Apple warns iPhone and Mac supply will get even tighter… expands inventory to $11.1 billion ahead of supply crunch

Apple said memory shortages and rising component demand from AI are likely to tighten supply of the iPhone, Mac, and iPad next quarter.

Inventory rose to $11.1 billion, but the company warned that exchange-rate pressure and supply constraints could weigh on earnings.

iPhone and Mac revenue increased, while iPad sales fell and services revenue also declined quarter over quarter.

Investors are pricing in the risk, lowering expectations for Apple’s near-term performance.