Apple stockpiles inventory as it braces for ‘significant supply constraints’

Core Impact Points

• Apple's inventory has nearly doubled to $11.1 billion, a break from its long-held approach of minimizing inventory.
• The company is bracing for memory shortages, known as RAMageddon, which could impact iPhone and MacBook production.
• Apple's outgoing CEO Tim Cook warns of a 'hundred-year flood' on memory pricing, which is severely impacting the cost of producing devices.
• The company has raised prices on Macs and iPads due to supply constraints, and other companies like Meta, Samsung, Microsoft, and Sony have also done so.
• Apple is predicting revenue growth between 9% and 11% year over year, but this is lower than its previous growth rate of 16%.
• The supply struggles may continue under Apple's new CEO, John Ternus, who takes over in September.