More than ten years after its Fire Phone failure, led by Jeff Bezos, Amazon is preparing a return to smartphone market.

The latest effort, known internally as “Transformer,” is being developed within its devices and services unit, according to four people familiar with the matter. The phone is seen as a potential mobile personalization device that can sync with home voice assistant Alexa and serve as a conduit to Amazon customers throughout the day, the people said.

The initiative is the newest chapter in a years-long effort to bring to market Bezos’ long-held vision of a ubiquitous voice-driven computing assistant akin to the voice-controlled computer in science fiction series “Star Trek.”

Jeff Bezos had imagined a smartphone focused on shopping, designed to compete with Apple by offering fast shipping and discounts through Prime. At the same time, it would give Amazon access to valuable user data, combining information from the phone with customers’ shopping habits and content preferences.

Amazon’s effort to develop a new smartphone has not been previously reported. The details that remain unclear are

• the price of the phone,
• the revenue Amazon hopes to generate,
• the financial commitment Amazon has made to the project,
• the timeline for Amazon's Transformer project.

An Amazon spokesperson declined to comment for this story.

As envisioned, the new phone’s personalization features would make buying from Amazon.com, watching Prime Video, listening to Prime Music or ordering food from partners like Grubhub easier than ever, the people said. They asked for anonymity because they were not authorized to discuss internal matters.

A key focus of the Transformer project has been integrating artificial intelligence capabilities into the device, according to Reuters’ sources. That could eliminate the need for traditional app stores, which require downloading and registering for applications before they can be used.

Alexa would likely be a core feature but not necessarily the primary operating system of the phone, the people said.

There is precedent for that, as early AI devices like the Humane AI Pin and Rabbit R1 failed and were later discontinued. Still, companies continue to develop AI-first hardware that moves away from traditional smartphone apps. OpenAI is working with former Apple designer Jony Ive on new devices, while Apple, Google, and Meta are exploring AI-powered glasses, watches, and headphones.

Although Amazon leads in cloud computing with AWS, it has lagged behind rivals in AI applications. Alexa, which was updated with new AI features in 2025, is seen as central to Amazon’s future. The new phone is another effort to push more AI use, either directly on the device or through Alexa.

Amazon’s first phone failed and the risks remain

Amazon's initial entry into the smartphone market in 2014 included features such as a camera-based shopping tool that recognized products, found them for sale on Amazon.com and put them in customers’ online carts.

The Fire Phone’s proprietary Fire OS lacked popular apps available in the Android and iOS app stores, and had a complicated multi‑camera screen system for displaying 3D images that used so much battery power that the handset often overheated.

Amazon packaged the Fire Phone with a free year of Amazon Prime, but it nonetheless sold poorly. Amazon cut the price from $649 unlocked to $159 and ultimately canceled the phone after 14 months, taking a $170 million charge for unsold inventory.

Colin Sebastian, analyst at financial firm R.W. Baird, told Reuters the fact that Amazon has failed before with a smartphone doesn’t make it insurmountable to try again, but cautioned that it will be difficult.

“Amazon will have to give consumers a compelling reason to switch phones and people are pretty attached to the existing app stores,” he said.

As it did over a decade ago, Amazon faces the daunting task of unseating market leaders Apple and Samsung, which together commanded about 40% of global sales last year, according to Counterpoint Research, a technology-focused market research firm.

And smartphone shipments are headed for their biggest decline ever in 2026, expected to plunge 13%, according to International Data Corporation, as surging memory chip prices drive up device costs.

Amazon weighs both smart and “dumb” phone options

The project is being led by a year-old group within Amazon’s devices unit called ZeroOne, whose mandate is to create “breakthrough” gadgets, the people said. ZeroOne is led by J Allard, a former Microsoft executive involved in such devices as the Zune music player and Xbox gaming console.

The head of Amazon’s devices and services unit, Panos Panay, has been working to reverse years of unprofitability in the division. That includes a forthcoming tablet that will—for the first time—run Android instead of Fire OS and could sell for around $400, which Reuters was first to report.

Three people who have worked on the Transformer project said the phone is still under development. The company has explored both a traditional smartphone and a so‑called “dumbphone” with more limited features that could help counter screen addiction. Amazon has not yet sought wireless carrier partners for the device, these people said.

One inspiration for the new phone has been the Light Phone, two of the people said, a $700 minimalist smartphone with a camera, map, calendar and not much else, such as an app store or web browser.

A dumbphone or feature phone could also help Amazon market it as a potential second handset to accompany iPhones and Samsung Galaxies already in customers’ pockets, the people said. Such handsets, like the Light Phone and flip phones, accounted for 15% of global handset sales in 2025, according to Counterpoint Research.

Scant data exists on how many people carry more than one phone, said Chetan Sharma, an independent wireless analyst. Nowadays, he said, the practice is most common among white-collar workers who want a second phone away from the prying eyes of their employers or parents who want a device to give to teenagers to limit access to social media.

---

Unlock more exclusive Cybernews content on YouTube.