Source: Bloomberg
Summary
Apple’s inventory levels have surged to a record $11.1 billion, nearly double the $5.7 billion reported last September, as the company grapples with supply chain disruptions.
Our Reading
The announcement sounds ambitious.
Apple’s inventory levels are up, way up. The company is sitting on a record $11.1 billion in inventory, almost double what it had last year. This is what happens when you can’t make enough iPhones. Apple’s supply chain woes are real. Just another innovative way to say “we can’t keep up with demand”.
Supply Chain Strains
It seems like just yesterday that Apple was bragging about its “just in time” manufacturing process. Now, it’s struggling to keep up with demand.
Inventory Levels Skyrocket
$11.1 billion is a lot of unsold iPhones. You have to wonder what Apple plans to do with all that inventory. Maybe they’ll just hold onto it until the next big thing comes along.
Disruptions and Delays
Supply chain disruptions are nothing new, but Apple’s woes are particularly noteworthy. The company is known for its tight control over its manufacturing process. Guess that’s not working out so well right now.
Ambitious Goals
Despite its supply chain struggles, Apple is still promising to deliver new products and features. We’ll believe it when we see it.
The New Normal
It’s starting to look like supply chain disruptions are the new normal. Maybe Apple should just get used to it. After all, $11.1 billion in inventory is a lot to work through.
Author: Evan Null
