1 00:00:02,480 --> 00:00:08,400 Speaker 1: Bloomberg Audio Studios, podcasts, radio news panels. 2 00:00:08,560 --> 00:00:10,080 Speaker 2: The way that I look at this is that this 3 00:00:10,160 --> 00:00:13,840 Speaker 2: is the first generation of Amazon hardware that has your 4 00:00:13,920 --> 00:00:16,840 Speaker 2: fingers on it right and as a place to start, 5 00:00:16,920 --> 00:00:20,360 Speaker 2: can we talk a bit about the hardware innovation, the 6 00:00:20,440 --> 00:00:24,320 Speaker 2: areas that you feel are most important here in this generation. 7 00:00:27,520 --> 00:00:29,800 Speaker 1: Yeah, I think this is a first. It's an incredible 8 00:00:29,800 --> 00:00:34,160 Speaker 1: team that's building these products, and these products are designed 9 00:00:34,159 --> 00:00:36,919 Speaker 1: from the silicon up. Quite literally, this is custom silicon 10 00:00:37,000 --> 00:00:41,240 Speaker 1: built for the Alexa products. But there's also a focus 11 00:00:41,320 --> 00:00:44,000 Speaker 1: right now on the sensing capabilities from the camera to 12 00:00:44,040 --> 00:00:47,360 Speaker 1: the microphone to just presence detection through Wi Fi. It's 13 00:00:47,440 --> 00:00:50,320 Speaker 1: really important because you can start enabling these productive scenarios. 14 00:00:51,000 --> 00:00:53,760 Speaker 1: The other thing is great sound like ED is so 15 00:00:53,840 --> 00:00:57,160 Speaker 1: important for our customers, like just filling your house with sound. 16 00:00:57,200 --> 00:00:59,560 Speaker 1: I think sometimes we forget the emotion of music or 17 00:00:59,720 --> 00:01:02,360 Speaker 1: how clear you want to have that conversation back and forth. 18 00:01:02,680 --> 00:01:04,760 Speaker 1: So each one of these details is kind of thought through. 19 00:01:04,800 --> 00:01:06,400 Speaker 1: These products are built from the ground up, but this 20 00:01:06,800 --> 00:01:10,240 Speaker 1: team has just literally pushed through every detail. 21 00:01:10,800 --> 00:01:13,960 Speaker 2: I think about this at a time where we are 22 00:01:14,000 --> 00:01:19,080 Speaker 2: in a voice assistant or voice based generative AI era right. 23 00:01:19,160 --> 00:01:21,319 Speaker 2: As you know. I have an Alexa device in almost 24 00:01:21,319 --> 00:01:23,800 Speaker 2: every single room of my house. But when I think 25 00:01:23,840 --> 00:01:26,160 Speaker 2: about the Genai, which is I'm always by the way 26 00:01:26,319 --> 00:01:29,880 Speaker 2: right it is. But here's the thing, the Genai tools 27 00:01:29,880 --> 00:01:32,319 Speaker 2: that I'm using every single day, I go to my 28 00:01:32,440 --> 00:01:36,720 Speaker 2: smartphone because it's on my person. There isn't something that 29 00:01:36,760 --> 00:01:40,440 Speaker 2: the Alexa device can do with the same immediacy. Maybe 30 00:01:40,480 --> 00:01:43,640 Speaker 2: you disagree that my funbs can do. So what is 31 00:01:43,680 --> 00:01:47,600 Speaker 2: it about this generation of hardware that makes those form factors, 32 00:01:47,640 --> 00:01:51,080 Speaker 2: the echo devices and the range of other things the 33 00:01:51,160 --> 00:01:53,960 Speaker 2: right form factor for this era. 34 00:01:55,880 --> 00:02:00,480 Speaker 1: It's a good question. It's a good question. First, the 35 00:02:00,480 --> 00:02:03,160 Speaker 1: the new Alexa Alexa Plus is powered by AI, so 36 00:02:03,240 --> 00:02:07,200 Speaker 1: it's LLM backed, if you will, so limitless knowledge, limitless understanding, 37 00:02:07,200 --> 00:02:10,040 Speaker 1: and you can have any conversation. It's quite conversational. So 38 00:02:10,080 --> 00:02:11,960 Speaker 1: when you talk about what you're typing into a phone, 39 00:02:11,960 --> 00:02:14,079 Speaker 1: one of the things I like talking about is maybe 40 00:02:14,240 --> 00:02:16,560 Speaker 1: even a little easier now ed because you have all 41 00:02:16,600 --> 00:02:20,200 Speaker 1: that kind of infra, you literally can just speak. I 42 00:02:20,240 --> 00:02:22,600 