Amazon Hikes Echo, Kindle Prices Up To 60%

Amazon raised prices overnight across its device lineup — Echo speakers, Fire TV sticks, Kindles and eero routers — blaming the cost of memory chips.

An Amazon spokeswoman confirmed the increases to Fortune, which first reported them Friday, saying 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."

The cheapest devices took the biggest hit. The base Echo Dot went from $49.99 to $79.99 — a 60% jump.

What Costs What Now

Before-and-after prices reported by Fortune and The Verge:

Echo Dot (5th gen): $49.99 to $79.99 (+60%)

Fire TV Stick 4K Max: $59.99 to $84.99 (+41.7%)

Echo Spot: $79.99 to $109.99 (+37.5%)

Kindle (16GB): $109.99 to $149.99 (+36.4%)

Kindle Paperwhite (16GB): $159.99 to $199.99 (+25%)

Echo Show 21: $399.99 to $499.99 (+25%)

Echo Dot Max: $99.99 to $119.99 (+20%)

Echo Show 15: $299.99 to $349.99 (+16.7%)

Fire TV Stick HD: $34.99 to $39.99 (+14.3%)

eero 7 (3-pack): $349.99 to $399.99 (+14.3%)

eero Pro 7 (3-pack): $699.99 to $799.99 (+14.3%)

Echo Show 11: $219.99 to $249.99 (+13.6%)

Echo Show 8: $179.99 to $199.99 (+11.1%)

Amazon did not raise prices on its Ring cameras and video doorbells. The Verge reports the $219.99 Echo Studio also appears untouched.

Why It's Happening

A memory chip shortage driven by demand for AI computing is pushing up the cost of RAM and storage across the industry, Fortune reported.

Amazon is not the first to pass it on. In June, Apple raised prices on Macs and iPads over memory costs; Chief Executive Tim Cook called it a "100-year flood on memory pricing." Apple also raised the HomePod Mini this summer to $129 from $99.99, according to The Verge.

Microsoft said it will raise Xbox console prices by $100 to $150 depending on the version, and stop selling the 2-terabyte configuration. Dell, HP, Lenovo and Asus have raised prices or cut the amount of memory in their products, Fortune reported.