{
  "id": 16729099,
  "title": "Amazon weighed ‘difficult trade-offs’ as memory costs squeezed its devices business, internal document shows",
  "url": "https://urgent.news/2026/10/27/amazon-weighed-difficult-trade-offs-as-memory-costs-squeezed-its",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-27T09:00:04.000Z",
  "source": {
    "name": "Business Insider",
    "slug": "business-insider",
    "url": "https://www.businessinsider.com/amazon-alexia-memory-chip-costs-losses-2026-10"
  },
  "original_language": "en",
  "account": "Amazon's devices and services team faced \"difficult trade-offs\" as rising memory costs squeezed the company's hardware business, according to an internal document obtained by Business Insider. Amazon unveiled a series of new devices, including Alexa tablets and AI wearables, but the company is grappling with a projected $612 million gross loss for its first-party devices business this year. The document reveals that Amazon is seeking additional revenue from enterprise sales, licensing, and ads to offset the impact of memory cost increases on its devices' profitability. The company is also expanding its consumer hardware lineup, despite the pressure from surging memory chip prices. Over the past year, Amazon has raised prices on various products, including Echo speakers, Kindle e-readers, and Fire TV devices. The company is investing heavily in AI data centers to support its growing Alexa+ ecosystem, which is projected to cost nearly $1.7 billion in AWS cloud costs by 2026.",
  "summary": "Amazon forecast a $612 million gross loss for its own devices as rising memory costs squeeze hardware margins, internal document shows.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}