Amazon hikes hardware prices by 60 percent, blaming memory shortage

In Brief Posted: 12:54 PM PDT · August 24, 2026 Image Credits: Amazon Lucas Ropek Amazon hikes hardware prices by 60 percent, blaming memory shortage Over the weekend, Amazon significantly raised the prices of its hardware devices, jacking them up by as much as 60 percent in some cases. The price explosion impacted Fire TVs, Echos, Kindles, and Eeros. One egregious example that’s been cited is that of the Echo Dot, one of Amazon’s cheapest smart speakers, the price of which jumped 60% overnight, from $49.99 to $79.99. Price tracking sites like CamelCamelCamel show the stark uptick, which has previously hovered much lower. When reached for comment by TechCrunch, Amazon shared the following: “The consumer electronics industry is facing significant increases in memory and storage component costs. After absorbing these increases for as long as we could, we recently adjusted pricing across our product lines.” The company also said that it would continue to offer occasional promotions to customers over the course of the next year. Amazon’s price hikes reinforce the reality that it’s a terrible time to buy hardware. The global memory shortage fueled by the AI boom (also known as “ RAMmageddon “) is driving up the cost of producing devices of all stripes. As a result, companies are increasingly passing on the costs to their customers. In a sign of the times, Apple recently hiked its prices , and has sought to offset the steep new rates by introducing a device leasing program , thus allowing users to pay off their devices over time. The RAM shortage is expected to continue throughout 2027 before prices potentially crest and stabilize in 2028. Topics AI , Amazon , echo , Fire TV , Hardware , hardware October 13 – 15 San Francisco In less than 48 hours, your chance to save up to $300 on your tickets will end! REGISTER NOW Newsletters See More Subscribe for the industry’s biggest tech news TechCrunch Daily News Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility TechCrunch Mobility is your destination for transportation news and insight. Startups Weekly Startups are the core of TechCrunch, so get our best coverage delivered weekly. StrictlyVC Provides movers and shakers with the info they need to start their day. No newsletters selected. Subscribe By submitting your email, you agree to our Terms and Privacy Notice . Related TechCrunch Disrupt 2026 Amjad Masad, CEO and co-founder of Replit, joins the Disrupt Stage at TechCrunch Disrupt 2026 TechCrunch Events 46 seconds ago TechCrunch Disrupt 2026 Apply now to host a Side Event at TechCrunch Disrupt 2026 TechCrunch Events 11 minutes ago AI Instinct’s powerful AI assistant is raising privacy and security concerns Sarah Perez 2 hours ago Latest in Hardware In Brief Amazon hikes hardware prices by 60 percent, blaming memory shortage Lucas Ropek 15 seconds ago Gadgets Linkdaze’s smart calendar is built to run a household, not just track a schedule Lauren Forristal 1 day ago Hardware Flock CEO calls for ‘compromise’ as surveillance company faces growing backlash Anthony Ha 1 day ago