Amazon Developing AI-Centric Smartphone Codenamed Transformer
Amazon's Devices and Services unit is building an AI-driven smartphone, codenamed Transformer, that would integrate Alexa and shopping features and could reduce reliance on traditional app stores.
Fox BusinessAmazon developing new AI-driven smartphone years after Fire Phone flop: report
CNETAmazon Wants to Make a Phone Again? Its First One Was a Fast Fail
WiredThere Aren’t a Lot of Reasons to Get Excited About a New Amazon Smartphone
New York PostAmazon plans smartphone comeback more than a decade after Fire Phone flop
Overview
Four people familiar with the matter said Amazon's Devices and Services unit is developing a smartphone codenamed Transformer with AI features and Alexa integration.
Amazon introduced the Fire Phone in 2014 and canceled it after 14 months, taking a $170 million charge for unsold inventory.
A company spokesperson declined to comment, and the project is said to be developed by a ZeroOne team led by J Allard.
Apple and Samsung together commanded about 40% of global smartphone sales last year, and Amazon was ranked second to last in privacy in the 2025 Ranking Digital Rights Index.
Reports said the timeline is unclear and the project could be scrapped, with no confirmed price, investment figures, or launch date; Amazon has invested $50 billion into OpenAI and projected $200 billion in capital expenditures for 2026.
Analysis
Center-leaning sources report this story neutrally, using cautious, fact-focused phrasing and explicit caveats. They note anonymous sourcing ("four people familiar with the matter"), unknowns (price, investment, OS details), and rely on reported intentions (shopping integration, Alexa possibility) without loaded descriptors or selective emphasis, which limits editorial framing.
FAQ
Amazon introduced the Fire Phone in 2014, but it was discontinued within 14 months due to weak consumer demand[2]. The company was forced to cut prices sharply and took a $170 million charge on unsold inventory[2]. This failure occurred despite being launched under founder Jeff Bezos' leadership[2].
The Transformer is designed to prioritize artificial intelligence and reduce dependence on traditional app stores through AI-led interactions[4]. Unlike conventional smartphones, it will function as a personalized mobile device that continuously connects users to Amazon services, with Alexa playing a central role but not necessarily serving as the primary operating system[2][4]. Amazon is also exploring a simplified 'dumbphone' variant with limited features, similar to the minimalist Light Phone, potentially targeting users seeking to reduce screen time[2].
The Transformer project is being led by a team called ZeroOne within Amazon's devices and services unit[2]. ZeroOne is headed by J Allard, a former Microsoft executive[2]. The team has been tasked with building 'breakthrough' hardware and operates under Panos Panay, who oversees the broader devices unit[2].
Apple and Samsung dominate the smartphone market, commanding approximately 40% of global smartphone sales[2]. Amazon must compete against these market heavyweights while overcoming the stigma of the Fire Phone's failure. Additionally, the smartphone market itself is weakening, with global shipments expected to fall 13% in 2026 due to rising component costs[2].
Details such as pricing, launch timeline, and financial commitment remain unclear[2]. Sources cautioned that the effort could be scrapped if Amazon's strategy shifts or due to financial concerns[2]. The project is currently still at an early stage of development with no confirmed launch date[2].