Amazon has raised prices on several of its first-party devices, including its Echo smart speakers and Fire TV line, making it the latest major technology company to increase consumer costs as memory chip shortages pressure industries across the economy.

The company applied the increases overnight across its hardware product line, according to a review by Fortune. The changes include:

• Echo Dot (base model): from $49.99 to $79.99
• Echo Show 11: from $219.99 to $249.99
• Kindle, 16 GB: from $109.99 to $149.99
• Kindle Paperwhite, 16 GB: from $159.99 to $199.99
• Fire TV Stick HD: from $34.99 to $39.99
• Fire TV Stick 4K Max: from $59.99 to $84.99
• eero 7 wireless mesh networking system: from $349.99 to $399.99
• eero Pro 7: from $699.99 to $799.99

Measured in percentage terms, the steepest increases fall on entry-level hardware: the Echo Dot rose 60%, the Fire TV Stick 4K Max about 42%, and the base Kindle about 36%, while the Kindle Paperwhite climbed 25% and the Echo Show 11, Fire TV Stick HD, and eero routers each rose roughly 14%. Notably, Amazon did not increase prices for its Ring products, the smart-doorbell business it acquired in 2018, even as it raised them for eero, the mesh-router maker it bought in 2019. The website Pocket-lint earlier reported on the Fire TV increases.

An Amazon spokeswoman, who confirmed the price increases, said in a statement that 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.” She added that the company aims to continue offering products at accessible prices and that Amazon will also offer promotions across its lineup throughout the year.

The moves come as companies big and small raise prices due to a memory chip shortage brought on by immense demand for AI compute. As memory suppliers have prioritized high-bandwidth memory for AI data centers, supply has tightened for the conventional DRAM and NAND flash that go into everyday gadgets, raising component costs across phones, laptops, and smart-home devices. In June, Apple was forced to raise prices for its Macs and iPads to account for the increased cost of memory chips, a move Chief Executive Tim Cook characterized as a “100-year flood on memory pricing.”

Microsoft also said recently that it will increase the price of its Xbox game consoles by $100 to $150, depending on the version, and that it will no longer sell Xbox consoles with 2 terabytes of memory, its highest-end configuration, according to Bloomberg. Dell, HP, Lenovo, and Asus have also raised prices or reduced the amount of memory in their products.

Amazon’s price increases are especially notable given the company’s reputation for low costs and cheap hardware. Amazon has long used aggressively priced devices as a way to put Alexa speakers, Fire TV streamers, and Kindle e-readers into as many households as possible, making the across-the-board increases a departure from that playbook. The move also comes as the company prepares for an upcoming fall event to show off its newest devices—the venue where it typically refreshes the very Echo, Fire TV, and Kindle lines that now carry higher prices.

In late July, Amazon Chief Executive Andy Jassy told investors that Amazon now expects to devote $220 billion this year to capital expenditures, up from its prior estimate of $200 billion, primarily to build and equip the data centers that power AI services, owing to higher memory costs. Even at the elevated level, however, Jassy said Amazon still won’t “have enough capacity to meet all the demand we have in 2026. And I believe this dynamic will also be true in 2027, too.” The company now sits on both sides of the memory squeeze—paying more for the chips inside its consumer gadgets while sharply expanding the capital budget for the AI data centers driving that demand.

The company’s cloud unit, Amazon Web Services, posted $42.2 billion in revenue in its second quarter, up 37% from $30.9 billion a year ago, marking its fastest growth in 18 quarters. Jassy called the results the fifth consecutive quarter of accelerated growth.

Source: Fortune