Amazon develops AI-centric smartphone, reviving hardware ambitions
Amazon is building a smartphone codenamed Transformer, according to Reuters, marking the company's return to mobile devices more than a decade after discontinuing the Fire Phone. The device would center on Amazon's services and AI capabilities rather than a traditional app store.
Four people familiar with the project told Reuters that AI integration is a "key focus" of the effort. Amazon wants the phone to drive usage of its AI products, potentially using artificial intelligence in place of conventional app stores-a model inspired by the Light Phone, the sources said.
The phone would prioritize shopping through Amazon and partners like Grubhub, plus streaming from Prime Video and Prime Music. Alexa could serve as the operating system, though Reuters' sources said that remains uncertain.
Amazon declined to comment when contacted about the project.
Uncertain timeline and strategy
Reuters could not confirm the phone's price, development costs, or revenue expectations. The project could be cancelled due to financial constraints or strategic shifts, the sources noted.
Amazon's last smartphone, the Fire Phone, launched in 2015 and was discontinued within a year due to poor sales. The company's devices division has struggled financially for years, with Alexa-based hardware failing to generate meaningful revenue.
Entering the smartphone market would put Amazon in direct competition with Apple and Samsung, which control the market through established app ecosystems, hardware expertise, and customer loyalty.
The AI angle
The project reflects Amazon's broader push into generative AI. The company has been developing Alexa+, a subscription-based generative AI assistant that would likely play a central role in the phone's functionality, though Reuters' sources did not explicitly confirm this.
For IT and development professionals, this represents a different approach to mobile OS design-replacing app discovery with AI-driven recommendations and interactions. The strategy depends on whether users will accept AI mediation as a substitute for traditional app navigation.
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