SAN FRANCISCO – Amazon is preparing a return to the smartphone market, more than a decade after the ill-fated launch of the Fire Phone in 2014. The new device, internally codenamed “Transformer,” is being developed by the company’s devices and services unit, according to four people familiar with the matter.
The effort represents a renewed push by Amazon founder Jeff Bezos to realize his long-held vision of a voice-driven computing assistant, similar to the technology depicted in the science fiction series “Star Trek.” Bezos had initially envisioned a smartphone deeply integrated with Amazon’s shopping platform, offering Prime members convenient shipping and discounts, while simultaneously gathering valuable user data.
Amazon’s first foray into the smartphone arena ended quickly. The Fire Phone, launched in July 2014, featured unique gesture-based controls and a camera-based shopping tool. But, it lacked many popular apps available on competing platforms and suffered from battery life issues. Despite a price reduction from $649 to $159, Amazon discontinued the device after just 14 months, incurring a $170 million loss, according to Reuters reporting.
The “Transformer” project aims to leverage advancements in artificial intelligence (AI) to create a more compelling mobile experience. The new phone could potentially eliminate the need for traditional app stores, relying instead on AI-powered voice commands and personalized recommendations, sources said. Alexa, Amazon’s voice assistant, is expected to be a central feature, though not necessarily the primary operating system.
The project is led by ZeroOne, a year-old group within Amazon’s devices unit tasked with developing “breakthrough” gadgets and headed by J Allard, a former Microsoft executive known for his work on the Zune music player and Xbox gaming console. Panos Panay, head of Amazon’s devices and services unit, is focused on reversing years of unprofitability within the division, with plans to release an Android-based tablet priced around $400, Reuters reported.
Amazon has explored various form factors for the new device, including a traditional smartphone and a more minimalist “dumbphone” with limited features, potentially appealing to consumers seeking to reduce screen time. The company has not yet engaged with wireless carriers regarding the device, sources indicated.
The Light Phone, a minimalist smartphone priced at $700, has served as an inspiration for the project, according to two individuals familiar with the development. Feature phones, including models like the Light Phone, accounted for 15 percent of global handset sales in 2025, according to Counterpoint Research.
Analysts caution that Amazon faces significant challenges in disrupting the smartphone market, currently dominated by Apple and Samsung, which together controlled approximately 40 percent of global sales in 2025. Global smartphone shipments are projected to decline by 13 percent in 2026, driven by rising memory chip prices, according to IDC.
“Amazon will have to give consumers a compelling reason to switch phones and people are pretty attached to the existing app stores,” said Colin Sebastian, an analyst at R.W. Baird. Francisco Jeronimo, vice president of data and analytics at International Data Corporation, noted that “the window of opportunity is tiny,” as other major players are likewise investing heavily in AI-powered mobile devices.
Amazon declined to comment on the project. The timeline for the “Transformer” project remains uncertain, and the device could be canceled due to financial concerns or a shift in company strategy.
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