Apple HomeView, an iPad-like device that can be hung on a wall or placed on a tabletop, shows off the AI-upgraded Siri virtual assistant at a smart home product launch event held in New York City, USA on October 13, 2026.
Shannon Stapleton Reuter
With the holiday season just a few months away, tech companies are betting that this is the year that AI will finally start appearing under the Christmas tree.
apple, Amazon and microsoft Over the past week, companies have announced new devices aimed at bringing generative artificial intelligence firmly into the home. Nearly four years after the launch of ChatGPT, major consumer technology companies are touting improved personal assistants and faster on-device chips with AI capabilities in an effort to sell new laptops, tablets, phones, and smart home computers.
Success is not guaranteed. In addition to consumer sentiment data being at a 12-year low, largely due to stubborn inflation and growing concerns about the potential safety risks of AI, new technologies come with a learning curve. IDC analyst Jitesh Ubrani said tech companies want to bring AI to consumers to lay the groundwork for more aggressive device launches in the coming years.
“This is really about getting the device into the consumer’s hands, getting it into their home, slowly teaching them how to use it and getting their feedback,” Ubrani said, adding that new gadgets from Apple, Amazon and Microsoft are not expected to sell in large numbers, at least for now.
Given the macro headwinds, getting wealthy early adopters on board now could be a win. Power-hungry AI servers consume most of the capacity, driving up the cost of components, especially memory and storage, and increasing overall hardware prices. These price hikes have led to a significant drop in shipments of new smartphones and laptops this year.
Last week, Microsoft Nvidia-Windows laptops starting at $2,599 based on an AI chip called RTX Spark that can run powerful AI without relying on the cloud.
Amazon went on to release the Alexa tablet, the company’s first piece of hardware named after the smart assistant. The largest Alexa Tablet 12 Pro costs $550, while its predecessor, the Fire HD10, costs $155.
And this Tuesday, Apple announced the HomeView smart home hub, powered by Siri AI. The $299 device includes an attachable 7-inch screen and facial recognition software so it can be customized for multiple families.
Analysts praised Apple for introducing HomeView at an affordable price considering parts shortages.
“Apple has prioritized ecosystem adoption over immediate high hardware profits, offering local AI hubs at prices below what spec-heavy machines would logically require,” Mohit Agrawal, an AI expert at CounterPoint Research, said in an email.
“What can we do with AI?”
Forrester analyst Dipanjan Chatterjee said the shopping season will be an early test of consumer demand for new classes of equipment.
“I think consumers are interested in what AI can do,” Chatterjee said. “What’s less clear is whether they’re interested in buying the hardware specifically because it’s an AI device.”
Despite the many economic headwinds, the outlook for holiday spending remains strong. Nearly half of U.S. consumers expect to spend the same amount or more this holiday season than they did last year, according to a McKinsey survey released in August.
And Bain released a report last month predicting that U.S. retail sales during the holiday period would set a new record, topping $1 trillion for the first time. But analysts warned that “more than half of the nominal sales growth is due to higher inflation,” pushing up prices. The company predicted sales of some electronics and consumer electronics products would remain flat.
“Now that people are a little bit more money-conscious, they’re going to say, ‘Do I really need this next thing or am I willing to extend my replacement cycle for whatever it is?'” Aaron Chellis, head of global retail operations at Bain, said in an interview. “We have seen discretionary purchases prolong.”
All three makers of new AI gadgets highlighted increasingly intelligent assistants and more powerful chips to run them.
Amazon announced it is discontinuing its budget-friendly Fire family of devices in favor of three new Alexa tablets that feature a more premium design with the enhanced AI assistant front and center. Users can say “Alexa” or tap the “Ask Alexa” button to summon the assistant to ask questions, get personalized recommendations, and take control of their smart home.
Amazon also introduced a hands-free mode called “On-Screen Intelligence,” which allows Alexa to read content on the tablet’s display and perform actions such as creating shopping lists based on cooking videos. Microsoft’s new laptops with Nvidia chips can run AI coding models.
Apple’s HomeView uses Apple Intelligence to proactively display text messages, calendar events, and photos to users. Apple expects users to talk to their devices and is emphasizing Siri’s ability to answer a wide range of questions, similar to the experience users are getting with modern chatbots.
Apple also noted that HomeView uses the A18 chip, which was the world’s fastest smartphone chip when it was first introduced in September 2024.
Carolina Milanesi, an analyst at research firm Creative Strategies, said companies need to assess whether users are attracted to the prospect of paying more for more processing power.
“I don’t think consumers are yet convinced that what’s on the device matters that much, especially when they’re being told to spend more money on it,” Milanesi said.
Orama CEO Jeff Morgan said computers that give users control have their supporters. His startup’s open-source software allows models to be installed and used on a variety of computers.
“I think there’s a difference between owning AI and renting it,” he says.
Additionally, there are long-term opportunities that companies are pursuing. This includes getting consumers to buy subscriptions and securing recurring revenue.
Amazon’s new Alexa requires a $19.99 monthly subscription, or Prime membership. Apple users must purchase an upgraded iCloud subscription to record secure videos.
Apple’s biggest AI announcement could come next week when the company’s new $1,999 iPhone Duo hits stores. The foldable iPhone can display two apps side-by-side, including chatting with Siri, giving the AI agent a desktop-like interface.
Featured: Amazon’s Alexa Tablet
