Amazon is reportedly preparing their return to the smartphone market with a new device that would place Alexa and artificial intelligence at the heart of the experience. After the Fire Phone debacle, the company seems ready to try again with a very different approach, more closely aligned with the rise of generative AI and its gigantic ecosystem of services.
The first details have emerged through various leaks and a report from Reuterswhich point to an internal project still in its early stages and without final approval. Even so, the available information allows us to paint a fairly clear picture: Amazon wants a mobile phone that will function as a key component of its Alexa+ platform, rather than just another phone in an already saturated market.
An internal project codenamed Transformer
Sources close to the company say that Amazon is working on a new phone under the internal codename “Transformer”, managed by the devices and services division. This is the same unit that is driving the new generation of Echo speakers, smart displays and other devices based on the revamped version of Alexa with generative AI.
Internally, this future mobile device is described as a “mobile personalization device”...more than just a simple Android phone with pre-installed Amazon apps, and geared towards managing connected devices, including smart glassesThe idea would be for the user to constantly interact with Alexa+, which would act as an intermediary for purchases, content playback, service bookings, or management of connected devices.
According to the leaks, Transformers is still in a delicate stage of developmentEven within Amazon, there is no complete certainty that it will reach the market: industry conditions, hardware costs, and the company's own strategy could cause the project to be scaled back, delayed, or even canceled before it is released.
This cautious approach is not accidental. The precedent set by the Fire Phone, which forced assume losses in the millions The number of unsold units weighs heavily in decision-making. Therefore, although development is progressing, sources insist that the project is not guaranteed and could be halted if the numbers don't add up.
Alexa+ and generative AI as the core of the new mobile
The big difference compared to the Fire Phone is that Amazon now has Alexa+ as an assistant enhanced by generative AIThis new version, more conversational and capable of chaining tasks, is presented as the central piece of the future smartphone, which would act as its main support outside the home.
Amazon describes the architecture of Alexa+ as a system that orchestrates language models, APIs, services, and devicesTranslated into everyday use, this means that the user could ask the phone to organize a dinner, book transportation, do the weekly shopping, and coordinate deliveries, all through voice or natural language requests, without having to jump between applications.
With this approach, Amazon's mobile phone would seek go beyond the typical voice assistant to which alarms or shopping lists are requested. The intention is for Alexa+ to function as an intelligent agent that remembers habits, preferences, and context, adapting its behavior with use and turning the smartphone into a true personal automation hub.
This approach aligns with the company's vision: It's not so much about launching "another mobile phone"but rather to reinforce the role of Alexa+ in daily life. A dedicated smartphone would allow Amazon to reduce its reliance on third-party platforms like standard Android or iOS, and provide a direct channel for its services, from the store to Prime Video, Prime Music, or even restaurant and delivery partnerships like Grubhub.
A phone designed as a gateway to the Amazon ecosystem
If the project goes ahead, the device would be deeply integrated with the entire Amazon ecosystemThe interface would be adapted so that shopping in the store, watching series on Prime Video, listening to music on Amazon Music, or using other company services would be more straightforward than on any other mobile phone.
In addition to its own services, the company is considering the option of add local partners in each country To expand the range of possible voice actions: from ordering food delivery to booking appointments or buying tickets, all managed by Alexa+ as an intermediary layer. In Europe, these kinds of local partnerships could be key to making the phone relevant beyond shopping and streaming.
The mobile phone also aspires to become Universal remote control for smart homeThe idea is that the user can control lights, thermostats, cameras, plugs and other Alexa-compatible devices from anywhere, using AI to create routines or react to situations in real time.
In the software arena, one of the biggest unknowns is which operating system Amazon will adopt. Two options are on the table: a modernized FireOS based on Android...as on their tablets, or a more conventional Android variant with its own custom interface. The decision will be key, especially regarding access to third-party applications and compatibility in Europe with commonly used services.
Two possible formats: full smartphone and basic phone
One of the most striking elements of the leaks is that Transformer would not be limited to a single device. Amazon is reportedly exploring both a full-fledged smartphone and a "basic phone", more minimalist, designed as a second mobile phone and with fewer distractions.
That second format is inspired by proposals such as Light phoneThese are terminals with very limited functions that aim to reduce usage time. In Amazon's case, the basic variant would serve as a "backdoor" to the ecosystem: an inexpensive device, without too many frills, but closely connected with Alexa and the company's services.
In the global market, phones with reduced capabilities still represent a significant portion of salesThis opens the possibility that Amazon might try to position this potential "smart dumbphone" as a complement to a flagship smartphone from another brand. It would be a way to gain market share without competing directly with the flagship devices from Apple, Samsung, or Xiaomi.
The more advanced model, on the other hand, would focus on offering an AI and services experience that is as complete as possibleHere, hardware could take a backseat as long as it meets the requirements for smoothly running AI models locally or in the cloud. The focus wouldn't be on boasting about a revolutionary camera or battery, but rather on practical features based on automation and personalization.
Lessons from the Fire Phone failure
To understand why Amazon is being so cautious with Transformers, we must remember the precedent of Fire PhoneLaunched in 2014, the company's first smartphone promised a 3D interface based on several front cameras and its own Android-derived operating system, FireOS, heavily focused on the Amazon store.
The problem is that It arrived expensive, with a limited app catalog and an unclear proposition.The 3D screen drained the battery without offering any real advantage, and the lack of many popular apps diminished its appeal compared to Android and iOS. Despite aggressive price cuts and promotions like free Prime months, the device barely gained traction.
The result was decisive: the Fire Phone was withdrawn from the market just over a year later, and Amazon had to assume estimated losses of around $170 million due to unsold inventory. It became one of the classic examples of how not to enter a sector dominated by giants.
That episode left a clear lesson within the company: Amazon's name alone is not enough to compete in the mobile marketAny new attempt needs more than just a catalog and a competitive price. That's why the focus now is much more on AI and a shift in how we use the phone, not just the device's "wrappings."
Who is behind the project and what room for maneuver is there?
The responsibility for Transformer lies with ZeroOne, an internal unit created by Amazon to imagine and develop “revolutionary” consumer products. Leading the project is J. Allard, an industry veteran who participated in the birth of the original Xbox and the Zune player during his time at Microsoft.
Above this division is Panos PanayKnown for leading the Surface line at Microsoft for years before joining Amazon, both have experience launching hardware from disadvantageous positions against well-established competitors, something that aligns with Amazon's situation in the smartphone market.
Since 2024, ZeroOne has been working on new device categoriesincluding next-generation smart speakers and tablets. The hypothetical mobile phone with Alexa+ would be part of this wave of products with which the company wants to reposition itself in consumer hardware, especially at a time when AI has become the main technological selling point.
Even so, the sources that have spoken about Transformers are clear: There is no guarantee that the phone will reach the storesDepending on how the market evolves, the costs of components (with special attention to memory and AI chips), and the Alexa+ roadmap itself, Amazon could choose to freeze the project or redirect it towards another type of device.
With all this context in mind, Amazon's potential return to the smartphone market appears to be a much more calculated move than the Fire Phone. The company is trying to capitalize on the momentum of generative AI, the strength of its ecosystem, and the desire to have its own presence in users' pockets, but without losing sight of the fact that the sector is dominated by a few manufacturers and that past mistakes are still very much present. If Transformer does see the light of day, it will be because Amazon has found a way to transform the phone into more than just a device with its logo: into a seamless extension of Alexa+ and all its services, also for users in Spain and the rest of Europe.
