Amazon devices in US get pricier: Echo, Kindle & more

Amazon has raised prices on several consumer electronics products, including Echo smart speakers, Kindle e-readers, Fire TV devices, and eero networking equipment. The company attributes the price increases to a surge in memory and storage component costs due to rising demand for memory chips, driven by the rapid expansion of artificial intelligence infrastructure.

For instance, the base Echo Dot has jumped from $49.99 to $79.99, while the 16GB Kindle has increased from $109.99 to $149.99. Additionally, the 16GB Kindle Paperwhite has risen to $199.99 from $159.99. The Echo Show 11 is now priced at $249.99, up from $219.99. Amazon's Fire TV Stick HD has gone up from $34.99 to $39.99, and the Fire TV Stick 4K Max has increased from $59.99 to $84.99.

Amazon's eero networking range has also seen price hikes: the eero 7 is now $399.99, up from $349.99, and the eero Pro 7 has increased to $799.99 from $699.99. However, Amazon has not raised prices on its Ring products. The increases are part of a broader industry trend, as Amazon is not alone in passing on these costs to consumers.

Apple and Microsoft have also raised prices for some of their devices, while PC makers such as Dell, HP, Lenovo, and Asus have adjusted prices or changed memory configurations. Amazon has chosen to raise prices rather than absorb the increased component costs, as it typically aims to keep its hardware affordable and accessible while still driving users towards its broader ecosystem.

The price hikes come as Amazon is significantly increasing its spending on AI infrastructure, with the company expecting capital expenditure to reach $220 billion in 2024, up from its earlier estimate of $200 billion. However, Amazon's AI infrastructure capacity may still fall short of demand, as CEO Andy Jassy indicated that the company may not have enough capacity to meet all expected demand in 2026 and 2027.

This creates a challenging situation for electronics companies, as the AI boom drives demand for computing infrastructure while also vying for the same components used in everyday consumer devices.