Amazon plans smartphone comeback with AI and Alexa at its core, over a decade after Fire Phone

Amazon is making an Alexa phone

App availability was a major challenge for the original Fire Phone, and something Amazon may try to avoid entirely this time around. According to people familiar with the new phone, "integrating artificial intelligence capabilities into the device" has been a central focus, which could mean "Transformer" may rely on mini apps like those available in ChatGPT, rather than a fully-fledged app store. There is no timeline yet for when Amazon will release "Transformer," if ever, or how much it could cost. The original Fire Phone launched at $199, but it failed to catch on and Amazon scrapped it a year after its release. Amazon has been pushing to keep up with its rivals in AI over recent years, which may be driving it to reignite its smartphone ambitions. However, it may still face an uphill battle winning over users on its revamped version of Alexa -- users posted complaints online after getting automatically upgraded to the LLM-powered Alexa Plus earlier this year, saying it was "flooded with ads" and took longer to respond to queries.

Exclusive: Amazon plans smartphone comeback more than a decade after Fire Phone flop

SAN FRANCISCO, March 20 (Reuters) - In 2014, Amazon (AMZN.O), opens new tab introduced its first smartphone, hoping to take on Apple and Samsung. Instead, the Fire Phone - overseen directly by founder Jeff Bezos - was scrapped in barely over a year, one of Amazon's highest-profile flops. Now, Amazon is dialing up a new phone. 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, opens new tab of a ubiquitous voice-driven computing assistant akin to the voice-controlled computer in science fiction series "Star Trek." Bezos had envisioned a smartphone that had shopping at its core and could take on Apple by offering shipping convenience and discounts through the Prime membership. Along the way, Amazon could gain a wealth of new data about users only available through mobile phones combined with purchase history and content preferences. Amazon's effort to develop a new smartphone has not been previously reported. Reuters could not determine some details, such as the anticipated price of the phone, the revenue Amazon hopes to generate, or the financial commitment Amazon has made to the project. The timeline for Amazon's Transformer project is also unclear, and the people cautioned it could be scrapped if the strategy shifts or due to financial concerns. 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, the people said. 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. Indeed, the short history of AI-embedded hardware is full of failed entrants, including the Humane AI pin and Rabbit R1 assistant which both sought to make generative AI available without the need to log in to computers or mobile phones. Following poor critical receptions, the gadgets were discontinued. That has not deterred others from pursuing AI-native devices that do away with the app-driven visual language of smartphones. OpenAI is working with former Apple design chief Jony Ive on several hardware prototypes, while Apple, Google and Meta are developing new AI-embedded glasses and other devices, such as watches and headphones. While Amazon's AWS is dominant in providing global cloud computing infrastructure, the company has sought to overcome a reputation for being flat-footed in offering AI applications as rivals have sped ahead. Alexa, which underwent a multi-year AI-led revamp before its new launch in 2025, is seen internally as critical to Amazon's future in consumer-facing services. The phone, the people said, is another attempt by Amazon to accelerate customers' AI usage either on the device or through Alexa. FIRED PHONE 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, said 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. MANDATE FOR 'BREAKTHROUGH' GADGETS 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. Reporting by Greg Bensinger in San Francisco; Editing by Kenneth Li and Michael Learmonth Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Technology Greg Bensinger Thomson Reuters Greg Bensinger joined Reuters as a technology correspondent in 2022 focusing on the world's largest technology companies. He was previously a member of The New York Times editorial board and a technology beat reporter for The Washington Post and The Wall Street Journal. He also worked for Bloomberg News writing about the auto and telecommunications industries. He studied English literature at The University of Virginia and graduate journalism at Columbia University. Greg lives in San Francisco with his wife and two children.

Amazon developing Fire Phone successor to take on iPhone with Alexa AI focus - 9to5Mac

After getting burned by the Fire Phone in 2014, Amazon is reportedly developing a new iPhone competitor for the current decade. The company's revitalized hardware division is taking inspiration from Alexa instead of 3D this time around. Reuters reports that a project internally known as "Transformer" is Amazon's modern attempt at developing a voice assistant-centric smartphone. 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. While founder and chairman Jeff Bezos no longer holds the CEO title, the initiative reportedly dates back to his ambitions to compete with Apple in the smartphone space. 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." Bezos had envisioned a smartphone that had shopping at its core and could take on Apple by offering shipping convenience and discounts through the Prime membership. Along the way, Amazon could gain a wealth of new data about users only available through mobile phones combined with purchase history and content preferences. There were an awful lot of good Fire Phone puns at the time, at least. Samsung eventually took the heat off Amazon's Fire Phone when the smartphone heavyweight released the Note 7, a phone that actually routinely caught fire. Trailblazers, galore. Anyway, Reuters reports that Amazon's hardware division has a mandate to create "breakthrough" products. Meanwhile, the killer feature sounds like using Amazon services. Per the report: 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. In theory, one path forward that could make sense is bolstering Alexa+ as an AI tool. If customers found enough value in Alexa+ in various areas of life, having Alexa be the focus of the phone could be competitive.

