Apple Commits More Money to Memory Chips Amid Supply Squeeze
Apple raised its manufacturing purchase obligations to $89.7 billion, according to the Wall Street Journal, abandoning its flexible approach to buying chips.
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what happened
According to the Wall Street Journal, Apple told analysts three times during its earnings call that it had raised its manufacturing purchase obligations by $33 billion. The company cited a sharp rise in memory prices, which CEO John Ternus described as unprecedented. Executives gave no details, but analysts suspect that a large part of the increase locks up memory chip supply for the longer term.
In its annual filing published on Tuesday, Apple said the figure stood at $89.7 billion at the end of the fiscal year. That is the highest level in the company's history, though relative to the size of its business it is not unusual. The amount equals about 132 days of production costs, above the average of around 100 days since 2016 but below the 137-day peak in September 2022.
why it matters
Apple's move away from its long-standing flexible purchasing model means it takes on more commitments and may pay more for memory. For investors, it signals rising cost pressure at the device maker and a memory market that remains tight.
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- Apple Ramps Up Commitments to Combat Memory Crunch — WSJ, 3 November 2026 at 19:50 UTC
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