RAMageddon Strikes Again: Amazon Raises Its Electronics Prices by Up to 60%
The e-commerce giant blames increases in component costs for the device price hikes.
Amazon has raised the prices of several popular electronics, including Kindles, Echos, and Fire TVs, by up to 60% due to a phenomenon known as "RAMageddon." This price increase is caused by "significant increases in memory and storage component costs," according to an Amazon spokesperson. The hardware component shortage has been ongoing, with the AI industry consuming the majority of the world's memory and storage supply.
As tech companies scramble to allocate remaining resources, the cost burden is being passed onto consumers.
Amazon's largest price hikes affected its most inexpensive electronics, making entry-level products less affordable. For example, the Echo Dot smart speaker, which used to cost $50, has now increased to $80, a shocking 60% price increase. Other base-level products, such as the Kindle starter kit and Fire TV Stick HD, saw price hikes of 36% and 14%, respectively.
Amazon spokesperson stated that they are still trying to find more affordable pricing options, but these hikes were necessary to account for hardware costs. They recently adjusted pricing across their product lines after absorbing these increases as long as possible. Interestingly, the $220 Echo Studio smart speaker and Roku, a direct competitor to Amazon's Fire TV streaming products, were not affected by the price hikes.
The RAMageddon's impact isn't limited to Amazon. Other companies, such as gamers, laptop manufacturers, and smart home providers, have also faced price increases due to the ongoing supply chain squeeze. Roku recently raised its prices by up to 60%, and Apple recently increased the price of its HomePod Mini smart speaker by 30%. It's evident that consumers are facing rising consumer tech prices across the board.
Written by urgent.news from CNET's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
