Apple Stockpiles Inventory as It Braces for Supply Constraints

Apple is evidently worried enough about supply shortages to report $11.1 billion in inventory, which is nearly double the $5.7 billion reported last September. This massive accumulation marks a notable break from Cook’s long-held supply chain strategy, which has traditionally emphasized minimizing the amount of inventory Apple keeps on hand.

These ongoing constraints have led Apple to reluctantly raise the price of Macs and iPads last month, Cook added. Other major hardware companies that have also implemented price increases include Meta, Samsung, Microsoft, and Sony.

Stock photo for illustration only, not from the actual event

For the upcoming quarter, Apple is predicting year-over-year revenue growth between 9% and 11%. However, over the last several quarters, the company has consistently maintained about 16% year-over-year growth. Naturally, this slowdown worries investors, causing Apple stock to drop 6% in after-hours trading.