Amazon is launching a phone again

This is according to a Reuters report, which cites four people familiar with the matter. The new phone is internally known as "Transformer," and the company wants to make it a "mobile personalization device" that syncs with Amazon's smart assistant Alexa. The idea, according to the report, is for the phone to make interacting with various Amazon services easier. This includes buying from Amazon, watching Prime Video, or listening to Prime Music. Of course, AI would be in the middle of it all, though Alexa may not be the "primary operating system" of the phone. We're not quite sure what that means, but it seems to imply that Amazon might rely on another company's AI to run things on the phone. If this sounds familiar, you might be thinking of Amazon's Fire Phone, which launched in 2014 and was pulled from the market roughly a year later. While the Fire Phone has been a massive flop for Amazon, things are very different now. The Fire Phone's primary claim to fame was a pseudo 3D user interface, and artificial intelligence was nowhere near as smart as it is these days. The report says that the new Amazon phone is still in early stages, and may be scrapped by Amazon entirely. The anticipated launch date, price of the phone, or the revenue Amazon hopes to generate selling the phone, are all unknowns at this point.

Amazon is giving smartphones a second try, and you can probably guess what it's all about

Amazon tried making a phone once. It flopped spectacularly. Now it's back for round two, and this time it's all about AI. Amazon burned its fingers with the Fire Phone back in 2014. The device, personally overseen by Jeff Bezos, lasted barely over a year before Amazon pulled the plug and wrote off $170 million in unsold inventory. Now, the company is taking another shot at the smartphone market. According to Reuters, Amazon is developing a new phone internally under the codename "Transformer." The project is part of a group called ZeroOne, which focuses on building breakthrough devices. It is led by J Allard, a former Microsoft executive who helped bring the Xbox and Zune to market. What will the Amazon phone actually do? The phone is being designed as a personalization device, one that keeps you connected to Alexa, Prime Video, Prime Music, and Amazon shopping throughout your day. A key focus is AI integration, which could eliminate the need for traditional app stores entirely. Think less scrolling through apps and more just asking Alexa to get things done. Recommended Videos The concept is similar to what Carl Pei described as the future of Nothing phones in his recent SXSW interview. Interestingly, Amazon has also explored a "dumbphone" version with limited features, partly inspired by the Light Phone. A simpler device could help Amazon pitch it as a second phone that cuts through the noise rather than adding to it. Will it actually work this time? That's the big question. The Fire Phone failed because it lacked popular apps, overheated, and gave people very little reason to ditch their iPhones or Android devices. Amazon faces the same challenge now, with Apple and Samsung still controlling roughly 40% of global smartphone sales between them. Amazon is betting that a phone built around Alexa and its massive ecosystem might be different. Whether consumers agree is another story entirely. The timeline for Transformer remains unclear, and Reuters notes it could still be scrapped. In my opinion, the dumbphone idea would be a better starting point for Amazon. Competing in an already saturated smartphone market would be difficult, so positioning an AI-powered "dumbphone" as a secondary device that assists with shopping could be an idea users get behind.

Exclusive-Amazon Plans Smartphone Comeback More Than a Decade After Fire Phone Flop

