Amazon working on new AI smartphone after Amazon Fire Phone failure

Amazon launched its first smartphone, the Amazon Fire Phone, in 2014. However, its production was discontinued within a year. Now, it has been reported that the company is working on a new phone.

Sat, 21 Mar 2026 12:22 AM (IST)
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Amazon working on new AI smartphone after Amazon Fire Phone failure
Amazon working on new AI smartphone after Amazon Fire Phone failure

The company had released its first smartphone, the Amazon Fire Phone, back in 2014, but production was halted after just a year. However, reports have now come out indicating the company is working on producing a new smartphone. This new smartphone may help users stay connected through the company’s voice assistant, Alexa. According to reports, it will have built-in artificial intelligence (AI) capabilities, with Alexa likely playing a key role. The project is reportedly being led by a year-old group within Amazon's device unit, called ZeroOne. This new handset is inspired by the minimalist Light Phone.

Citing four unnamed sources, Reuters reports that Amazon is working on a new smartphone, which is being developed within the company as part of a project called "Transformer." The project is being led by the Devices and Services unit and is envisioned as a personalized mobile device that can sync with Alexa. This voice assistant will serve as a constant touchpoint between Amazon and its users throughout the day.

According to reports, the Transformer project is part of a long-held vision by Jeff Bezos. Under this vision, he wanted to create an "ubiquitous, voice-operated computing assistant" similar to the voice-controlled computers featured in the science fiction series Star Trek. Bezos reportedly envisioned a smartphone focused primarily on shopping; it could compete with Apple by offering fast shipping and discounts through Amazon Prime membership.

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There's no clear information yet about the Transformer project's pricing or launch timeline. The report states that if the company's strategy changes, or for financial reasons, the project could be shelved.

The company’s project named Transformer is now managed by a new team named ZeroOne, which operates under the devices division at Amazon. This team consists of former Microsoft executives who have previously developed products such as the Zune and Xbox gaming console. The Light Phone feature phone seems to have been the inspiration for the new phone.

This alleged smartphone from Amazon will place a special emphasis on personalization. It will allow users to easily shop on Amazon and stream content from Prime Video. Users will also be able to instantly access Prime Music and order food through Grubhub. Several advanced AI features may be integrated into the project, eliminating the need for traditional app stores. Because, apps from traditional app stores require downloading and registering for them.

Voice assistant Alexa is expected to play a key role in this device. The Amazon Fire Phone was launched in June 2014 at a price of $649 (approximately Rs. 60,000). After facing difficulties in gaining market demand, Amazon discontinued sales of this model in September 2015.

Muskan Kumawat Journalist & Writer