad sales in the quarter came in at $6.2 billion — below analysts' expectations of $6.7 billion and 10% lower than a year earlier; the company attributed this to limited supply, while iPhone and Mac sales exceeded estimates.