SAN FRANCISCO, March 20 (Reuters) - In 2014, Amazon introduced its first smartphone, hoping to take on Apple and Samsung. Instead, the Fire Phone - ⁠overseen directly ⁠by founder Jeff Bezos - was scrapped in barely over a year, one of ⁠Amazon's highest-profile flops. Now, Amazon is dialing up a new phone. 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." Bezos had envisioned a smartphone that had shopping at its core and could take on Apple by offering shipping convenience and discounts through the Prime membership. Along the way, Amazon could gain a wealth of new data about users only available through mobile phones combined with purchase history and content preferences. Amazon's effort to ⁠develop a new smartphone has not ⁠been previously reported. Reuters could not determine some details, such as the anticipated price of the phone, the revenue Amazon hopes to generate, or the financial commitment Amazon has made to the project. The timeline for Amazon's Transformer project is also unclear, and the people cautioned it could be scrapped if the strategy shifts or due to financial concerns. 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, the people said. 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. Indeed, the short history of AI-embedded hardware is ⁠full ⁠of failed entrants, including the Humane AI pin and Rabbit ⁠R1 assistant which both sought to make generative AI available without the need to log in to computers or mobile phones. Following poor critical receptions, the gadgets were discontinued. That has not deterred others from pursuing AI-native devices that do away with the app-driven visual language of smartphones. OpenAI is working with former Apple design chief Jony Ive on several hardware prototypes, while ⁠Apple, Google and Meta are developing new AI-embedded glasses and other devices, such as watches and headphones. While Amazon's AWS is dominant in providing global cloud computing infrastructure, the company has sought to overcome a reputation for being flat-footed in offering AI applications as rivals have sped ahead. Alexa, which underwent a multi-year AI-led revamp before its new launch in 2025, is seen internally as critical to Amazon's future in consumer-facing services. The phone, the people said, is another attempt by Amazon to accelerate customers' AI usage either on the device or through Alexa. FIRED PHONE 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, said 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. MANDATE FOR 'BREAKTHROUGH' GADGETS 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. (Reporting by Greg Bensinger in San Francisco; Editing by Kenneth Li and Michael Learmonth)

Amazon Could Soon Launch a Smartphone Inspired By This Handset

* Amazon is reportedly developing a new smartphone * This project is led by Amazon's devices and services unit * Amazon Fire phone was launched in June 2014 Amazon released the Amazon Fire Phone as its first smartphone in 2014, only to discontinue the handset within a year. Now, the e-commerce giant is reportedly working on a new smartphone. The upcoming device could integrate with Amazon's voice assistant Alexa and keep users connected to Amazon's ecosystem. It is said to come with inbuilt artificial intelligence capabilities, with Alexa likely playing a key role. The project is said to be headed by a year-old group within Amazon's devices unit called ZeroOne. The new handset is inspired by the minimalist Light Phone. Amazon May Bring an AI-Enabled Smartphone Following Fire Phone's Exit Citing four unnamed sources, Reuters reports that Amazon is developing a new smartphone under a project internally known as "Transformer." This project is led by the devices and services unit, and it is seen as a personalised mobile device that can sync with Alexa. The voice assistant will likely function as a constant touchpoint between Amazon and its users throughout the day. The Transformer project is said to be part of a long-standing vision by Jeff Bezos for a "ubiquitous voice-driven computing assistant akin to the voice-controlled computer in science fiction series Star Trek". Bezos reportedly envisioned a smartphone with a focus on shopping, which could take on Apple by providing fast shipping and discounts through Amazon Prime membership. Details about the pricing and launch timeline of the Transformer project remain unclear. The report states that the project could still be shelved if the strategy shifts or due to financial concerns. Amazon's Transformer project is reportedly led by a new team within Amazon's devices division called ZeroOne. The group is led by former Microsoft executive J Allard, who formerly worked on products like the Zune and the Xbox. The Light Phone, which includes basic features, is said to be the inspiration for the new Amazon phone. Amazon's purported smartphone is likely to emphasise personalisation, and it might enable users to easily shop on Amazon and stream content via Prime Video. It could also let users quickly access Prime Music and order food through Grubhub. The project could offer integrated advanced AI features, eliminating the need for traditional app stores, which require downloading and registering for apps. The voice assistant Alexa is expected to play a key role in the device. Amazon Fire Phone was launched in June 2014 with a price tag of $649 (roughly Rs. 60,000). Amazon discontinued sales of this model in September 2015 after it struggled to gain market demand.

