Amazon is reportedly developing a new smartphone designed around artificial intelligence, with Alexa as its core interface. The project, internally codenamed Transformer, seeks to replace conventional app stores with AI-driven interactions, drawing inspiration from minimalist devices like the Light Phone.
This move marks Amazon’s second serious attempt at a smartphone, following the failure of the Fire Phone over a decade ago. That device was discontinued after just one year amid poor sales and limited ecosystem support.
Despite investing over $25 billion in Alexa-enabled hardware over four years, Amazon’s devices division has yet to generate meaningful revenue. Analysts question whether a low-priced phone can overcome entrenched competition from Apple and Samsung - both of whom control dominant ecosystems, hardware innovation, and consumer loyalty.
The success of Transformer hinges on Amazon’s ability to make AI not just a feature, but the entire user experience.