Amazon Phone Returns: New Alexa Smartphone Coming

The Amazon phone is making a major comeback to the smartphone market. The e-commerce giant is reportedly developing a new mobile device that would sync with its existing ecosystem of software and hardware, including Alexa-based smart hubs and its Prime Video TV service. This marks Amazon second attempt at conquering the smartphone market after the disastrous Fire Phone launch in 2014.

According to Reuters, the Amazon phone project is codenamed Transformer and is being led by a year-old group within Amazon devices unit called ZeroOne, whose mandate is to create breakthrough gadgets. The new Amazon phone would differ significantly from the original Fire Phone, which failed due to its lack of third-party apps and high price point.

Alexa at the Core

The new Amazon phone would feature Alexa as a central component, making it a potential mobile personalization device that can sync with home voice assistant Alexa and serve as a conduit to Amazon customers throughout the day. As envisioned, the new phone personalization features would make buying from Amazon.com, watching Prime Video, listening to Prime Music, or ordering food from partners like Grubhub easier than ever.

AI features are said to be a big focus for the Amazon phone, which is being seen internally as a way to encourage Amazon customers to use its AI products. This aligns with Amazon recent push to integrate AI across its product lineup, including the new Alexa+ assistant that was recently launched in the UK.

Learning From Past Mistakes

The original Fire Phone was released in 2014 and was discontinued just one year later. According to CNET, the phone was criticized for its poor app selection, being locked to Amazon ecosystem, and its premium pricing. The device famously sold for $199 with a two-year contract, while competitors offered more affordable options. The failure of the Fire Phone cost Amazon hundreds of millions of dollars in inventory and development costs.

Instead of apps and access to third-party app stores like Google Play—something that doomed the Fire Phone—this new Amazon phone could rely on AI features instead. The project is being led by former Microsoft Surface chief Panos Panay, who joined Amazon in 2023 to head up the devices division and bring his expertise from creating successful Surface devices.

Minimalist Design Inspiration

One inspiration for the new Amazon phone has been the Light Phone, according to sources familiar with the matter. As reported by Gizmodo, the Light Phone is a $700 minimalist smartphone with a camera, map, calendar, and not much else—no app store or web browser. A dumbphone or feature phone could also help Amazon market it as a potential second handset to accompany iPhones and Samsung Galaxies already in customers pockets.

This approach represents a significant departure from the original Fire Phone strategy, which attempted to compete directly with flagship devices from Apple and Samsung. Rather than trying to beat Apple and Samsung at their own game, the new Amazon phone could offer a simpler, AI-focused alternative.

What This Means for Consumers

If the new Amazon phone materializes, it could represent a significant shift in how users interact with Amazon services. Rather than competing on specifications or app ecosystems, the Amazon phone would leverage AI to create a personalized experience centered around Amazon commerce and entertainment platforms. The phone could essentially become a shopping companion that makes it easier than ever to make purchases through Amazon.

However, sources caution that the Amazon phone project could be canceled if the strategy shifts or due to financial concerns. Amazon has not yet sought wireless carrier partners for the device, indicating that plans are still in early stages. The company is reportedly exploring multiple form factors, including both smartphones and simpler devices.

The new Amazon phone represents another attempt by Amazon to accelerate customers AI usage either on the device or through Alexa. With the success of Alexa+ and the company broader AI ambitions, this could be Amazon most serious effort yet to establish a meaningful presence in the mobile market. Whether it will succeed where the Fire Phone failed remains to be seen.