Amazon devices are the latest casualties of the memory shortage price hikes
Amazon has raised prices across much of its Echo, Fire TV, Kindle and eero range, citing higher costs for memory and storage components. The increases show how the continuing chip shortage is affecting consumer technology prices, with Amazon joining companies such as Apple and Roku in passing some of those costs on to customers.
The largest proportional rise is for the Echo Dot, up 60% from $50 to $80, while the Echo Show 21 rose from $400 to $500. The standard 16GB Kindle increased from $110 to $150 and the Kindle Paperwhite from $160 to $200; eero three-packs also rose by $50 to $100. Fire TV devices saw smaller rises, Ring products were unchanged, and Amazon said it would continue to offer promotions.
- Amazon raises prices across Echo, Kindle, Fire TV and eero devices.
- Echo Dot price rises 60%, from $50 to $80.
- Higher memory and storage costs are blamed.
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Amazon sells a range of connected devices, including Echo speakers and displays, Fire TV streaming devices, Kindle e-readers, eero Wi-Fi equipment and Ring security products. Many rely on memory and storage chips to run software and store data, and their prices can be affected by the cost of those components.
A shortage of memory chips has pushed up costs for technology companies. Amazon is among several firms, including Apple and Roku, that have raised prices on some products as they face higher component costs. Changes vary across Amazon’s range, and the company says it will continue to offer promotions.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Amazon's price increases reflect genuine supply chain cost pressures affecting all manufacturers, and passing these through to consumers represents economically sound practice rather than corporate greed. Absorbing all component cost increases would erode profitability and constrain future investment in product innovation and development, ultimately harming both shareholders and long-term consumer value. The company's transparency about cost drivers and continued promotional offerings suggest a measured response to real market conditions.
The case against
Amazon's exceptional profitability and scale give it unusual capacity to absorb commodity cost shocks that smaller competitors cannot weather, making price increases a choice rather than a necessity. Passing costs to consumers during an inflationary period prioritises shareholder returns over customer welfare when the company could manage this through efficiency gains or accepting temporarily reduced margins. A corporation of Amazon's magnitude has particular responsibility to shield consumers from supply chain volatility rather than transmitting every cost pressure directly to users.