Amazon’s Cheap Devices Just Got a Lot Less Cheap

Amazon’s Cheap Devices Just Got a Lot Less Cheap
Amazon built much of its device empire on the promise of bargain-priced hardware. Now, amid a squeeze on memory and storage, some of its cheapest gadgets are carrying far steeper price tags.

The increases appeared overnight across Amazon’s first-party lineup, affecting Echo speakers, Kindle e-readers, Fire TV streamers and eero networking kits. The standout move was the fifth-generation Echo Dot, which rose from $49.99 to $79.99 — a 60% jump. The Fire TV Stick 4K Max climbed from $59.99 to $84.99, while the entry-level 16GB Kindle moved from $109.99 to $149.99.

Amazon’s explanation is straightforward: component costs have outrun what it was willing to absorb. “The consumer electronics industry is facing significant increases in memory and storage component costs,” the company said, adding that it had held off on raising prices “for as long as we could.” It maintained that its commitment to accessible products remains intact and said promotions would continue through the year.

The timing puts Amazon in a broader industry story. A memory-chip shortage, driven by intense demand for AI computing, has pushed other technology companies to raise prices, pare back specifications or both. Apple, Microsoft and major PC makers have also faced higher memory costs, while Amazon itself is preparing to spend an estimated $220 billion this year on capital expenditures, largely for AI data centers.

Not every Amazon device was swept into the adjustment. Ring cameras and video doorbells were left untouched, as was the higher-end Echo Studio. But the uneven list sharpens the contrast: the products that once served as low-cost entry points into Amazon’s ecosystem have, in several cases, taken the hardest hit.

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