Apple stockpiles $11.1B inventory amid 'RAMageddon' supply crunch
Original: Apple stockpiles inventory as it braces for ‘significant supply constraints’
Why This Matters
AI-driven memory shortages are now materially disrupting Apple's supply chain strategy and pricing across the hardware industry.
Apple reported $11.1 billion in inventory — nearly double September 2025's $5.7 billion — as outgoing CEO Tim Cook warned of 'significant supply constraints' tied to AI-driven memory demand, with iPhone and Mac sales still growing 22% and 29% YoY in its 'strongest June quarter ever.'
Apple is aggressively stockpiling inventory to hedge against worsening memory shortages, a phenomenon analysts have dubbed 'RAMageddon.' Outgoing CEO Tim Cook described the situation as a 'hundred-year flood on memory pricing,' driven by surging demand for advanced memory components fueled by the generative AI boom. Apple's inventory hit $11.1 billion, nearly double the $5.7 billion recorded last September — a notable departure from Cook's long-standing philosophy of keeping inventory lean. Despite posting its 'strongest June quarter ever,' with iPhone revenue up 22% and Mac revenue up 29% year-over-year, Apple expects supply constraints to 'increase significantly sequentially.' The company has already 'reluctantly' raised prices on Macs and iPads, joining Meta, Samsung, Microsoft, and Sony in passing higher hardware costs to consumers. For the upcoming quarter, Apple guided for 9%–11% revenue growth, well below its recent ~16% run rate, triggering a 6% drop in after-hours stock trading. Cook stated the company will be 'scrambling on the supply side.' Incoming CEO John Ternus, Apple's current SVP of Hardware Engineering, is set to take over in September amid these headwinds.