The news many feared has arrived: Amazon has raised prices on a large portion of its device catalog, including Echo speakers, Fire TV players, Kindle readers, and Eero routers. The company has confirmed that the increase is due to the rising cost of memory and storage components, a problem affecting the entire technology industry and stemming from the growing demand for artificial intelligence.
Although the announcement was made official in the United States, the price increase has also been felt in Spain , where recommended retail prices have risen considerably in recent weeks. According to tracking by Xataka, some models have seen increases of up to 60%, a significant blow to consumers looking for an affordable way to enter the Amazon ecosystem.
The new prices in the Spanish market
In Spain, the changes are clear. The Fire TV Stick HD has gone from €49,99 to €64,99, while the Fire TV Stick 4K Max has increased from €79,99 to €114,99. In the speaker range, the latest-generation Echo Dot has gone from €64,99 to €89,99, and the Echo Show 11 has increased from €239,99 to €269,99. Kindle e-readers haven't escaped the price hikes either: the basic 16GB model has gone from €119,99 to €169,99, and the 16GB Paperwhite has gone from €179,99 to €224,99.
These price increases are not unique to Spain. In the United States, prices have risen similarly, with the Echo Dot being the most affected, jumping from $49,99 to $79,99, a 60% increase. The company explained that the rise is due to the soaring costs of memory and storage , driven by the demand for artificial intelligence chips.
The RAM crisis and AI
The problem isn't unique to Amazon. The entire consumer electronics industry is suffering the consequences of the DRAM and NAND memory shortage. Artificial intelligence data centers are monopolizing the production of these components, which has driven prices up. According to data from Counterpoint Research, memory and storage prices have quadrupled in the last three quarters.
Amazon has confirmed that it absorbed the price increases for as long as possible , but ultimately had to pass them on to consumers. Kristy Schmidt, senior manager of Amazon's Devices and Services division, told The Verge that "the consumer electronics industry is facing significant increases in the cost of components such as memory and storage. After absorbing these increases for as long as possible, we recently adjusted the price across our product line."
Amazon competes with itself
One of the most curious aspects of this surge is that Amazon is competing directly with its own data centers. The company has announced it will increase its capital spending to $220.000 billion by 2026, $20.000 billion more than previously planned, to meet the demand for memory for its AI servers. Meanwhile, AWS continues to break records: in the second quarter, it generated $42.200 billion in revenue, a 37% increase year-over-year.
This situation puts Amazon in a difficult position. On the one hand, it needs memory for its consumer devices; on the other, that same memory is essential for its cloud computing business. The paradox is that Amazon is raising the price for itself , and the end consumer is the one who ends up footing the bill.
What does this mean for the consumer?
For consumers, this price increase represents a paradigm shift. Amazon devices have always been known for offering good value for money, but now that advantage has diminished. The Echo Dot, which used to be a common gift for under €50, now costs €89,99. Although Amazon often offers deals during Prime Day or Black Friday, the starting price is higher, so the discounts will be less appealing.
Furthermore, the price increase doesn't affect all products equally. Ring cameras and doorbells, as well as the Echo Studio, are maintaining their prices for now. But the trend is clear: technology is becoming increasingly expensive , and it doesn't appear that this will decrease in the short term. Analysts predict that the memory crisis will extend well into 2027.
Ultimately, Amazon's price hikes reflect a global crisis affecting the entire tech industry. The demand for memory for artificial intelligence has disrupted the market, and consumers are bearing the brunt of it. If you were considering buying an Amazon device, it might be best to sell your old e-reader to Amazon to offset the expense before prices rise even further. The company has stated that it will continue to offer promotions, but the starting price will no longer be the same.