Speaker 1: call it amby as a team call it ambient AI, 43 00:02:23,000 --> 00:02:24,960 Speaker 1: and we believe that your Eco device is right now 44 00:02:24,960 --> 00:02:27,040 Speaker 1: as you light them up with Alexa plus, just have 45 00:02:27,120 --> 00:02:29,800 Speaker 1: any conversation at any time. I think you're something quite powerful 46 00:02:29,800 --> 00:02:31,880 Speaker 1: about that too. Where a lot of times we take 47 00:02:31,880 --> 00:02:33,640 Speaker 1: out our phone, we get distracted. I'm at the dinner 48 00:02:33,680 --> 00:02:36,840 Speaker 1: table with my kids. We have this idea that we 49 00:02:36,880 --> 00:02:39,040 Speaker 1: want to keep our phones down right because we want 50 00:02:39,040 --> 00:02:41,160 Speaker 1: to be present with each other. And there's so many 51 00:02:41,160 --> 00:02:42,960 Speaker 1: times where you pull out your phone to answer a question. 52 00:02:43,000 --> 00:02:46,040 Speaker 1: Almost like you just said, but now it's just changed, 53 00:02:46,080 --> 00:02:50,480 Speaker 1: it's completely different. Just say, Alexa have the conversation. It's 54 00:02:50,639 --> 00:02:54,360 Speaker 1: quite literally all the information there and it's conversational. Not 55 00:02:54,400 --> 00:02:56,040 Speaker 1: only that, she can then get the next thing done 56 00:02:56,080 --> 00:02:57,720 Speaker 1: for you. Let's say you have a conversation, you want 57 00:02:57,760 --> 00:03:00,120 Speaker 1: to talk a little bit more about what's happening and 58 00:03:00,160 --> 00:03:02,040 Speaker 1: what do we think about what's happening tomorrow. You just 59 00:03:02,040 --> 00:03:03,760 Speaker 1: add it to your calendar right there, and then just 60 00:03:03,840 --> 00:03:07,760 Speaker 1: with your voice, it's distraction free, it's ambient, and it's 61 00:03:07,840 --> 00:03:10,560 Speaker 1: so fun because you're just engaged in a totally different 62 00:03:10,560 --> 00:03:11,440 Speaker 1: way with your voice. 63 00:03:11,480 --> 00:03:15,880 Speaker 2: Just as you said, Alexa plus is listening more contextually, 64 00:03:16,480 --> 00:03:20,240 Speaker 2: it is listening more intelligently. Yeah, how do you build 65 00:03:20,360 --> 00:03:24,640 Speaker 2: trust with the customer consumer base knowing its capabilities. 66 00:03:27,560 --> 00:03:30,280 Speaker 1: We've been doing it for ten plus years. This is 67 00:03:30,320 --> 00:03:32,400 Speaker 1: what we are one hundred percent focused on for our 68 00:03:32,440 --> 00:03:34,480 Speaker 1: customers the end of the day. The way you do 69 00:03:34,520 --> 00:03:38,080 Speaker 1: that is you give your customers full control, full control, 70 00:03:38,360 --> 00:03:41,840 Speaker 1: opt in, opt out, remember what you want do just 71 00:03:42,040 --> 00:03:46,400 Speaker 1: literally control your data for yourself. Plus, everything to Amazon 72 00:03:46,520 --> 00:03:48,760 Speaker 1: is anonymised, so we don't really have any info. So 73 00:03:48,800 --> 00:03:50,680 Speaker 1: at the end of the day, it's up to you 74 00:03:50,760 --> 00:03:52,360 Speaker 1: and what you do with your product. And I think 75 00:03:52,400 --> 00:03:55,840 Speaker 1: that's what the answer is. That's you give customer full control, 76 00:03:55,880 --> 00:03:58,120 Speaker 1: and we do. We're very proud of that, Like, that's 77 00:03:58,120 --> 00:04:00,320 Speaker 1: a big deal for us. 78 00:04:00,400 --> 00:04:04,360 Speaker 2: Is there like a generational divide in the Alexa user 79 00:04:04,400 --> 00:04:08,280 Speaker 2: base and how does this generation of hardware change that? 80 00:04:08,320 --> 00:04:10,880 Speaker 2: In other words, is there just a group of people 81 00:04:10,920 --> 00:04:14,520 Speaker 2: in society that are going to come to AI enabled 82 00:04:14,520 --> 00:04:17,000 Speaker 2: devices for the first time here? And if so, for 83 00:04:17,080 --> 00:04:17,680 Speaker 2: what reason? 