Amazon don debut new set of Alexa tablets on Thursday, and company talk say dem dey drop the budget-friendly Fire lineup. Na big shift for the e-commerce giant devices strategy.
The company unveil 8-inch, 11-inch and 12-inch models. Price start from $230 and reach $550. All devices dey available for preorder on Thursday, and dem go begin ship on Oct. 14.
Amazon historically dey sell devices at or near cost of manufacturing. Part of reason na to undercut competitors with cheap prices, and also to promote other products and services. Dem hope say for every $80 Echo smart speaker wey person buy, user go still buy movies, audiobook subscriptions or items from the webstore, where margins dey higher.
Recently, company dey take steps to make more money from devices business under CEO Andy Jassy, who succeed founder Jeff Bezos in 2021. Last year, e introduce pricier Echo smart speakers and start to charge non-Prime members subscription for Alexa+, the souped-up version of digital assistant.
The $550 Alexa Tablet 12 Pro cost more than double the $155 Fire HD 10, Amazon base model. E put the tablet more in line with Apple iPad, which run from $449 to $1,199.
The launch come as Amazon and other device makers dey grapple with historic surge in memory prices. In August, Amazon boost prices on Echos, Kindles, Fire TVs and other hardware, citing memory crunch. Earlier this year, Apple raise prices on MacBooks and iPads, while Nintendo hike price of Switch 2 console.
Amazon deny say rising memory costs play role in decision to charge more for Alexa tablet. But Panos Panay, company devices boss, acknowledge say the shortage make am ‘quite tricky’ to build premium tablet at reasonable price without making any ‘trade-offs.’
‘I think the team did a good job designing without making that trade,’ Panay tell CNBC for interview. ‘They give you the full craftsmanship of a product, but are able to keep it at that price point.’
Company talk say Alexa tablet improved speed and performance, artificial intelligence features, and upgraded design warrant higher price tag. Dem say e put devices on par with ‘the best tablets on the market.’
Amazon add sleeker, sturdier aluminum backing, higher resolution display and faster processors. On Alexa Tablet 12 Pro, highest-end model, e incorporate ‘Nanomatte’ display technology wey dem develop in partnership with Corning to ‘dramatically reduce screen glare.’
One notable upgrade be say all devices run Google Android operating system. Dat one na major departure from earlier models wey rely on custom Android version called Fire OS and use Amazon own app store, which limit number of apps available.
E also be first time Amazon attach set of devices to Alexa brand, the automated assistant wey first launch in 2014 via Echo smart speaker. Alexa dey front and center for new tablets, through ‘dynamic tab’ on home screen wey offer recommendations and let users quickly pick up where dem leave off reading or watching TV show.
Users fit say ‘Alexa’ or tap ‘Ask Alexa’ button to ask questions. Company also introduce new feature called ‘On-Screen Intelligence,’ where users fit ask Alexa to look at wetin dey their screen and make suggestions or take actions.
For demo, Panay show how users fit watch TikTok clip of person cooking on grill and ask Alexa to shop for burger press wey dem use in video. Users fit also pull up game schedule and add every date to calendar, Amazon talk.
‘She’ll do the homework, and if things work out, she’s going to bring up a shopping list where I can just hit buy now,’ Panay talk.
Amazon talk say e go continue to support Fire lineup for four years after final shipment. Consumers fit continue use their devices as dem dey do today, but company no dey manufacture new units again. Fire lineup include 10-inch and 8-inch model as well as two versions targeted for kids.
