Amazon is developing a new smartphone as it aims to re-enter the mobile market more than a decade after its first device, the Fire Phone, failed.
Internally called Transformer, the project is being developed within Amazon's Devices and Services unit, people familiar with the matter told Reuters.
The Transformer is reportedly designed as a personalised device that can sync with Alexa and serve as a daily interface for Amazon customers. Details such as pricing, revenue goals, and Amazon's financial commitment have not been disclosed. Sources said the project could be cancelled if strategies shift or financial concerns arise.
Amazon's Transformer Phone: Features
- The phone is expected to make shopping on Amazon.com easier.
- Watching Prime Video could become more seamless.
- Listening to Prime Music may be simplified.
- Ordering from partners like Grubhub is anticipated to be more convenient.
- AI integration is likely a key focus.
- Alexa is expected to play a central role, though it may not be the primary operating system.
The new phone could be a traditional smartphone or a minimalist “dumbphone,” inspired by devices like the Light Phone. A simpler device could serve as a second handset alongside iPhones or Samsung devices.
This comes as other tech companies, including Apple, Google, Meta, and OpenAI, develop AI-embedded devices such as glasses, watches, and headphones.
While AWS dominates cloud computing, Amazon has trailed in consumer AI applications. The Transformer is another attempt to increase customer AI engagement.
ZeroOne
The Transformer project is led by ZeroOne, a group within Amazon Devices tasked with creating “breakthrough” gadgets. ZeroOne is headed by J Allard, a former Microsoft executive. Panos Panay, head of Amazon Devices and Services, is also working to improve profitability, including with a new Android-based tablet expected to sell for around $400.
Feature phones and minimalist phones accounted for 15% of global sales in 2025, according to Counterpoint Research.
Apple and Samsung together held about 40% of global smartphone sales last year, while global shipments are expected to decline 13% in 2026 due to rising memory chip costs.
The Fire Phone
Amazon's first smartphone, the Fire Phone, launched in 2014 with features like Dynamic Perspective, Firefly, X-Ray, and Mayday. Manufactured by Foxconn, it was sold as an AT&T exclusive in the US.
The Fire Phone's Fire OS lacked popular Android and iOS apps, and its multi-camera 3D system drained battery quickly. Initially priced at $649, the phone failed to sell despite a free year of Prime. Amazon cut the price to $159 and eventually cancelled the device after 14 months, taking a $170 million loss on unsold inventory.
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