en.Wedoany.com Report on Mar 21st, Amazon is developing a new smartphone codenamed "Transformer," designed to deeply integrate the Alexa voice assistant and artificial intelligence technology. This project is being advanced by the ZeroOne group within Amazon's Devices division, which was established about a year ago and is led by former Microsoft executive J Allard. During his time at Microsoft, Allard was involved in the development of the Zune music player and the Xbox gaming console, bringing extensive experience in consumer electronics R&D.
The core focus of this phone is to enhance Alexa and AI functionalities, potentially reducing reliance on traditional app stores. Meanwhile, features like shopping on Amazon.com and watching Prime Video are expected to play a significant role in the product experience. However, information suggests that Alexa may not serve as the phone's primary operating system, indicating that Amazon might be exploring a path of deep integration with existing mobile operating systems.
Amazon declined to comment on this matter. A spokesperson told Fierce: "We don't typically comment on rumors or speculation." At the same time, the project could be canceled at any time if the company's strategy shifts or financial issues arise.
Looking back, Amazon launched the Fire phone in July 2014 as an exclusive product for AT&T. The product was discontinued about a year after its release due to poor market reception. The initial price of over $600 and its unique features—such as four cameras for tracking head movements—are considered the main reasons for its market failure. With this renewed entry into the smartphone market, Amazon has clearly learned from its past mistakes, choosing AI and Alexa as the core breakthrough points.
Against the backdrop of overall challenges in the current phone market, Counterpoint Research predicts a 12.4% year-on-year decline in the phone market for 2026, described as "the most severe annual contraction ever," primarily due to upstream memory chip shortages. This market environment adds extra pressure for any new entrant.
As Amazon develops its new AI phone, the industry is closely watching to see if it can bring genuine innovation and breakthroughs to the smartphone market. Meanwhile, Elon Musk stated on X that SpaceX is not developing a phone, but "it's not impossible at some point," adding more imagination to the future development of phone technology.
