Amazon Smartphone Comeback: AI & Shopping Focus After Fire Phone Flop

Amazon is planning a return to the smartphone market, more than a decade after the unsuccessful launch of the Fire Phone, with a new device codenamed “Transformer,” according to reports from Reuters and other outlets. The project, currently underway within Amazon’s ZeroOne group, signals a renewed ambition by the company to compete in the mobile space, this time with a strong emphasis on artificial intelligence.

The initiative dates back to the vision of Amazon founder Jeff Bezos, who sought to create a ubiquitous, voice-driven computing assistant, reminiscent of the technology depicted in science fiction series like “Star Trek.” Bezos envisioned a smartphone deeply integrated with Amazon’s shopping services, offering convenience and discounts to Prime members. The current effort, however, is taking a different approach than the 3D-gimmick-laden Fire Phone of 2014.

“Transformer” is being led by J Allard, who previously held key roles at Microsoft on projects like Zune and Xbox. Allard’s team has explored both traditional smartphone designs and more minimalist “dumbphone” concepts, reportedly drawing inspiration from the $700 Light Phone, which features a black-and-white display and eschews a conventional app store. The focus on AI integration is a “key focus” of the project, with Amazon exploring the potential to utilize mini apps similar to those found in ChatGPT, potentially bypassing the need for a full-fledged app store.

Although the exact role of Alexa remains uncertain, the AI assistant is central to the new device’s concept. Sources indicate Alexa won’t “necessarily be the primary operating system of the phone,” but will be a core component of the user experience. The phone is envisioned as a device that can seamlessly sync with Amazon’s home voice assistant and serve as a conduit for Amazon customers throughout their day. Amazon also intends for the phone to facilitate easy shopping through Amazon and partners like Grubhub, and to stream content from Prime Video and Prime Music.

The original Fire Phone, launched in 2014 at $199, failed to gain traction and was discontinued after just a year. Amazon’s previous foray into the smartphone market was hampered by a lack of compelling app availability. The company’s revitalized hardware division is now attempting to address this challenge by exploring alternative app distribution models, potentially leveraging AI-powered mini apps.

Amazon declined to comment on the Reuters report when contacted by Ars Technica. The timeline for the release of “Transformer,” and its potential cost, remain unknown. Reuters’ sources cautioned that the project could still be cancelled due to financial considerations or a shift in Amazon’s strategic priorities.

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