Amazon Reboots Smartphone Project After 12 Years: Internal Codename Transformer

Phoenix Technology News, March 20 — According to Reuters, after more than a decade since the failure of the first-generation smartphone Fire Phone, Amazon is planning to re-enter the smartphone hardware market. A new device project codenamed “Transformer” is currently under development, focusing on AI integration and mobile personalization, aiming to reshape users’ digital lives and break traditional app ecosystem barriers by deeply integrating voice assistant Alexa.

The project is led by the ZeroOne innovation team, established by Amazon’s device division just a year ago, with the core mission of creating groundbreaking electronic devices. Sources familiar with the matter say the project is headed by former Microsoft executive J Allard. The main focus of the new phone is on underlying AI capabilities, attempting to eliminate the cumbersome download and registration processes of traditional app stores, allowing users to more conveniently access Amazon shopping, Prime video and music, Grubhub, and other ecosystem services through natural interactions. While Alexa will be a core feature throughout, insiders indicate it may not be the only primary operating system for the device.

The R&D team is currently evaluating two product routes in parallel: one is a traditional smartphone, and the other is a minimalist feature phone inspired by Light Phone. The latter aims to reduce screen addiction issues and could serve as a second backup device for Apple or Samsung users. Amazon previously launched its first phone, Fire Phone, in 2014, personally overseen by founder Jeff Bezos. However, due to a lack of mainstream apps and high power consumption from 3D features, the product was discontinued after 14 months, resulting in a $170 million inventory write-down.

Facing a stable market share of about 40% held by Apple and Samsung globally, and with IDC predicting a 13% decline in global smartphone shipments by 2026, Amazon’s hardware revival faces significant market hurdles. Currently, the Transformer project’s pricing, funding, and specific release schedule are yet to be finalized. If the company’s strategic direction shifts or financial pressures mount, the project could be shelved at any time.

(Edited by: Guo Jiandong)

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