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25 Aug 2026, 3:54 AMTechCrunch5.5 Amazon hikes hardware prices by 60%, blaming memory shortage

Amazon raised prices on consumer hardware (Fire TVs, Echos, Kindles, Eeros) by up to 60% overnight, citing rising memory and storage component costs driven by the AI boom. The Echo Dot jumped from $49.99 to $79.99. Amazon says the shortage is industry-wide and will continue through 2027, with possible stabilization in 2028.

Why: The 'RAMmageddon' memory shortage is not just a consumer gadget story — it signals that RAM and storage costs will keep climbing into 2027, which means cloud instance pricing, on-prem hardware budgets, and device procurement for teams will likely get worse before they get better. If you're planning infrastructure spend or hardware refresh cycles, lock in current pricing or expect 30-60% increases on memory-heavy gear.

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