84 00:04:20,600 --> 00:04:23,279 Speaker 1: We do think so? We do think so a couple 85 00:04:23,320 --> 00:04:26,320 Speaker 1: of reasons. One, you know these are objects and you 86 00:04:26,360 --> 00:04:28,839 Speaker 1: know they're beautiful. This matter is like when you buy 87 00:04:28,880 --> 00:04:31,960 Speaker 1: something and something you covet, something you wanted, and you 88 00:04:32,040 --> 00:04:34,440 Speaker 1: go after because it's so useful and it can get 89 00:04:34,480 --> 00:04:36,400 Speaker 1: so much done for you. And it has that depth 90 00:04:36,400 --> 00:04:39,239 Speaker 1: of knowledge. We do think there's a whole new customer 91 00:04:39,279 --> 00:04:42,279 Speaker 1: base coming in for Alexa to go use Alexa Plus. 92 00:04:42,279 --> 00:04:44,800 Speaker 1: That's why these products were designed and maybe to your 93 00:04:44,800 --> 00:04:48,280 Speaker 1: first question, like thought all the way through, including how 94 00:04:48,320 --> 00:04:49,880 Speaker 1: it fits in your home or how it fits in 95 00:04:49,960 --> 00:04:53,000 Speaker 1: your apartment where it just seamlessly fits in, and then 96 00:04:53,040 --> 00:04:54,880 Speaker 1: with the beautiful sound that comes off of it, that 97 00:04:54,960 --> 00:04:59,039 Speaker 1: elegance of just contextual understanding. Combine those things and you 98 00:04:59,120 --> 00:05:01,560 Speaker 1: end up with a whole new category of device for people, 99 00:05:01,920 --> 00:05:04,280 Speaker 1: which then leads you to a whole new customers set. 100 00:05:04,520 --> 00:05:05,640 Speaker 1: I'm pretty pumped about it. 101 00:05:06,400 --> 00:05:09,839 Speaker 2: Panas s Bloomberg's Mark Gumman has written, and it's based 102 00:05:10,240 --> 00:05:14,280 Speaker 2: in part on a conversation with you, that Amazon's overhauling 103 00:05:14,279 --> 00:05:18,640 Speaker 2: its device is to take on Apple in this AI era. 104 00:05:19,080 --> 00:05:20,000 Speaker 2: Do you agree with that? 105 00:05:22,760 --> 00:05:25,760 Speaker 1: I haven't seen it. Can I say that? Let me 106 00:05:25,800 --> 00:05:28,359 Speaker 1: read that article that Well, here's what I'd say. We 107 00:05:28,440 --> 00:05:32,680 Speaker 1: build our products for our customers and for people. My 108 00:05:32,760 --> 00:05:35,719 Speaker 1: whole goal is quite simple. We want AI to be 109 00:05:35,839 --> 00:05:39,719 Speaker 1: useful for people, end of story. And I think we're 110 00:05:39,720 --> 00:05:41,960 Speaker 1: building devices to do just that. And I do believe 111 00:05:41,960 --> 00:05:43,919 Speaker 1: they're beautiful. I think they fit in the home. I 112 00:05:43,920 --> 00:05:46,200 Speaker 1: think they're so well thought through that when people use 113 00:05:46,240 --> 00:05:49,440 Speaker 1: these devices said they're gonna love them, They're just gonna 114 00:05:49,480 --> 00:05:51,880 Speaker 1: love them. I can't like this is something I just 115 00:05:51,920 --> 00:05:53,520 Speaker 1: want people to get their hands on them. 116 00:05:53,960 --> 00:05:55,760 Speaker 2: The way that we could look at this bigger picture 117 00:05:55,880 --> 00:05:59,520 Speaker 2: is that the Echo family at least has always had 118 00:05:59,520 --> 00:06:02,640 Speaker 2: an element of affordability. And I know that you also 119 00:06:02,720 --> 00:06:05,680 Speaker 2: want to look broader at premium products too, So how 120 00:06:05,720 --> 00:06:09,160 Speaker 2: do you balance the signature premium while keeping that sort 121 00:06:09,160 --> 00:06:13,240 Speaker 2: of historic affordability of what Echo is represented to date. 122 00:06:16,440 --> 00:06:20,800 Speaker 1: You essentially build products for every customer. That's how you 123 00:06:20,839 --> 00:06:23,200 Speaker 1: do it. Like we have products that started forty nine 124 00:06:23,200 --> 00:06:25,160 Speaker 1: dollars and can go up to four ninety nine, and 125 00:06:26,000 --> 00:06:27,760 Speaker 1: you know, you can think about price point, but then 126 00:06:27,760 --> 00:06:30,599 Speaker 1: you also think about feature set. We want everybody to 127 00:06:30,680 --> 00:06:33,280 Speaker 1: have that great experience, but they can do it at 128 00:06:33,279 --> 00:06:36,080 Speaker 1: the price point that that suits them best, and you 129 00:06:36,080 --> 00:06:39,240 Speaker 1: know they're at that point when you're able to kind 130 00:06:39,240 --> 00:06:41,880 Speaker 1: of encompass, then you know you have something for everybody. 