Apple ended fiscal 2026 holding $10.4 billion worth of components it had not yet built into products, up from $2.1 billion a year earlier. That jump of nearly five times sits in the inventory note of Apple’s Form 10-K, filed with the SEC on November 3.
The same annual report adds a blunt new warning. Apple says memory and storage costs will keep getting worse, and that its own price increases may not be enough to cover them.
Apple’s 10-K shows component inventory rose from $2.1 billion to $10.4 billion in one year
Apple splits its inventory into two buckets. Finished goods are iPhones, Macs and other products ready to sell. Components are the chips, memory, displays and other parts waiting to be assembled. Here is how both moved, in Apple’s own numbers:
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| Inventory | Sept. 27, 2025 | Sept. 26, 2026 | Change |
|---|---|---|---|
| Components | $2.12 billion | $10.45 billion | Up 392% |
| Finished goods | $3.59 billion | $4.09 billion | Up 14% |
| Total inventories | $5.72 billion | $14.54 billion | Up 154% |
Finished goods barely moved. The parts pile did all the work. Total inventory also beat the $7.29 billion Apple reported at the end of fiscal 2024 in its prior annual report, so this is not just a rebound from an unusually lean year.
The cash flow statement shows the same story from another angle. Building up inventory used $8.9 billion of Apple’s operating cash in fiscal 2026. A year earlier, inventory changes freed up $1.4 billion.
Apple does not say in the 10-K why it bought so many parts. It does say it “orders components and builds inventory in advance of product announcements and shipments.” Apple’s fiscal year closed on September 26, a few weeks before iPhone Duo pre-orders opened in October.
Apple’s manufacturing purchase commitments jumped 60% to $89.7 billion
The inventory on Apple’s books is only part of the picture. Apple also reports what it has promised to buy from suppliers and contract manufacturers. As of September 26, 2026, those manufacturing purchase obligations reached $89.7 billion, with $82.7 billion due within 12 months.
A year earlier, the same line was $56.2 billion. That is a $33.5 billion increase in money Apple has already committed to parts and assembly. Accounts payable grew too, from $69.9 billion to $82.3 billion, and vendor non-trade receivables rose from $33.2 billion to $39.9 billion.
Put simply, Apple is buying more parts, owing suppliers more and locking in more future orders than it did a year ago, all at once.
Apple’s 10-K now warns that memory and storage costs will intensify
Apple’s fiscal 2025 annual report did not mention memory at all. The fiscal 2026 version raises it in the business overview, the risk factors and the margin discussion. The key passage reads:
“The Company is experiencing supply constraints and rising costs driven by industry-wide supply-demand imbalances for key components, including advanced semiconductors, memory and storage. The Company expects these trends to intensify for memory and storage components.”
Apple then goes further. It writes that “actions, such as price increases, that have been and may in the future be taken by the Company may not effectively mitigate these negative impacts, and may also reduce demand for the Company’s products.” That is Apple confirming in a legal filing that it has already raised prices in response, and that it may do so again.
Memory costs have not crushed Apple’s margins yet. Products gross margin rose to 39.3% from 36.8%, which Apple credits to “product mix and tariff refunds, partially offset by higher costs, including memory.” Executives spent much of the fourth-quarter earnings call on the same memory problem.
What Apple’s parts stockpile and memory warning mean if you plan to buy a Mac or iPhone
A big pile of components bought earlier gives Apple a cushion. Parts already sitting in inventory do not get more expensive when memory prices climb. But the 10-K says the squeeze will intensify, and Apple’s $89.7 billion in purchase commitments will be priced at whatever suppliers charge over the next year.
If you are shopping for a Mac or iPhone with more RAM or storage, the filing gives you a clear signal. Apple has already used price increases, it expects memory costs to rise further, and it calls more increases possible. Storage upgrades already carry a steep markup. Current configurator prices are the ones you can count on.
One more number from the filing shows Apple is not adding people to match its spending. Apple had about 167,000 full-time equivalent employees at the end of fiscal 2026, up from roughly 166,000 a year earlier.
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