Amazon is abandoning its budget friendly Fire tablet lineup and replacing it with a more expensive family of Alexa branded devices. The shift moves the online commerce giant away from the deeply discounted hardware strategy that long defined its consumer electronics business.
The company introduced 8 inch, 11 inch and 12 inch Alexa tablets Thursday. Prices start at $230 and climb to $550, with preorders opening Thursday and shipments scheduled to begin Oct. 14.
Amazon historically sold devices at or near manufacturing cost, partly to undercut competitors and partly to steer customers toward its broader commercial ecosystem. An $80 Echo smart speaker, for example, could encourage purchases of movies, audiobook subscriptions or products from Amazon’s online store.
That approach has been changing under CEO Andy Jassy, who succeeded founder Jeff Bezos in 2021. Amazon has recently taken steps to generate more money from its devices operation rather than relying so heavily on cheap hardware to drive other sales.
Last year, the company introduced more expensive versions of its Echo smart speakers. It also began charging customers without Prime memberships for Alexa+, the enhanced version of its digital assistant.
The $550 Alexa Tablet 12 Pro makes the new direction particularly clear. It costs more than twice the $155 price of the base Fire HD 10 and brings Amazon closer to Apple’s iPad range of $449 to $1199.
The launch arrives while Amazon and other device makers confront a historic surge in memory prices. Amazon increased prices for Echos, Kindles, Fire TVs and other hardware in August, citing the memory crunch, while Apple raised MacBook and iPad prices and Nintendo increased the Switch 2 console price.
Amazon denied that higher memory costs caused it to charge more for the Alexa tablet. Devices boss Panos Panay nevertheless acknowledged that the shortage made building a premium tablet at a reasonable price “quite tricky” without accepting any “trade-offs.”
“I think the team did a good job designing without making that trade,” Panay told CNBC. “They gave you the full craftsmanship of a product, but are able to keep it at that price point.”
Amazon argues that faster performance, artificial intelligence features and an upgraded design justify the larger price tags. The company said the devices now stand alongside “the best tablets on the market.”
The tablets feature sturdier and sleeker aluminum backing, displays with higher resolution and faster processors. The Alexa Tablet 12 Pro also includes “Nanomatte” display technology, developed with Corning, that Amazon said would “dramatically reduce screen glare.”
Another major change is the move to Google’s Android operating system across all the new devices. Earlier tablets used a customized version of Android called Fire OS and relied on Amazon’s own app store, which restricted the selection of available applications.
The launch also marks the first time Amazon has attached the Alexa name to an entire set of devices. Alexa first launched in 2014 through the Echo smart speaker and now occupies a central role on the tablets.
A “dynamic tab” on the home screen provides recommendations and allows users to resume reading or watching a television show. Amazon also introduced “On-Screen Intelligence,” which lets users ask Alexa to examine material displayed on the screen and then suggest or perform actions.
During a demonstration, Panay showed a user watching a TikTok video of someone cooking on a grill and asking Alexa to find a burger press shown in the clip. Amazon said users can also display a game schedule and add every date to their calendar.
“She’ll do the homework, and if things work out, she’s gonna bring up a shopping list where I can just hit buy now,” Panay said. The feature places Alexa’s assistance and Amazon’s shopping operation together directly on the tablet screen.
Amazon is no longer manufacturing new Fire tablets, though it said existing customers can continue using their devices as they do today. The company will support the Fire lineup for four years after the final shipment.
The outgoing Fire family includes 10 inch and 8 inch tablets, along with two versions designed for children. Their exit closes Amazon’s budget tablet chapter as the company bets that customers will pay considerably more for Alexa, Android and premium hardware.