131 00:06:41,960 --> 00:06:44,000 Speaker 1: That's that's really a big deal for us, and we'll 132 00:06:44,040 --> 00:06:47,880 Speaker 1: continue to build not only affordable products, but also beautiful products. 133 00:06:48,240 --> 00:06:50,360 Speaker 1: We in essence we wrap that in a package that 134 00:06:50,440 --> 00:06:51,880 Speaker 1: we just say, we just need to make great products 135 00:06:51,920 --> 00:06:52,320 Speaker 1: for people. 136 00:06:52,960 --> 00:06:57,159 Speaker 2: Panas how many people are paying actively for Alexa plus 137 00:06:57,160 --> 00:07:00,120 Speaker 2: and how many of them are using it just through 138 00:07:00,160 --> 00:07:05,880 Speaker 2: their Prime Prime platform subscription or entitlement. 139 00:07:08,640 --> 00:07:11,040 Speaker 1: We're not quite there yet. Ed, we're still in early access. 140 00:07:11,160 --> 00:07:14,360 Speaker 1: So in early access, nobody right now is actually paying. 141 00:07:14,440 --> 00:07:17,320 Speaker 1: They're just using it. We're getting the feedback, we're seeing 142 00:07:17,360 --> 00:07:21,239 Speaker 1: incredible engagement. You know. We we have over ten million 143 00:07:21,280 --> 00:07:24,280 Speaker 1: people have access to it right now. It's pretty awesome 144 00:07:24,320 --> 00:07:26,200 Speaker 1: though to see how they're using it. But right now, 145 00:07:26,200 --> 00:07:28,640 Speaker 1: because it's an early access, So I go back to 146 00:07:28,800 --> 00:07:29,880 Speaker 1: we're not charging. 147 00:07:30,120 --> 00:07:31,640 Speaker 2: I go back to the root of my question, which 148 00:07:31,680 --> 00:07:35,120 Speaker 2: is on the hardware innovation. Right the choice that a 149 00:07:35,160 --> 00:07:37,480 Speaker 2: consumer will have is is the need to pay twenty 150 00:07:37,480 --> 00:07:40,840 Speaker 2: dollars a month for Alexa Plus. They might have older 151 00:07:40,880 --> 00:07:46,600 Speaker 2: generations of now obsolete Amazon hardware. Is upgrading to this 152 00:07:46,640 --> 00:07:51,480 Speaker 2: new generation absolutely necessary to access all that Alexa plus 153 00:07:51,480 --> 00:07:52,080 Speaker 2: has to offer? 154 00:07:54,960 --> 00:07:58,160 Speaker 1: Absolutely not. You can, like, we design the product to 155 00:07:58,240 --> 00:08:00,920 Speaker 1: work back to products all the way back to twenty sixteen, 156 00:08:01,320 --> 00:08:03,320 Speaker 1: and so that is like a ninety nine or so 157 00:08:03,480 --> 00:08:06,040 Speaker 1: percent of our customer base right now ed this was 158 00:08:06,160 --> 00:08:08,760 Speaker 1: really important point. If we're going to have AMBIENTAI where 159 00:08:08,760 --> 00:08:11,520 Speaker 1: people can just talk to Alexa plus anywhere. It wasn't 160 00:08:11,560 --> 00:08:15,239 Speaker 1: about just replacing products. That said, the new hardware is awesome, 161 00:08:15,360 --> 00:08:17,840 Speaker 1: and we really do want people to experience the next 162 00:08:17,880 --> 00:08:21,000 Speaker 1: generation of it. These products are faster, they fit seamlessly 163 00:08:21,040 --> 00:08:23,400 Speaker 1: into your home. The sound is amazing, the microphone is amazing, 164 00:08:23,400 --> 00:08:26,600 Speaker 1: the sensing is amazing, and so to really get the 165 00:08:26,640 --> 00:08:29,720 Speaker 1: best experience, for sure, the new hardware leads you there. 