Amazon Plans to Introduce Premium Tier of AI-Powered Alexa Gadgets-OxBig News Network

Amazon.com devices chief Panos Panay is adding a premium tier to the next generation of artificially intelligent Alexa gadgets.

The introduction of tonier hardware, which will coexist with lower- and mid-priced products, is a bid to give consumers more choice while generating new excitement for an Alexa franchise that has lost luster in recent years. 

Panay is pledging to reengineer Amazon’s hardware, from the gadgets’ silicon guts to the design and materials. Whether they fall into the “entry, core or signature” tier, he said, they’ll get the same care and attention. The speakers will sound better, battery life will improve, and the devices will boast the best security available, Panay said.

“I want perfection in every single product that we ship — period,” he told Bloomberg News, while providing few specifics. “There won’t be a corner cut. It won’t matter if we tried it before. It won’t matter what you thought it used to be.”

The voice assistant’s new AI operating system — Alexa+ — will sit at the center of the ecosystem. Thanks to coming “edge-processing” chip upgrades, the devices will eventually be able to handle more AI crunching themselves. That approach, mirroring Apple Inc.’s, could speed up response time and boost privacy. 

The ultimate aim is to facilitate new and more helpful experiences as users move from one gadget to another. “We’re envisioning what’s the next thing for a customer when it comes to AI devices and we have some incredible ones” in development, Panay said. 

The decision to add premium gadgetry to the lineup echoes the strategy Panay employed while running Microsoft Corp.’s hardware division. It’s something of a departure for Amazon. Though the company has previously offered some higher-end hardware, including the Echo Studio speaker and Kindle Scribe reader-notebook combo, Amazon is better known for sub-$50 television sticks and plug-in smart speakers.

It’s an audacious vision and will be tough to execute amid economic uncertainty and with a team that once had almost unlimited budgets but has since suffered waves of job cuts.

Surface Launch

Amazon poached Panay about 18 months ago from Microsoft, where he helped launch the Surface, a tablet with a detachable keyboard that was designed to compete with Apple’s iPad. The first take flopped, but subsequent versions gained traction and spawned a line of laptops, tablets and an all-in-one desktop PC.

Panay became a rare pitchman at a famously nerdy company, donning a hip wardrobe to wax poetic about a laptop’s aluminum sheen or the smooth hinge action of a computer stand. By the time Amazon lured Panay away, the Surface lineup featured plenty of well-reviewed, high-end hardware.

The question now is whether he can help create similar magic at Amazon.

While the company has sold millions of Alexa devices since the voice assistant’s 2014 debut, many people use them as timers or trivia finders. Besides winnowing the hardware team as part of a companywide cost-cutting effort, Chief Executive Officer Andy Jassy has killed several key gadgets, including a fitness-tracking wristband and a video-chat device for kids.

Still, Jassy & Co. see Alexa as a way to attract more Prime members, who will get the new Alexa+ service as part of a $139 annual subscription that also includes free shipping and video streaming.

It’s not yet clear how well the rebooted voice assistant will fare against ChatGPT and other AI bots, but Panay says the new software will give all the devices in the Alexa+ ecosystem an “IQ bump,” even gadgets that debuted a half-decade ago.

Previously Amazon had a tendency to flood the market with Alexa-powered devices, from microwave ovens to finger rings. Panay aims to be a lot more selective. “Ultimately Alexa+ is going to open up a host of new products and experiences,” he said, adding that his team would identify “the ones that matter most.”

AR Glasses

Panay hinted that augmented reality glasses and new wrist-worn devices could be part of the lineup. And while Amazon’s home robot Astro hasn’t sold well, he doesn’t rule out doing more on that front — but only if he’s sure a bot would give customers more reasons to use Alexa.

“At the end of the day, that’s what matters,” he said. “And if a robot is part of that, then I’ll make sure we have a great robot.”

For years, the lack of a smartphone has loomed as a serious limitation for Amazon. The company’s Fire phone famously flopped a decade ago. Panay said he currently has no plans to develop a new handset but didn’t rule out doing so. “It would be foolish of me to not step back and look at how the world’s changing in front of us,” he said. “You always have to evaluate.”

He acknowledged that Amazon needs gadgets that can be untethered from the home or office. The company’s current entrants, developed before Panay’s arrival, are basically me-too devices: Echo Frames, a camera-free take on the smart Ray-Bans from Meta Platforms Inc., and Echo Buds, a slower-selling version of Apple AirPods. Hardware upgrades and an Alexa+ infusion are coming, he said.

Panay will unveil the first products he has overseen in the fall, but owing to development timelines, supply-chain constraints and other challenges, it will take time to put his stamp on the full product lineup. Still, he insists that Amazon will get there.

“The patience and investment are unmatched,” Panay says. 

© 2025 Bloomberg LP

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)