Apple Dramatically Increases Reserves Due to Memory Component Shortages

The rapid development of artificial intelligence technologies and the surge in demand for hardware are causing serious problems in the global technology market. According to ixbt.com, Apple is facing an unprecedented increase in memory prices, which is affecting the production costs of its devices. This situation is expected to lead to serious disruptions in the supply chain in the future, reports Techcrunch .

During the latest financial reporting period, Apple recorded positive figures, declaring it the strongest June quarter in its history. In particular, sales of iPhone and Mac computers exceeded expectations, growing by 22 and 29 percent respectively compared to the same period last year. However, despite this success, management expressed concern that the memory shortage, dubbed RAMageddon, could intensify.

Supply Chain Issues and Production

The company's primary challenge is securing a guaranteed supply of advanced memory nodes used in Apple Silicon chips that power A-Series and M-Series processors in iPhone and Mac devices. With high demand currently persisting, the limited flexibility of the supply chain is expected to significantly amplify the negative impact of the shortage.

To prevent a potential crisis, Apple has abandoned its traditional strategy. The company, which usually tries to keep inventory volumes to a minimum, has this time accumulated $11.1 billion in inventory. For comparison, in September of last year, this figure stood at $5.7 billion, indicating that reserves have been nearly doubled.

Price Increases and Market Reaction

Such an acute shortage situation has inevitably affected consumers as well. Last month, the company decided to forcibly raise prices for Mac and iPad devices. Other major tech giants such as Meta, Samsung, Microsoft, and Sony have also been forced to increase the prices of their devices.

For the upcoming quarter, Apple forecasts revenue growth of 9 to 11 percent. Meanwhile, over the past few quarters, this figure had steadily remained around 16 percent on a 12-month basis. The slowdown in financial progress alarmed investors, and Apple shares fell 6 percent after trading closed.

The new leader, who will transition from Senior Vice President of Hardware Engineering to Chief Executive Officer in September, may face a difficult period. Nevertheless, experts emphasize that this problem is not unique to Apple and serves as a test for the entire industry.