Amazon Hikes Hardware Prices Amid Global Memory Shortage
Amazon has raised prices on its hardware devices by as much as 60% due to a shortage of memory and storage components. The price hikes affected products such as Fire TVs, Echos, Kindles, and Eeros. For example, the Echo Dot, one of Amazon's cheapest smart speakers, saw its price jump from $49.99 to $79.99 overnight.
According to Amazon, the company has absorbed memory and storage component cost increases for as long as it could before making the necessary price adjustments across its product lines. The company also stated that it will continue to offer promotions to customers over the next year.
The global memory shortage, fueled by the AI boom, is causing production costs for devices to skyrocket. As a result, companies are passing on these increased costs to their customers. Apple recently raised prices and introduced a device-leasing program to help offset the higher rates.
The RAM shortage is expected to continue through 2027 before potentially stabilizing in 2028.