Amazon's Panos Panay Unveils Vision for Premium AI-Powered Alexa Devices

Amazon's Panos Panay teases future Alexa+ devices from speakers to possible wearables

We'll likely see new speakers and smart displays, but also new device types, including wearables like smart glasses and 'wrist-worn devices' Since October 2023, we've seen Panos Panay's arrival usher in changes within Amazon Devices group - think Echo, Fire TV, Kindle, and Alexa - at the broader shopping giant. Most recently, though, we saw Panos and his team at Amazon introduce a new Alexa, Alexa+, which reinvigorates the classic assistant with a ton of AI. In a new interview with Bloomberg's Mark Gurman, Panay teases the next part of evolution and that he wants "perfection in every single product that we ship." He teased that he plans to re-engineer hardware across the lineup for more affordable, mid-range, and premium devices - dubbed 'entry, core or signature.' Better yet, Panos says battery life will be longer for portables, that the speakers will sound better - maybe even setting a standard higher than the first generation Echo Studio with a squeal - and, potentially taking a page from his time as Surface's lead, promises 'the best security available.' It's said that the first devices featuring Alexa+ that Panos has touched, beyond the Kindles and even the Echo Show 15 or 21, will arrive in the fall - think August to October of 2025. Indeed, Panos is setting a high level for future Echo smart speakers and smart displays, as well as its lineup of Fire TV sticks and televisions, Fire HD tablets, and various other devices. We already saw the next generation of Kindle debuted in the last quarter of 2024, and in this wide-ranging interview, Panay stated: "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." This could lead to a sharper focus for Amazon's entire devices team, which is still starting at the customer and working backwards but also putting out future devices with more polish. It could also be a device type that Amazon has tried. However, this does not mean Amazon is bringing back the short-lived Fire Phone - Panos made it clear he doesn't have plans to do that, though it's not entirely off the table. More likely, it could mean reinvestment in robots for the home, like the Ring Always Home Cam - a flying security drone - and Amazon Astro. The latter is still an invite-only Day One product, but Panos summed up a big part of the vision as giving folks a reason or a better one to use Alexa. On Astro and robots as a whole, Panos said, "if a robot is part of that, then I'll make sure we have a great robot." He also hinted that augmented reality glasses and new wrist-worn devices could be part of a future lineup. This might mean future versions of Echo Frames could feature cameras, much like Ray-Ban Metas, but also be more full-featured devices with access to Alexa+. Panos confirmed that hardware upgrades are coming to Amazon's current wearables, Echo Frames and Echo Buds. It also makes more sense why Alexa+ had to be unveiled first. It will be the central feature of these future devices, essentially serving as the new platform on which they can hopefully excel. I still bet Amazon wants a screen in everyone's house. Like Panos' strategy at Microsoft for Surface, Amazon's forthcoming devices will likely have the utmost attention to detail and not just offer speeds for the sake of going fast but rather be there to provide some sort of functionality and genuine helpfulness for whoever is using it. Panos stated, "We're envisioning what's the next thing for a customer when it comes to AI devices and we have some incredible ones." It's doubling down on Amazon's devices lineup, and I'm just keen to see if Amazon will flood the market with new devices in the fall like its previous events or if it will be a more tempered approach. At the minimum, I hope for a few new Echo speakers across the entry, core, and signature lineup.

Amazon plans higher-end products with Alexa+ to better rival Apple, big plans in store with AI

TL;DR: Amazon Devices head Panos Panay plans to introduce a premium tier for Alexa gadgets with the AI-powered Alexa+. These devices will feature improved audio, battery life, and security, aiming to compete with Apple. The new Alexa+ ecosystem will leverage edge-processing chips for enhanced AI capabilities, marking a shift in Amazon's product strategy. Amazon Devices boss Panos Panay will be adding a new premium tier to the next-generation Alexa gadgets, centered around its new AI-powered Alexa+. In a new report from Bloomberg, we're learning that the higher-end Alexa+ products will better compete against Apple products, with Panay pledging to reengineer Amazon's hardware from the silicon insides, to the design and materials on the outside. Bloomberg's Mark Gurman writes that whether they fall into the "entry, core or signature" he said that they will get the same love and attention. Panay says that the higher-tier Alexa+ devices will have better audio, battery life, and security. He added: "I want perfection in every single product that we ship - period. 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". At the center of this new ecosystem will be Alexa+ which is the company's new AI operating system, and thanks to upcoming "edge-processing" chip upgrades, these future devices will eventually be capable of handling more and more AI processing themselves. Panay says that "we're envisioning what's the next thing for a customer when it comes to AI devices and we have some incredible ones"'. As it stands, Amazon is more known for its cheap under $50 TV sticks and plug-in smart speakers, and not for high-end AI-powered devices. With the likes of Apple flopping around in the wind when it comes to AI and its DOA Apple Intelligence launch that is now YEARS away from becoming reality with an AI-powered SIri... Amazon is seemingly swooping in and wanting that AI-powered Alexa+ business, and it seems serious about it, too. Especially when if you consider that Panay was poached by Amazon from Microsoft around 18 months ago, and that before he joined the Amazon team he headed up and launched the Surface for Microsoft -- you know, the higher-end iPad competitor that runs Windows. It didn't start off too well, but it turned into a well-oiled machine of multiple generations of very successful laptops, tablets, and all-in-one desktop PCs. This new expansion from Amazon could even lead into the world of AR glasses and wrist-worn devices reports Gurman, while it also feels like we could see a revival of the Fire smartphone, powered by Alexa+ I'm sure. Amazon is completely refocusing its product lineup, so it'll be exciting to see what the company can cook up between now and CES 2026... which is only 9 more months away now.

Inside Amazon's plan to reshape its Alexa devices business

Amazon 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 midpriced 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 re-engineer 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'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'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 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 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, 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.

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

The ultimate aim is to facilitate new and more helpful experiences 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. 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." 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