Apple is preparing for a period of tighter component availability as the global demand surge around generative AI continues to push up memory prices. The company says advanced memory used in its Apple silicon chips is becoming harder to secure, adding pressure across iPhone and Mac production.
In its latest quarter, Apple described the period as its strongest June quarter ever, with iPhone sales up 22% and Mac sales up 29% year over year. Even so, CEO Tim Cook said the company expects supply constraints to intensify in the coming months because flexibility in the supply chain is limited.
One clear sign of that caution is Apple's inventory level, which reached $11.1 billion, nearly double the figure reported a year earlier. The move stands out for a company long known for keeping stock lean and tightly managed.
Cook also noted that Apple had already raised prices on Macs and iPads last month, reflecting the broader impact of rising memory costs across the hardware industry. The company now expects revenue growth of 9% to 11% for the next quarter, below its recent pace, as it works through the supply challenge.
As John Ternus prepares to take over as CEO in September, Apple enters a new phase shaped by both strong demand and a more complex hardware landscape. The coming months may help define how premium tech brands adapt to a world where AI-driven demand reshapes manufacturing priorities.
