Amazon needs to present one other shot to the gadget that’s broadly thought-about as the corporate’s ‘greatest flop’

Amazon is reportedly engaged on a brand new smartphone mission. According to a Reuters report, this new mission is internally known as “Transformer,” because it revisits its earlier try within the class following the Fire Phone’s discontinuation in 2015. The report cited individuals aware of the matter to say that the gadget is being developed inside the firm’s units and providers unit and is predicted to operate as a personalised cell hub, intently built-in with its voice assistant, Alexa.The effort expresses a renewed push tied to Amazon founder Jeff Bezos’ long-standing imaginative and prescient of a voice-driven computing ecosystem, just like ideas seen in science fiction resembling “Star Trek.” The proposed cellphone might concentrate on linking with residence units, enabling procuring options linked to Prime membership, and providing Amazon deeper entry to consumer knowledge by cell utilization patterns, the Reuters report claims.However, a number of particulars, together with pricing, anticipated income, and general funding, stay unclear. The mission’s timeline has additionally not been finalised, and sources indicated it might nonetheless be shelved relying on strategic or monetary issues, the Reuters report added.

What we learn about Amazon’s rumoured smartphone

According to Reuters sources, the brand new cellphone’s personalisation options are anticipated to simplify actions resembling procuring on Amazon.com, streaming Prime Video, listening to Prime Music, or ordering meals from companions like Grubhub. The Transformer mission can be targeted on embedding synthetic intelligence (AI) capabilities into the gadget. This method might cut back reliance on conventional app shops, which usually require customers to obtain and register for apps earlier than use. Alexa is predicted to play a central position, although it could not function the cellphone’s major working system, the report provides.According to individuals aware of the work, the Transformer cellphone remains to be in improvement. Amazon has explored each a typical smartphone and a extra restricted “dumbphone” design geared toward slicing display utilization. The firm has not but engaged wi-fi service companions for the gadget, the report notes.Meanwhile, Panos Panay, who leads Amazon’s units and providers unit, has been working to handle the division’s ongoing losses. This consists of plans for a brand new pill anticipated to run Android moderately than Fire OS, priced round $400.Amazon’s earlier smartphone effort in 2014 included options resembling a camera-based device that recognized merchandise and added them to customers’ Amazon.com carts. However, the Fire Phone’s Fire OS lacked broadly used apps out there on Android and iOS, and its multi-camera system for 3D visuals consumed important battery energy, typically resulting in overheating.The firm bundled the Fire Phone with a free 12 months of Amazon Prime, however gross sales remained restricted. The value was diminished from $649 to $159 earlier than the gadget was discontinued after 14 months, with Amazon taking a $170 million cost associated to unsold stock.Efforts to construct AI-focused {hardware} have skilled obstacles up to now. Devices such because the Humane AI Pin and Rabbit R1 assistant aimed to ship generative AI experiences with out requiring customers to log in to computer systems or smartphones, however had been later discontinued following low adoption.Other firms proceed to discover AI-native units that transfer away from app-based smartphone interfaces. OpenAI is working with former Apple design chief Jony Ive on {hardware} prototypes, whereas Apple, Google and Meta are growing AI-enabled merchandise resembling glasses, watches and headphones.On the opposite hand, Amazon Web Services has made efforts to dispel rumours that it delivers AI-driven apps extra slowly than rivals, although it stays a significant provider of cloud computing infrastructure. Moreover, Alexa, which underwent a multi-year AI-led redesign previous to its 2025 relaunch, is a vital part of Amazon’s client providers technique. The new cellphone is perceived as one more effort to spice up client interplay with AI, both by Alexa or instantly on the gadget.