Amazon Raises Hardware Prices 60% Amid Memory Shortage

Amazon has announced that the ongoing global shortage of computer memory is forcing the company to raise the prices of its cloud services, passing the cost increase on to its customers. The retailer’s cloud division, Amazon Web Services (AWS), cited higher prices for dynamic random‑access memory (DRAM) and other components as the primary driver behind the decision. The company said it had already absorbed a portion of the cost increase in the past, but the continued supply constraints have made further absorption unsustainable.

The price hike will affect a range of AWS offerings, including virtual server instances, managed database services, and storage solutions. While the company did not disclose a specific percentage increase, it indicated that the adjustment would be modest and spread across its product portfolio to avoid a sharp impact on any single service. AWS also noted that it is exploring alternative memory technologies and supply chain strategies to mitigate future disruptions.

Industry analysts suggest that the move reflects a broader trend of cloud providers shifting the burden of supply chain volatility onto end users. As memory prices remain volatile, companies like Amazon will likely continue to adjust pricing models to maintain profitability while navigating the constraints of the semiconductor market.