AI's insatiable appetite for compute is driving storage-chip prices higher, and the cost is now hitting consumer gadgets. Amazon has raised prices on several hardware products, including its best-selling entry-level Echo smart speaker from $49.99 to $79.99 — a roughly 60% jump — and the 16GB base e-reader from $109.99 to $149.99, up about 36%.
Amazon isn't alone. Apple, Microsoft, and Dell have also responded to higher memory costs by raising prices or trimming default RAM configurations. IDC has warned that global memory supply could stay tight through 2027, and the industry expects chip prices to peak in 2028 before gradually coming down.