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Amazon is reportedly developing a new smartphone more than a decade after scrapping its Fire Phone, with plans for an AI-powered device integrated with Alexa and its broader service ecosystem.
The tech giant’s new project is called ‘Transformer’ and is being developed within the company’s devices and services division, according to Reuters, citing four people familiar with the project.
The outlet said the new phone could be a mobile personalization device that can sync with the voice assistant platform Alexa.
Details about the expected price of the phone, along with Amazon’s financial commitment to the project and revenue projections, were not immediately clear.
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The Amazon logo is shown on the facade of Amazon Germany’s headquarters in Parkstadt Schwabing, Munich, Bavaria, January 27, 2026. (Matthias Balk/photo alliance via Getty Images / Getty Images)
Sources told Reuters that the project’s timeline is also unclear, noting that it could still be demolished.
An Amazon spokesperson declined to comment to Reuters. Fox Business has reached out to Amazon for comment.
Amazon introduced the Fire Phone in 2014 and packaged the product with a free year of Amazon Prime.
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Amazon is reportedly developing a new AI-powered smartphone integrated with Alexa, marking a potential return to the highly competitive mobile market. (fizkes/iStock/Getty Images Plus/Getty Images)
Although the smartphone launched with a lot of hype, it received mixed reviews with complaints ranging from a mediocre operating system to its high price, which was initially $649.
The company canceled the smartphone after just 14 months and took a $170 million charge for unsold inventory, Reuters reported.
Apple and Samsung together controlled about 40% of global smartphone sales last year, according to Counterpoint Research, a market that Amazon is now said to be re-entering with its reported new device.
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The logo for Amazon’s Alexa+ is displayed on a screen during an Amazon Devices launch event in New York City on February 26, 2025. (Reuters/Brendan McDermid/Reuters)
According to Reuters, the new smartphone would include personalization features that would allow users to easily access Amazon.com, Prime Video and food delivery apps like Grubhub.
The project aims to integrate artificial intelligence into the device, which could eliminate the need for traditional app stores, the outlet added.
Reuters contributed to this report.
