Amazon is reportedly preparing a return to the smartphone market more than a decade after the company discontinued its original Fire Phone. According to people familiar with the project, Amazon is developing a new device internally under the code name “Transformer.”

The smartphone project is being developed within Amazon’s devices and services unit. Sources said the device could function as a mobile personalization hub that connects users to the company’s digital ecosystem throughout the day.

The proposed phone could integrate services such as Amazon shopping, Prime Video, Prime Music, and food delivery platforms like Grubhub. These features aim to make it easier for users to access Amazon services directly from the device.

However, the development project remains in an early stage. People familiar with the effort cautioned that the initiative could still be scrapped if Amazon changes its strategy or financial priorities.

🤖 AI and Alexa Expected to Play Central Role

Artificial intelligence is expected to play a major role in the new smartphone concept. The device would likely rely heavily on Amazon’s voice assistant Alexa to deliver personalized experiences and simplify everyday tasks.

Sources said the company is exploring ways to integrate AI features directly into the device’s interface. These capabilities could potentially reduce reliance on traditional mobile app stores and allow users to interact with services through voice or AI-driven commands.

The initiative reflects Amazon’s broader push to expand AI-powered consumer technology. The company has already been investing heavily in improving Alexa and other artificial intelligence tools used across its devices and services.

📉 Fire Phone Failure Still Shapes Strategy

Amazon previously attempted to enter the smartphone market with the Fire Phone, which launched in 2014. The device aimed to compete with leading smartphones from Apple and Samsung but struggled to gain traction with consumers.

The phone offered features such as camera-based product recognition, which allowed users to identify items and purchase them directly from Amazon. However, the device lacked many popular apps and relied on a proprietary operating system.

Sales remained weak despite price cuts. Amazon eventually discontinued the device after about 14 months and recorded a $170 million charge related to unsold inventory.

Because of that failure, analysts say the company will need to offer a compelling reason for consumers to switch from established smartphone platforms.

📊 Amazon Faces Strong Competition in Smartphones

The global smartphone market remains dominated by major technology companies. Apple and Samsung together account for about 40% of global smartphone sales, according to market research firm Counterpoint Research.

Amazon would therefore face intense competition if it launches a new device. In addition, smartphone shipments are expected to decline in 2026 due to rising component costs and weaker consumer demand.

Despite these challenges, the company continues exploring ways to expand its hardware ecosystem. Executives see the smartphone as another opportunity to connect users with Amazon’s services and artificial intelligence tools.

For now, the timeline, pricing, and final design of the new device remain uncertain.