Amazon working on new smartphone years after Fire Phone flop: Report

Amazon is planning a comeback in the smartphone market. The company is reportedly developing a new AI-driven mobile hub. This device aims to integrate with Alexa and enhance Amazon services. It could offer a conventional smartphone or a simpler 'dumbphone'. This move signals Amazon's increased focus on artificial intelligence in consumer devices. Amazon is reportedly planning to enter the smartphone space -- again -- going against rival tech giants like Apple, Google, and Samsung among others. According to Reuters, the company is working on a new smartphone internally, reviving its hardware ambitions more than a decade after the failure of its Fire Phone. Also Read: Jeff Bezos aims to raise $100 billion to buy, revamp manufacturing firms with AI: Report The project, codenamed "Transformer", is being developed within Amazon's devices and services unit and is still at an early stage, the report said. Details such as pricing, launch timeline and financial commitment remain unclear, and sources cautioned the effort could be scrapped if strategy shifts. Reuters noted that the device is being positioned as a personalised, AI-driven mobile hub "that can sync with home voice assistant Alexa and serve as a conduit to Amazon customers throughout the day". It is expected to make it easier for users to shop on Amazon, stream Prime Video, listen to Amazon Music and access partner services like food delivery throughout the day. A key focus, according to the report, is embedding artificial intelligence into the device, potentially reducing reliance on traditional app stores by enabling more direct, voice- or AI-led interactions. "Alexa would likely be a core feature but not necessarily the primary operating system of the phone," Reuters added citing sources. The move is part of Amazon's broader push to strengthen its AI play in consumer services, an area where rivals such as Apple, Google and Meta Platforms are already advancing with AI-powered devices. OpenAI is also working on hardware prototypes with former Apple designer Jony Ive. Amazon's earlier attempt at smartphones -- the Fire Phone launched in 2014 under founder Jeff Bezos -- was discontinued within 14 months after weak demand, forcing the company to cut prices sharply and take a $170 million hit on unsold inventory. Also Read: Samsung's new plan lets users get Galaxy S26 Ultra at 50% price upfront: Here's how The new effort is being led by a team called ZeroOne, headed by former Microsoft executive J Allard, and falls under the devices unit overseen by Panos Panay, Reuters said. The team has been tasked with building "breakthrough" hardware. Sources told Reuters that Amazon is exploring both a conventional smartphone and a pared-down "dumbphone" with limited features, potentially targeting users looking to cut screen time. One reference point for the device is the minimalist Light Phone. The potential launch also comes amid a weakening smartphone market, with global shipments expected to fall 13% in 2026 due to rising component costs, according to International Data Corporation. The country's most definitive MSME stage returns on March 24 in New Delhi. Register now for the ET MSME Awards 2025 (You can now subscribe to our Economic Times WhatsApp channel)

Amazon Eyes Smartphone Comeback -- 'Transformer' Project Reportedly Targets AI-Driven Future - Amazon.com (NASDAQ:AMZN)

Amazon.com Inc (NASDAQ:AMZN) is dialing up a second attempt at the smartphone market. More than a decade after the Fire Phone was scrapped, the e-commerce giant is developing a new device known internally as "Transformer." The project lives within Amazon's devices and services unit. The initiative aims to fulfill founder Jeff Bezos' vision of a ubiquitous, voice-driven "Star Trek" computer, reported Reuters, citing sources. AI Integration Over App Stores The "Transformer" project reportedly prioritizes artificial intelligence. Sources told Reuters that AI capabilities could eliminate the need for traditional app stores. Alexa remains a core feature, but it may not serve as the primary operating system. The device is envisioned as a mobile personalization device. It seeks to streamline access to Prime Video, Prime Music and Grubhub. Amazon did not immediately respond to Benzinga's request for comment. The 'ZeroOne' Breakthrough Mandate According to Reuters, a year-old group called ZeroOne leads the development. Former Microsoft Corp (NASDAQ:MSFT) executive J Allard heads the unit. Reuters sources indicate Amazon is exploring both traditional smartphones and "dumbphones." The latter would mirror the minimalist Light Phone to counter screen addiction. Fueling the AI Infrastructure AMZN Price Action: Amazon.com shares were down 0.60% at $207.50 during premarket trading on Friday, according to Benzinga Pro data. Image via Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Amazon Drafts AI Smartphone Strategy to Support Digital Services | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Known internally as "Transformer," the phone will offer personalized features that will enhance the Amazon shopping experience and services such as Prime Video and Amazon Music, according to the report. Amazon's financial commitment and timeline for the project are not known, and the smartphone effort could be scrapped, the report said. Reached by PYMNTS, Amazon declined to comment on the report. The company introduced its first smartphone, the Fire Phone, in 2014. About three months later, Amazon had cut the price of a $199 model of the phone to 99 cents due to sluggish sales, PYMNTS reported. The Fire Phone was discontinued after a little over a year. PYMNTS reported in 2023 that the Fire Phone lacked apps that people liked and wanted to use and that it was unable to get consumers to ditch their Apple and Android devices. Amazon unveiled a revamped version of its voice assistant called Alexa+ in February 2025, saying that it is infused with generative AI to be more capable, conversational and agentic than the previous version. The development of Alexa+ was plagued by delays, reportedly due to it hallucinating or giving wrong information on test questions. Its unveiling came about a year and a half after Amazon first announced it was going to infuse AI into Alexa. PYMNTS reported at the time that Amazon's upgrade of Alexa aligned closely with trends identified in the 2023 PYMNTS Intelligence report "How Consumers Want to Live in the Voice Economy," which predicted voice technology's potential to transform consumers' daily tasks. It was reported in March 2025 that after launching Alexa+, Amazon was preparing to release a "constellation" of AI-powered devices. "You can imagine ... a constellation of devices that has to come together to make it a better experience," Panos Paney, head of Amazon's devices and services business, told CNN in February 2025. In September 2025, Amazon unveiled the next generation of several of its devices, including Echo, Fire TVand Ring, that incorporate the company's AI assistant. The PYMNTS Intelligence report "AI Becomes a Daily Habit: The Consumer Shift From Trying Tools to Living With Them" found that 54% of U.S. adults now use AI for personal tasks and that the average user relies on two or three different AI tools.

