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Amazon hikes hardware prices by 60 percent, blaming memory shortage
Yahoo Finance • • general
Key Points:
- Amazon has raised prices on its hardware devices, including Fire TVs, Echos, Kindles, and Eeros, with some increases reaching up to 60%, such as the Echo Dot rising from $49.99 to $79.99.
- The company attributed the price hikes to significant increases in memory and storage component costs, which it had absorbed for as long as possible before adjusting prices.
- Amazon plans to offer occasional promotions throughout the next year despite the overall price increases.
- The price surge reflects a broader industry trend driven by a global memory shortage linked to the AI boom, causing manufacturers to pass higher production costs onto consumers.
- Similar price increases have been seen from other tech companies like Apple, which has introduced device leasing programs to help customers manage rising costs.