166 00:08:29,720 --> 00:08:31,760 Speaker 1: And that's what today was all about. But I also 167 00:08:31,800 --> 00:08:34,200 Speaker 1: want to tell you, like, this is all about customers 168 00:08:34,200 --> 00:08:36,040 Speaker 1: and doing everything we can for them, and part of 169 00:08:36,040 --> 00:08:37,960 Speaker 1: that is making sure that they have access to Alexa 170 00:08:37,960 --> 00:08:39,880 Speaker 1: Plus in their homes right now if they choose to. 171 00:08:40,760 --> 00:08:44,280 Speaker 2: If it's about the customers. Now that you've had some 172 00:08:44,400 --> 00:08:46,240 Speaker 2: time in this role, and I know you think so 173 00:08:46,320 --> 00:08:50,119 Speaker 2: deeply about everything from supply chain through to the product itself, 174 00:08:50,840 --> 00:08:53,840 Speaker 2: the in housework on silicon, we've been over that. But 175 00:08:54,000 --> 00:08:56,920 Speaker 2: is there a pressure to make this device's businesses a 176 00:08:56,960 --> 00:09:00,480 Speaker 2: division profitable or is it not necessary if there is 177 00:09:00,480 --> 00:09:05,800 Speaker 2: some bigger picture goal here, Yeah, no. 178 00:09:05,800 --> 00:09:08,679 Speaker 1: It's it is about it is well first there's you know, 179 00:09:08,720 --> 00:09:11,080 Speaker 1: there's a lot of different device businesses, so you know, 180 00:09:11,160 --> 00:09:14,000 Speaker 1: but also it is about making you know, creating the 181 00:09:14,040 --> 00:09:16,200 Speaker 1: next big business for Amazon, and you know, we see 182 00:09:16,200 --> 00:09:18,320 Speaker 1: that growth and we're pretty excited about it. 183 00:09:18,480 --> 00:09:20,600 Speaker 2: Panos, there was actually a really large range of things, right, 184 00:09:20,640 --> 00:09:23,400 Speaker 2: I think you're you're alluding to Ring as being one 185 00:09:23,400 --> 00:09:26,920 Speaker 2: of the the the offerings today right across the broad 186 00:09:27,040 --> 00:09:30,840 Speaker 2: range of of hardware domains in product line. You know, 187 00:09:30,920 --> 00:09:35,640 Speaker 2: if there is one single device that is most important 188 00:09:35,760 --> 00:09:37,720 Speaker 2: that you've gone through today, which is it? Please? 189 00:09:40,760 --> 00:09:45,080 Speaker 1: You can't please? Yeah? Well, and it's like asking me 190 00:09:45,120 --> 00:09:47,400 Speaker 1: what it's like asking you what my favorite who my 191 00:09:47,440 --> 00:09:49,040 Speaker 1: favorite child is that I have for of them? I 192 00:09:49,080 --> 00:09:53,480 Speaker 1: made that mistake once quite literally, and I have to 193 00:09:53,520 --> 00:09:56,160 Speaker 1: tell you, like, I mean, these products are all pretty amazing. 194 00:09:56,600 --> 00:09:59,400 Speaker 1: I think the Ring product family is stunning right now. 195 00:09:59,440 --> 00:10:02,280 Speaker 1: In four K. Kindle is a product that I'm in 196 00:10:02,320 --> 00:10:04,560 Speaker 1: love with every day and use every day alongside Ring, 197 00:10:04,559 --> 00:10:07,520 Speaker 1: and then the Eco devices are also lighting things up. 198 00:10:07,559 --> 00:10:09,800 Speaker 1: Fire TV is used by hundreds of millions of people. 199 00:10:09,840 --> 00:10:12,280 Speaker 1: So picking is a little bit tricky for me. It's 200 00:10:12,320 --> 00:10:14,880 Speaker 1: like picking my favorite is something I don't I definitely 201 00:10:14,920 --> 00:10:16,920 Speaker 1: don't want the team to team to say, so I'm 202 00:10:16,960 --> 00:10:18,840 Speaker 1: going to say like I think, I think, I'm going 203 00:10:18,880 --> 00:10:20,600 Speaker 1: to treat that and hold them all up equally as 204 00:10:20,679 --> 00:10:23,400 Speaker 1: most as important as Really it does come down to 205 00:10:23,440 --> 00:10:25,560 Speaker 1: how they all connect together. So that's real. It does. 206 00:10:26,480 --> 00:10:29,240 Speaker 2: As you've explained, Panos, it is a broad offering with 207 00:10:29,400 --> 00:10:32,360 Speaker 2: lots of different subcategories, and I appreciate you taking the 208 00:10:32,360 --> 00:10:34,440 Speaker 2: time and going so deep on it with me, Panels 209 00:10:34,480 --> 00:10:37,640 Speaker 2: Pana the device is chief Amazon really grateful for your time.