theSIGNAL TECHNOLOGY
3 November 2026
"Scarcity, not abundance, is what teaches a market what things are truly worth."
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Photo: Umberto / Unsplash
Rows of memory chips on a circuit board, the component now driving up device costs worldwide.
📦
154.3%
Year-on-year rise in Apple's inventory, to $14.54 billion
Discuss
  • Why might a company known for lean supply chains choose to stockpile components, and what risks does that strategy carry?
  • Apple has raised prices on several devices already; how far should companies pass rising component costs on to customers?
Technology

Apple Is Hoarding Memory Chips as Prices Soar

Apple's inventory has more than doubled in a year, revealing how a global scramble for computer memory is reshaping even the world's richest hardware company.

In a single quarter, Apple's warehouses swelled by $3.45 billion. Inventory rose from $11.09 billion to $14.

54 billion between the June and September quarters, and it now stands 154% above its level a year earlier. For a company famous for tight, almost surgical supply chains, this is an unusual sight: Apple is stockpiling. The reason, according to CEO John Ternus, is computer memory. Speaking to analysts after the earnings release, he described current memory pricing as unprecedented and warned that costs will climb again in the December quarter and keep rising beyond it.

The pressure is already visible in the accounts. Apple's gross margin was 47.9% in the September quarter, but the company expects it to fall to between 45% and 46% in the next one, a drop it largely blames on memory. Hoarding is both a shield and a bet.

Chips bought earlier at lower prices have cushioned the blow, yet Ternus admitted that this benefit will fade over time. Apple has therefore committed to buying far more: its manufacturing purchase obligations grew by $33 billion in three months. Price rises on Macs, iPads and iPhones have helped, and operations chief Sabih Khan did not rule out more. The costs are not only financial.

//
What we're seeing with memory pricing right now is unprecedented.
John Ternus, CEO of Apple
Technology

Ukraine's Pocket Receiver Watches the Watchers

A Kyiv startup, CODE380, sells a ten-ounce receiver that lets Ukrainian soldiers watch live video from Russian drones, because those drones broadcast it unscrambled. Units can see a drone's course and its pilot's target before impact. It also tracks the new frequencies Russia's Molniya drones adopted in June. Yet the advantage looks fragile. Digital video could blind such devices, and some Molniyas reportedly use Nvidia chips and emit nothing.…
  • If drones stop transmitting and guide themselves, what defences remain for soldiers on the ground?
Technology

Google Says Android Maker Built Botnet

Somewhere in a living room, a cheap Android TV box was streaming a film while quietly working for criminals. Google says Shenzhen-based Videostrong Technology planted a backdoor in 1.3 million devices, then sold access to affiliates for ad fraud and proxy networks. Google has banned the firm from certified Android production.…
  • If manufacturers can hide malware before sale, can consumers ever truly trust cheap connected devices?
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theSIGNAL IN THE LAB
1VOCABULARY
stockpilingunprecedented
cushioned the blowpurchase obligationsbackdoor
ad fraudroom to manoeuvre
2GRAMMAR FOCUS
Relative clauses — defining vs non-defining with commas
Defining relative clauses identify which person or thing we mean and take no commas; non-defining clauses add extra information and are separated by commas, and 'that' cannot be used in them. 'Whose' shows possession, and 'where' refers to places.
which · that · who · whose · where · whom · when
  1. Apple's inventory, rose to $14.54 billion in the September quarter, is now 154% higher than a year earlier.
  2. John Ternus, spoke to analysts after the earnings release, called memory pricing unprecedented.
  3. The chips Apple bought earlier at lower prices have helped to protect its margins.
  4. Smaller manufacturers, buying power is far weaker than Apple's, may have little room to manoeuvre.
  5. Weak iPad sales, Apple blamed on supply constraints, reached only $6.2 billion.
  6. Cupertino, Apple is headquartered, is far from the factories that depend on memory chips.
3IDIOMS
Define each idiom in your own words. Then write one in a sentence of your own.
  1. to cushion the blow
  2. to have room to manoeuvre
  3. a double-edged sword (a shield and a bet)
  4. to slip past (someone) / to slip through the net
  5. to be in the same boat
4CRITICAL THINKING
All three stories involve organisations placing trust in hidden systems: supply contracts, certified suppliers, and unencrypted signals. Choose one story and argue where the greatest vulnerability lies, and who should be responsible for fixing it. What evidence from the articles supports your view, and what information is still missing?
5CREATIVE · HEADLINES
Write a headline for the top story in each of the following styles. One line each, no explanation:
  • TABLOID NEWSPAPER
  • LUXURY MAGAZINE
  • ACTIVIST BLOG
6WRITING
Write a short paragraph (80-100 words) explaining how a cheap smart TV box could end up being used by criminals without its owner knowing. Use at least two of the idioms from this page.
7DEGREES OF EXTREMITY
Complete each ladder from mild to strong.
  • unusual→→
  • rise→→
  • drop→→
  • fragile→→
  • worried→→
  • noticeable→→
8SPEAKING
  1. Would you buy a very cheap smart device from an unknown brand?
  2. Which matters more to you: low prices or guaranteed security?
  3. Should governments punish companies that sell devices with hidden backdoors?
  4. How has war changed the way ordinary technology is used?