Apple Just Stockpiled $10 Billion of Parts While Warning Memory Prices Are 'Unprecedented.' Should Investors Worry?

Apple has accumulated $10.4 billion in component inventory and $82.7 billion in supplier obligations within 12 months as memory prices reach unprecedented levels. CEO John Ternus warned costs will continue climbing, causing gross margins to decline from 47.9% to 45-46% in the December quarter. Despite margin pressure, Apple's strong demand (12% revenue growth to $114.5 billion) and massive cash reserves allow it to secure parts ahead of smaller competitors, positioning it to weather the shortage better than rivals.