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Amazon eyes smartphone comeback with AI-powered device

Amazon is reportedly working on a new smartphone project, more than a decade after the failure of its Fire Phone, in a renewed push to expand its presence in consumer hardware and artificial intelligence-driven services.

The initiative, internally codenamed “Transformer,” is being developed within the company’s devices and services division, according to people familiar with the matter. The proposed device is expected to function as a personalised mobile hub, deeply integrated with Alexa, enabling users to interact with Amazon’s ecosystem throughout the day.

A Second Shot at Smartphones

Amazon first entered the smartphone market in 2014 with the Fire Phone, an ambitious attempt to rival devices from Apple and Samsung. However, the device struggled due to limited app support, high pricing, and hardware challenges, leading to its discontinuation within just over a year.

The new effort reflects a broader ambition long associated with founder Jeff Bezos — the creation of a seamless, voice-driven computing experience. The upcoming device is expected to prioritise AI capabilities, potentially reducing reliance on traditional app stores by allowing users to complete tasks through conversational interfaces.

Focus on AI and Ecosystem Integration

Sources indicate that the Transformer project aims to make services such as shopping on Amazon, streaming via Prime Video, and accessing music or food delivery more intuitive through AI-powered personalisation. The device could also act as a constant gateway to Amazon’s broader ecosystem, combining user data, preferences, and behaviour to enhance engagement.

While details such as pricing, launch timeline, and overall investment remain unclear, the project is still in development and could be shelved depending on strategic or financial considerations. Amazon has not officially commented on the initiative.

The effort comes at a time when major technology companies are increasingly investing in AI-native hardware. However, industry analysts note that breaking into the smartphone market remains challenging, given strong consumer loyalty and the dominance of established platforms.

If successful, Amazon’s renewed attempt could mark a significant shift toward AI-first mobile experiences. Yet, the company faces the dual challenge of differentiating its device while convincing users to move beyond entrenched app ecosystems.