Amazon raises hardware prices by up to 60% due to memory shortage
Over the weekend, Amazon increased the prices of its hardware devices by as much as 60%, affecting products like Fire TVs, Echos, Kindles, and Eeros. The Echo Dot saw a notable price jump from $49.99 to $79.99. In response to inquiries, Amazon cited rising costs for memory and storage components due to industry-wide shortages driven by the AI boom. The global shortage of RAM—referred to as 'RAMmageddon'—is pushing up production costs across consumer electronics. Companies are increasingly passing these expenses on to consumers; Apple has also raised prices recently, introducing a device-leasing program in response. The memory shortage is expected to persist through 2027 before stabilizing by 2028. Amazon stated it would continue offering promotions over the next year but acknowledged that pricing adjustments were necessary after absorbing rising costs for as long as possible.
Topics: AI Amazon hardware memory shortage pricing