More than a decade after its infamous Fire Phone flop, Amazon is quietly plotting a bold return to one of tech’s most competitive arenas—but this time, it’s betting on artificial intelligence to rewrite the story. Sources say the company is developing a mysterious new device designed to seamlessly weave its ecosystem, from shopping to streaming, into a deeply personalized, voice-driven experience powered by Alexa. With ambitions to challenge giants like Apple and Samsung, the question isn’t just whether Amazon can succeed—but whether this AI-first smartphone could fundamentally change how we use our devices every day.
Amazon’s ‘Transformer’ phone signals a high-stakes comeback
Twelve years after the Fire Phone’s $170 million crash and burn, Amazon is reportedly preparing for a high-stakes return to the smartphone arena. According to a new report by Reuters, the retail giant is quietly developing a new device under the internal codename “Transformer.”
Four sources familiar with the matter told the news outlet that the project represents a modern evolution of founder Jeff Bezos’s long-standing dream to create a ubiquitous, voice-activated assistant inspired by the “Star Trek” computer. Here is how Amazon plans to rewrite its mobile legacy:
A new strategy: AI over apps
Unlike the 2014 attempt, which focused on 3D visuals and integrated shopping, “Transformer” is leaning heavily into artificial intelligence.
- The “app-less” vision: Sources suggest the device could use AI to perform tasks directly, potentially eliminating the need for traditional app stores where users must manually download and register for individual applications. One source of inspiration for the new device is the Light Phone, two of the people said—a $700 minimalist smartphone that includes only essential features like a camera, maps, and a calendar, while leaving out extras such as an app store.
- The Alexa factor: While Alexa is expected to be a core feature, it may not serve as the phone’s primary operating system, acting instead as the intelligent layer that connects the user to Amazon’s ecosystem.
The ultimate mobile conduit
Amazon views the device as a potential mobile personalization device designed to follow the customer throughout their day. The goal is to create a seamless bridge between a user’s home and their mobile life, making it easier than ever to:
- Order through Amazon.com or partners like Grubhub.
- Stream content via Prime Video and Prime Music.
- Provide Amazon with a wealth of new data—from location habits to content preferences—that is currently only accessible via mobile.
When will Amazon’s ‘Transformer’ phone be available?
The “Transformer” project is currently the crown jewel of ZeroOne, a specialized team formed just a year ago within Amazon’s devices and services unit. This group is tasked with creating breakthrough gadgets that move the needle for the company’s hardware reputation.
Leading ZeroOne team is J Allard, a former Microsoft heavy-hitter known for his work on the Xbox and the Zune. He reports to Panos Panay, the head of Amazon’s devices and services unit, who is under significant pressure to “reverse years of unprofitability in the division.”
While the “Transformer” phone sounds promising, key details about the new gadget remain unclear. Specifics such as its expected price, projected revenue, or how much Amazon has invested in the initiative so far are currently unknown.
Alongside the “Transformer” phone, the ZeroOne team is also developing a new tablet that, for the first time, will run on Android instead of Fire OS, with an expected price of around $400.
Can Amazon find success the second time around?
Amazon’s return to the mobile market comes at a precarious moment for the industry. While the company is determined to move past its previous hardware failures, the path to market dominance is steeper than ever.
The challenge
Industry experts remain cautious about Amazon’s ability to disrupt the status quo. Colin Sebastian, an analyst at R.W. Baird, notes that while a previous failure doesn’t make a comeback impossible, it remains a monumental task. However, Sebastian told Reuters that “Amazon will have to give consumers a compelling reason to switch phones and people are pretty attached to the existing app stores.”
The competition
The competitive landscape hasn’t gotten any easier since 2014. Amazon is once again facing off against the industry’s giants Apple and Samsung, which continue to hold a massive lead, together commanding 40% of global sales last year, according to Counterpoint Research.
The economic headwinds
The timing of “Transformer” project also coincides with a significant industry downturn. According to IDC, smartphone shipments are projected to plunge 13% in 2026—the sharpest decline on record. This slump is largely driven by surging memory chip prices, which are forcing manufacturers to hike device costs just as consumer demand begins to cool.
Source: Reuters