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Amazon raises prices on Echo, Fire TV and Kindle devices amid memory chip cost surge

Amazon lifted prices on several of its own devices, from Echo speakers to Kindle e-readers, blaming a sharp rise in memory chip costs, while the company prepares for a major autumn product event.

Amazon Echo speaker and Kindle e-reader with price tags

Amazon announced overnight price increases for a range of its first-party hardware, including the Echo smart speaker line, Fire TV streaming devices, Kindle e-readers and the eero mesh-network system. The base Echo Dot rose from $49.99 to $79.99, while the Echo Show 11 went from $219.99 to $249.99. Kindle models saw similar jumps, with the 16-GB Kindle moving to $149.99 and the Kindle Paperwhite to $199.99. Fire TV Stick HD now costs $39.99, up from $34.99, and the Fire TV Stick 4K Max climbed to $84.99. The eero 7 system increased to $399.99 and the eero Pro 7 to $799.99.

Price changes across the lineup

The adjustments affect most of Amazon's own devices but leave the Ring security line untouched. The company said the moves were necessary after a period of absorbing higher component costs.

"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," a company spokeswoman said.

Why memory costs are rising

Industry analysts point to a global shortage of memory chips, driven by soaring demand for artificial-intelligence computing power. The shortage has forced many manufacturers, from Apple to Microsoft, to raise prices or reduce memory specifications in their products. Andy Jassy, chief executive of Amazon, has highlighted the impact on the company's capital spending, noting a rise in the budget for data-centre infrastructure to $220 billion this year.

Implications for shoppers and Amazon's plans

For European consumers, the price hikes could narrow the cost advantage that Amazon's devices traditionally enjoy. The company has promised promotional offers throughout the year to mitigate the impact, but the higher baseline prices may influence buying decisions ahead of the upcoming autumn launch event.

Amazon Web Services reported a 37 percent year-on-year revenue increase to $42.2 billion in the second quarter, underscoring the broader growth of the group's cloud business despite the hardware price adjustments.

Looking forward, Amazon is expected to continue monitoring component costs and may adjust pricing further if memory shortages persist. Shoppers are advised to watch for seasonal discounts and to compare specifications carefully before purchasing.