Amazon is reportedly working on a new smartphone project. According to a Reuters report, this new project is internally called “Transformer,” as it revisits its earlier attempt in the category following the Fire Phone’s discontinuation in 2015. The report cited people familiar with the matter to say that the device is being developed within the company’s devices and services unit and is expected to function as a personalised mobile hub, closely integrated with its voice assistant, Alexa.The effort expresses a renewed push tied to Amazon founder Jeff Bezos’ long-standing vision of a voice-driven computing ecosystem, similar to concepts seen in science fiction such as “Star Trek.” The proposed phone could focus on linking with home devices, enabling shopping features linked to Prime membership, and offering Amazon deeper access to user data through mobile usage patterns, the Reuters report claims.However, several details, including pricing, expected revenue, and overall investment, remain unclear. The project’s timeline has also not been finalised, and sources indicated it could still be shelved depending on strategic or financial considerations, the Reuters report added.
What we know about Amazon’s rumoured smartphone
According to Reuters sources, the new phone’s personalisation features are expected to simplify activities such as shopping on Amazon.com, streaming Prime Video, listening to Prime Music, or ordering food from partners like Grubhub. The Transformer project is also focused on embedding artificial intelligence (AI) capabilities into the device. This approach could reduce reliance on traditional app stores, which typically require users to download and register for apps before use. Alexa is expected to play a central role, though it may not serve as the phone’s primary operating system, the report adds.According to people familiar with the work, the Transformer phone is still in development. Amazon has explored both a standard smartphone and a more limited “dumbphone” design aimed at cutting screen usage. The company has not yet engaged wireless carrier partners for the device, the report notes.Meanwhile, Panos Panay, who leads Amazon’s devices and services unit, has been working to address the division’s ongoing losses. This includes plans for a new tablet expected to run Android rather than Fire OS, priced around $400.Amazon’s earlier smartphone effort in 2014 included features such as a camera-based tool that identified products and added them to users’ Amazon.com carts. However, the Fire Phone’s Fire OS lacked widely used apps available on Android and iOS, and its multi-camera system for 3D visuals consumed significant battery power, often leading to overheating.The company bundled the Fire Phone with a free year of Amazon Prime, but sales remained limited. The price was reduced from $649 to $159 before the device was discontinued after 14 months, with Amazon taking a $170 million charge related to unsold inventory.Efforts to build AI-focused hardware have experienced obstacles in the past. Devices such as the Humane AI Pin and Rabbit R1 assistant aimed to deliver generative AI experiences without requiring users to log in to computers or smartphones, but were later discontinued following low adoption.Other companies continue to explore AI-native devices that move away from app-based smartphone interfaces. OpenAI is working with former Apple design chief Jony Ive on hardware prototypes, while Apple, Google and Meta are developing AI-enabled products such as glasses, watches and headphones.On the other hand, Amazon Web Services has made efforts to dispel rumours that it delivers AI-driven apps more slowly than rivals, even though it remains a major supplier of cloud computing infrastructure. Moreover, Alexa, which underwent a multi-year AI-led redesign prior to its 2025 relaunch, is an important component of Amazon’s consumer services strategy. The new phone is perceived as yet another effort to boost consumer interaction with AI, either through Alexa or directly on the device.
