Amazon is developing a new smartphone, nearly ten years after its first attempt, the Fire Phone, failed to capture consumer attention. The original device, launched in 2014 at $649, featured a 3D “Dynamic Perspective” display and a camera-based shopping tool called Firefly. Limited app availability on Fire OS contributed to weak adoption, leading Amazon to reduce the price to $159, discontinue the product after 14 months, and record a $170 million writedown for unsold inventory.
The new smartphone, internally named “Transformer”, is being developed by Amazon’s devices division under ZeroOne, a team created last year to design breakthrough hardware. ZeroOne is led by former Microsoft executive J Allard, known for his work on Zune and Xbox, while Panos Panay, head of Amazon’s devices and services unit, continues to steer the company toward profitable hardware projects, including upcoming Android-based tablets.
Brandspur Banking News Desk reports that the Transformer could act as a personalised device tightly integrated with Amazon’s ecosystem, including Alexa, Prime Video, Prime Music, and food delivery services. The phone may launch as a full-featured smartphone or a simpler device with limited functionality to reduce screen time.
The project faces a challenging market environment. Global smartphone shipments are expected to decline in 2026, with rising memory chip costs affecting production. Apple and Samsung dominate the market, controlling roughly 40% of global sales, leaving limited room for new entrants. Additionally, AI-native devices such as the Humane AI Pin and Rabbit R1 have struggled to gain adoption despite early hype.
Analyst Colin Sebastian of R.W. Baird noted, “Amazon will have to give consumers a compelling reason to switch phones, as people remain attached to existing app stores.” Pricing and release dates for the Transformer have not been announced, and Amazon declined to comment.
The Transformer represents Amazon’s latest attempt to merge consumer hardware with its growing digital services, signalling renewed ambition in the competitive smartphone and AI-driven device landscape.
