Amazon is reportedly developing a new smartphone, codenamed "Transformer," marking its first attempt to re-enter the mobile market since the high-profile failure of the Fire Phone in 2014. The project is being led by the ZeroOne group within Amazon's devices and services unit, headed by former Microsoft executive J Allard, with Panos Panay, head of the devices division, also involved.
The initiative is exploring two distinct hardware paths: a full-featured smartphone and a minimalist "dumbphone" option. The latter is inspired by devices like the Light Phone and is aimed at users seeking to reduce screen time or as a secondary device for teenagers. The core concept for both variants is deep integration of artificial intelligence, potentially eliminating the need for a traditional app store. Instead, users would interact primarily through Alexa and AI-powered features built directly into the device.
"The phone is seen as a potential mobile personalization device that can sync with Alexa, make shopping easier, and act as a daily touchpoint between Amazon and its customers," according to sources familiar with the matter who spoke to Reuters. This aligns with founder Jeff Bezos's long-held vision of a voice-driven computing assistant.
The project faces significant market challenges. The smartphone sector is dominated by Apple and Samsung, which together held around 40% of global sales in 2025. Furthermore, global smartphone shipments are projected to fall 13% in 2026 due to rising component costs. Amazon's previous Fire Phone, launched in 2014 at $649, was a commercial disaster, resulting in a $170 million charge and being discontinued after just 14 months due to poor sales, a limited app ecosystem, and technical issues.
The timeline for the Transformer phone remains unclear, and sources caution the project could still be canceled if priorities shift. Amazon has not yet approached wireless carriers about the device and declined to comment on the reports.
