Amazon hikes hardware prices by 60 percent, blaming memory shortage

Amazon recently increased the prices of various hardware devices, including Fire TVs, Echos, Kindles, and Eeros, by up to 60 percent. Notably, the price of the Echo Dot, Amazon's most affordable smart speaker, jumped from $49.99 to $79.99 overnight. Price tracking sites, such as CamelCamelCamel, have documented this significant increase, which was previously much lower.

Amazon attributes this price hike to the escalating cost of memory and storage components in its products. The company noted that it had absorbed these cost increases for as long as possible, but it is now adjusting prices across its product range. Amazon also promised to provide occasional promotions to customers over the next year.

The global memory shortage, driven by the AI boom, is a significant factor behind the rising costs of device production. Consequently, many companies are passing on these increased expenses to their consumers. Apple, too, has raised its prices, attempting to mitigate the impact by introducing a device leasing program, enabling users to pay off their devices over time.

The RAM shortage is anticipated to persist until the end of 2027, after which prices may stabilize in 2028.