Amazon is reportedly preparing a major return to the smartphone market, more than a decade after its first attempt, the Fire Phone, ended in commercial failure. The new device, codenamed ‘Transformer’, is being developed by Amazon’s experimental hardware team, the ZeroOne Group, and aims to put AI and Alexa integration at the center of the experience, reports Reuters. Unlike the Fire Phone, which struggled with limited apps and low sales, this phone is expected to focus on shopping, media, and smart home features.
The Transformer initiative represents a major shift in Amazon’s hardware strategy. While the Fire Phone relied on gimmicky 3D features and lacked a compelling app ecosystem, the new device is being designed around practical AI functionality and integration with Amazon’s extensive ecosystem of services. According to the report, the phone will leverage Alexa in deeper ways than before, potentially allowing users to shop, stream video, control smart home devices, and manage content entirely through voice and AI-driven interactions. Overall, the focus is on turning the smartphone into a central hub for Amazon’s digital ecosystem.
The project is led by J Allard, a veteran technology executive who previously worked at Microsoft and has a history of leading ambitious consumer electronics projects. The report suggests that the team may experiment with multiple form factors, including a traditional smartphone and a minimalist ‘AI-first’ device that prioritizes core services and assistant functionality over apps or hardware features.
Amazon’s original Fire Phone, released in 2014, was widely regarded as a commercial mistake. The device was discontinued within a year, with estimates suggesting Amazon took a loss of around $170 million on unsold inventory. But despite this setback, the e-commerce giant found success in other hardware categories, including Echo smart speakers, Kindle e-readers, Fire tablets, and Ring smart home devices.
And now, the Transformer project is expected to be AI-centric in ways previous Amazon devices were not. While current Alexa-enabled devices offer voice commands and automation, this phone could incorporate generative AI features, predictive assistance, and smarter contextual awareness. However, launching a smartphone still remains a significant challenge. Notably, Apple and Samsung control most of the global smartphone market, while other competitors like Google have built small but strong niches with software and AI features. On top of that, worldwide smartphone sales have slowed, and buyers are becoming more careful and selective about which devices they choose.
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