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Amazon plans smartphone comeback more than a decade after Fire Phone flop

Amazon's Transformer phone aims to boost Alexa AI use and integrate Prime services, with 15% of global handsets being minimalist types like dumbphones, sources said.

  • Reuters reports Amazon is developing a new smartphone codenamed 'Transformer', built by ZeroOne within its Devices and Services division and led by J Allard, designed around Alexa integration.
  • The effort dates back to Jeff Bezos's long-held vision for a voice-first shopping device, while Amazon first entered smartphones in 2014 with the Fire Phone, scrapped after about a year due to poor sales.
  • Design work draws inspiration from the Light Phone while testing voice-first interactions instead of app-centric workflows, and engineers are exploring Alexa-driven AI that could reduce reliance on traditional app stores.
  • Amazon’s devices division, overseen by Panos Panay, has battled unprofitability and the phone has no confirmed release plans or carrier partners, facing tough competition from Apple and Samsung, which held 40% of global sales last year.
  • Heavier AI spending and a shrinking handset market—expected to see a 15% share of sales in 2025—could influence Amazon’s smartphone strategy, amid a $50 billion OpenAI investment and $200 billion capex planned for 2026.
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A return to the smartphone market that knows about déjà-vu and gambling: Amazon's new project focuses on integration with Alexa and on the ecosystem of home, but between automatic shopping, invasive advertising and assistants who always misunderstand, the risk of another clamorous flop is far from remote

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Reuters broke the news in United Kingdom on Friday, March 20, 2026.
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