Apple has built up inventory as it expects worsening shortages of advanced memory components, driven by AI-related demand for hardware. The constraints are raising production costs for iPhones, Macs and other devices, forcing the company to increase some Mac and iPad prices and potentially slowing its sales growth.

Inventory reached $11.1 billion, almost double the $5.7 billion reported last September, departing from Tim Cook’s usual emphasis on lean stock levels. Apple reported year-on-year June-quarter growth of 22% for iPhones and 29% for Macs, but forecast 9% to 11% revenue growth next quarter versus roughly 16% recently; its shares fell 6% after hours.