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Amazon developing new AI-powered smartphone

More than a decade after the failure of its Fire Phone, Amazon is reportedly working on a new smartphone initiative, signaling a renewed push into the competitive mobile hardware market. The project, internally codenamed “Transformer,” is being developed within the company’s devices and services division and aims to integrate artificial intelligence deeply into everyday user experiences.

Launched in 2014 under the direction of Jeff Bezos, the Fire Phone struggled due to limited app support, high pricing, and design challenges, ultimately leading to its discontinuation within just over a year. Despite that setback, Amazon appears ready to re-enter the space with a more refined strategy centered on AI, personalization, and ecosystem integration.

Focus on AI and Personalisation

The new device is expected to function as a highly personalized companion, leveraging Amazon’s voice assistant Alexa to streamline activities such as shopping, content consumption, and daily tasks. The smartphone could potentially reduce reliance on traditional app stores by embedding AI-driven functionalities that allow users to interact more intuitively with services.

The initiative is being led by Amazon’s ZeroOne team, a group tasked with building breakthrough consumer devices. The project also draws inspiration from minimalist devices like the Light Phone, indicating that Amazon may explore both full-featured smartphones and simplified alternatives designed to reduce screen dependency.

Challenges in a Competitive Market

Amazon’s renewed ambitions come at a time when the global smartphone market is highly consolidated, with dominant players like Apple and Samsung holding a significant share. Industry analysts suggest that while Amazon has a strong ecosystem spanning e-commerce, cloud, and digital content, convincing users to switch from established platforms will be a major hurdle.

Additionally, the broader market is facing headwinds, with global smartphone shipments expected to decline amid rising component costs. Amazon’s previous experience highlights the importance of delivering a compelling value proposition—something analysts believe will be crucial if the company hopes to succeed this time.

While the timeline, pricing, and final design of the “Transformer” device remain unclear, the project underscores Amazon’s continued ambition to expand its footprint in consumer technology and deepen user engagement through AI-driven innovation.