John Ternus’ First Major Stress Test as Apple CEO Is the Memory Cost Crisis

Apple CEO John Ternus holds the iPhone Duo during Apple’s “Surprise and Shine” event at the company's corporate headquarters, Apple Park, on September 9, 2026 in Cupertino, California." width="970" height="647" data-caption='Apple CEO John Ternus holds the iPhone Duo during his first keynote at Apple Park on Sept. 9, 2026. He is now working to secure component supplies and cut costs elsewhere as rising memory prices squeeze Apple’s profit margins. Benjamin Fanjoy/Getty Images'> John Ternus is trying to lock down Apple’s component supply as inflated memory costs test his first months as CEO. In Apple’s fiscal 2026 annual report released Nov. 3, the company outlined manufacturing purchase obligations of $89.7 billion, with $82.7 billion payable in the 12 months after Sept. 26. This is up from roughly $57 billion in obligations in the previous quarter.

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