Amazon hikes device prices up to 60% citing memory costs

Amazon raised prices on many of its own devices by up to 60% overnight on 21 August, citing rising memory and storage component costs. The increases affect Echo speakers, Kindle e-readers, Fire TV streaming sticks, and eero routers, with no prior announcement Source: The Next Web. The company said it had absorbed the cost increases "for as long as we could" before adjusting pricing Source: TechCrunch.

Price changes

The steepest percentage increase hit the Echo Dot, which jumped from $49.99 to $79.99, a 60% rise Source: The Next Web. Other notable hikes include the Kindle (16GB) from $109.99 to $149.99, the Fire TV Stick 4K Max from $59.99 to $84.99, and the Echo Show 21 from $399.99 to $499.99 Source: ZDNET. The eero 7 three-pack rose from $349.99 to $399.99 Source: ZDNET. Ring cameras and the Echo Studio were not affected Source: The Next Web.

Industry context

Amazon joins Apple, Microsoft, and Roku in raising prices due to the global memory shortage, often called "RAMmageddon," driven by AI demand for DRAM and NAND flash Source: TechCrunch. Apple raised Mac and iPad prices in June, and Microsoft increased Xbox console prices in August Source: ZDNET. Roku raised streaming device prices by up to 60% in July Source: The Next Web.

Reactions and outlook

Gizmodo called the Kindle hikes "obscene," noting that even low-memory e-readers saw significant increases, suggesting Amazon is also factoring in product popularity and margins Source: Gizmodo. The memory shortage is expected to persist through 2027, with prices potentially stabilizing in 2028 Source: TechCrunch.