Amazon raises hardware prices up to 60%, citing memory shortage
This digest was compiled by AI from multiple sources — links to the originals are below.
Amazon raised prices on Fire TVs, Echos, Kindles, and Eeros by up to 60% over the weekend. The company attributed the increases to rising memory and storage component costs. The Echo Dot jumped from $49.99 to $79.99, according to price tracking sites.
Key Facts
- Amazon raised prices on Fire TVs, Echos, Kindles, and Eeros by as much as 60% over the weekend.
- The Echo Dot price rose 60% overnight from $49.99 to $79.99.
- Amazon said the consumer electronics industry is facing significant increases in memory and storage component costs.
- The company said it will continue to offer occasional promotions over the next year.
- Apple recently hiked its prices and introduced a device leasing program to offset higher costs.
Price Increases
Amazon raised prices on its hardware devices by up to 60% over the weekend. The increases affected Fire TVs, Echos, Kindles, and Eeros. The Echo Dot, one of Amazon's cheapest smart speakers, jumped 60% overnight from $49.99 to $79.99. Price tracking sites like CamelCamelCamel show the sharp uptick after prices had previously hovered much lower.
Company Response
Amazon told TechCrunch that the consumer electronics industry is facing significant increases in memory and storage component costs. The company said it absorbed the increases for as long as it could before adjusting pricing across its product lines. Amazon also said it will continue to offer occasional promotions to customers over the next year.
Industry Impact
The global memory shortage fueled by the AI boom, also known as 'RAMmageddon', is driving up the cost of producing devices. Companies are increasingly passing on the costs to their customers. Apple recently hiked its prices and introduced a device leasing program to let users pay off devices over time. The RAM shortage is expected to continue throughout 2027 before prices potentially crest and stabilize in 2028.
2 sources
Amazon raises hardware prices up to 60%, citing memory shortage
