According to Reuters, Amazon is planning to return to the smartphone hardware market more than a decade after the original Fire Phone failed. A new mobile phone project internally codenamed "Transformer" is currently under development. The device focuses on AI integration and mobile personalization. It aims to reshape users' digital lives and break down traditional application ecological barriers by deeply binding the voice assistant Alexa.
The project is led by the one-year-old ZeroOne innovation team of Amazon’s device division, whose core mission is to create breakthrough electronic devices. According to people familiar with the matter, the project is led by former Microsoft executive J Allard. The core focus of the new mobile phone is the underlying access to artificial intelligence capabilities, which attempts to eliminate the cumbersome download and registration process of traditional app stores, allowing users to more conveniently use ecological services such as Amazon shopping, Prime audio and video, and Grubhub through natural interactions. While Alexa will be a core feature throughout, insiders say it won't necessarily be the device's only primary operating system.
The R&D team is currently evaluating two product routes in parallel: one is a traditional smartphone, and the other is a minimalist feature phone inspired by the Light Phone. The latter is designed to reduce users' screen addiction and is expected to enter the market as a second backup device for Apple or Samsung users. Amazon launched its first mobile phone, the Fire Phone, in 2014 under the personal supervision of founder Jeff Bezos. However, due to the lack of mainstream applications and serious power consumption of the 3D function, the product was canceled after 14 months, resulting in an impairment of US$170 million in unsold inventory.
Faced with the current solid pattern of Apple and Samsung accounting for about 40% of global sales, and industry organization IDC predicting that global smartphone shipments will experience a historic decline of 13% in 2026, Amazon's hardware renaissance faces extremely high market thresholds. At present, the expected pricing, capital investment and specific release schedule of the "Transformer" project have not been finalized. If the company's strategy changes or is subject to financial pressure, the project may still be shelved at any time.