Amazon $AMZN is internally forecasting a $612 million gross loss for its devices business in 2026, compared with its original target of $438 million, per Business Insider.
An internal document cited surging memory chip costs as a major factor, forcing “difficult trade-offs” between device pricing, sales volumes and profitability.
Amazon has already raised prices on Echo, Kindle and Fire TV devices, while replacing its budget Fire tablets with more expensive Alexa tablets.