Amazon is working on another phone.
That’s the jaw-dropper from Reuters this morning, reporting that the company is developing a new smartphone codenamed “Transformer” within its devices and services unit.
The project is reportedly led by an internal team known as ZeroOne, a year-old group whose mandate is to create “breakthrough” gadgets, headed by J Allard, a former Microsoft executive known for his work on Xbox and Zune.
GeekWire first reported on Allard joining Amazon back in October 2024, working under another Microsoft veteran, Panos Panay, who leads Amazon’s broader devices and services organization.
The phone is envisioned as an AI-driven mobile personalization device that syncs with Alexa and serves as a persistent connection to Amazon’s ecosystem, including shopping, Prime Video, Prime Music, and food delivery through partners like Grubhub, according to the report.
A key focus is integrating AI capabilities, potentially sidestepping or bypassing standard app marketplaces, according to the sources cited by Reuters.
Of course, it’s not the first time Amazon has tried to crack the smartphone market. The company launched the Fire Phone in 2014 under the direct oversight of Jeff Bezos, packaging it with features like aa 3D display system and vision technology for identifying objects.
It flopped. The proprietary Fire OS lacked popular apps, the multi-camera 3D feature drained the battery and caused overheating, and consumers weren’t interested. Amazon slashed the price from $649 to $159, killed the phone after 14 months, and took a $170 million writedown.
This time, Amazon appears to be taking a different approach. According to Reuters, the company has explored both a conventional smartphone and a stripped-down device with limited features, aimed at countering screen addiction.
Alexa would be central to the experience but wouldn’t necessarily serve as the phone’s main operating system, Reuters reported. The company hasn’t started talks with wireless carriers yet, and the project’s timeline and budget remain undefined, according to the report.
Amazon declined to comment in response to GeekWire’s inquiry.
Sources told Reuters the project could still be canceled.