Amazon plans smartphone comeback more than a decade after Fire Phone flop

In 2014, Amazon introduced its first smartphone, hoping to take on Apple and Samsung. Instead, the Fire Phone - overseen directly by founder Jeff Bezos - was scrapped in barely over a year, one of Amazon's highest-profile flops. Now, Amazon is dialing up a new phone. 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." Bezos had envisioned a smartphone that had shopping at its core and could take on Apple by offering shipping convenience and discounts through the Prime membership. Along the way, Amazon could gain a wealth of new data about users only available through mobile phones combined with purchase history and content preferences. Amazon's effort to develop a new smartphone has not been previously reported. Reuters could not determine some details, such as the anticipated price of the phone, the revenue Amazon hopes to generate, or the financial commitment Amazon has made to the project. The timeline for Amazon's Transformer project is also unclear, and the people cautioned it could be scrapped if the strategy shifts or due to financial concerns. 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, the people said. 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. Indeed, the short history of AI-embedded hardware is full of failed entrants, including the Humane AI pin and Rabbit R1 assistant which both sought to make generative AI available without the need to log in to computers or mobile phones. Following poor critical receptions, the gadgets were discontinued. That has not deterred others from pursuing AI-native devices that do away with the app-driven visual language of smartphones. OpenAI is working with former Apple design chief Jony Ive on several hardware prototypes, while Apple, Google and Meta are developing new AI-embedded glasses and other devices, such as watches and headphones. While Amazon's AWS is dominant in providing global cloud computing infrastructure, the company has sought to overcome a reputation for being flat-footed in offering AI applications as rivals have sped ahead. Alexa, which underwent a multi-year AI-led revamp before its new launch in 2025, is seen internally as critical to Amazon's future in consumer-facing services. The phone, the people said, is another attempt by Amazon to accelerate customers' AI usage either on the device or through Alexa. 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 US$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, said 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 per cent 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 per cent, according to International Data Corporation, as surging memory chip prices drive up device costs. 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.

Amazon may bring its own smartphone and this time with AI

Strong competition from Apple and Samsung may make the comeback difficult. Amazon is once again preparing to re-enter the smartphone market, according to recent reports. The company is said to be developing a new device under the codename Transformer. This will not be its first attempt. Amazon had attempted to launch a phone back in 2014, but the phone failed due to the price factor and the number of applications available. Now, the company wants to release a phone that you can control using your voice. Over the past ten years, Amazon has moved its attention away from mobile phones and focused more on services and smart home devices. However, the company is now looking to re-enter the global smartphone market with proper planning. According to reports, the new smartphone is expected to come with built-in Alexa support at its core. The idea is to create a device that relies more on voice commands than traditional app-based navigation. Users may be able to shop, stream content, and manage daily tasks using simple voice interactions. The phone could also connect smoothly with Amazon services like Prime Video, Amazon Music, and Kindle. Also read: Applied for Mudra loan recently? It could be fake: Here is how to spot them The project is being led by a team called ZeroOne within Amazon's devices division. This group is known for experimenting with new ideas. It is headed by J Allard, a former Microsoft executive. The team is said to be exploring two types of devices. One is a regular smartphone, while the other could be a simpler phone designed to reduce screen usage. Artificial intelligence is expected to be a significant factor in how the device operates. This is because, instead of relying on app stores, the phone will be able to provide direct access to these applications. This will, therefore, help Amazon create a distinct identity in a market that is already saturated. Also read: Vivo X300s India launch timeline, specifications, price and all other leaks floating over the internet Amazon tried entering the smartphone market before with the Fire Phone, but it failed. One main reason was that it didn't support popular apps like Google's services, so not many people wanted to buy it. In the end, Amazon had to stop selling the phone and lost a lot of money. However, the timing may not be ideal for Amazon to launch its new device, as the smartphone market is growing slowly, and strong competitors like Apple and Samsung are still dominating the industry.