Amazon quietly hikes device prices as memory shortage bites

Amazon cited rising memory and storage component costs driven by a global chip shortage, as AI data centers consume a growing share of memory supply. Prices on Echo, Fire TV, Kindle, and Eero devices rose overnight on August 21, with some jumping as much as 60 percent, including the Echo Dot going from $49.99 to $79.99. Ring cameras and Echo Studio were unaffected. Anyone tracking how AI-driven chip demand ripples into consumer hardware costs can follow supply chain news on daily.dev.

Samsung expects the memory shortage to worsen through 2027 before stabilizing sometime in 2028, driven largely by AI data centers consuming chip supply. This has already pushed Amazon, Apple, Microsoft, and Roku to raise hardware prices, with Amazon also increasing its 2026 capital expenditure guidance to $220 billion partly due to memory costs. Buyers timing hardware purchases around chip supply trends can keep up with the story on daily.dev.