H1: Amazon Raises Hardware Prices by Up to 60% Amid Memory Shortage

Over the weekend, Amazon substantially increased the prices of its electronic devices, with some models experiencing hikes of up to 60%.

This significant price surge affected a range of products including Fire TVs, Echo smart speakers, Kindle e-readers, and Eero routers. An especially notable example is the Echo Dot, one of Amazon’s most affordable smart speakers, which saw its price jump overnight from $49.99 to $79.99—a 60% increase. Price comparison websites like CamelCamelCamel highlight this sharp rise, which previously maintained much lower prices.

In response to inquiries from TechCrunch, Amazon issued the following statement: “The consumer electronics industry is experiencing considerable increases in the costs of memory and storage components. After attempting to absorb these costs for as long as possible, we have recently adjusted the prices across our product lineup.”

The company also announced that it plans to continue offering occasional promotional deals to customers throughout the upcoming year.

Amazon’s recent price increases exemplify the challenging environment for purchasing electronic hardware. The global shortage of memory, driven by the booming AI industry (often referred to as “RAMmageddon”), has led to rising production costs across a broad spectrum of devices. Consequently, manufacturers are increasingly passing these expenses onto consumers.

In a reflection of these market conditions, Apple recently raised its device prices and introduced a leasing program to allow customers to pay for their products over time, helping to offset the steep cost increases.

The shortage of RAM is expected to persist through 2027, with prices potentially reaching a peak and stabilizing only in 2028.