The smartphone market could see a return of a big name soon. Though it will not be Nokia or HTC, but Amazon. The American giant is reportedly planning a comeback to the world of smartphones. Amazon’s first attempt ended up in a massive disaster with the Fire Phone back in 2014.
According to a report from Reuters, the new smartphone project is codenamed, “Transformer.” The new device will come with built-in Alexa integration – Amazon’s voice assistant. The smartphone could serve as a personalised mobile tool that links users to Amazon services such as Prime Video and Amazon Music.
Amazon founder Jeff Bezos is said to have had a vision of a voice-driven computing assistant similar to the voice-controlled computer in sci-fi series “Star Trek.”
Amazon to take on Apple’s ecosystem
The Amazon smartphone could create a perfect gateway to bring more users to the company’s various services. A user could buy products from Amazon’s website, and read books via the Kindle store. They could also seamlessly watch movies on Prime Video.
This could potentially allow Amazon to take on Apple’s ecosystem. The Cupertino giant offers its own music, streaming and other services, similar to Amazon.
How will Amazon’s phone work?
The Transformer project is led by ZeroOne, a group within Amazon’s devices division focused on creating new gadgets. The team, headed by former Microsoft executive J Allard, is exploring designs for both a traditional smartphone and a simpler “dumbphone” variant aimed at reducing screen addiction.
AI integration will likely be the focal point of the device. This could reduce reliance on traditional app stores by enabling voice-driven interactions and seamless access to Amazon’s services.
Though details regarding other functionality and the potential release date remain unclear for now.
Amazon’s failed Fire Phone
In 2014, Amazon launched the Fire Phone – a device developed under Jeff Bezos’ vision. Unlike traditional smartphones at the time, the Fire Phone came with 3D cameras that could create a dynamic effect on the screen depending on how you looked at it.
The device ran on FireOS, a customised version of Android, without Google services such as Google Maps or the Play Store. This was cited as one of the reasons for the device’s failure, as the Amazon Appstore lacked the app inventory on Google’s Playstore or even Apple’s Appstore.
It is unclear if Amazon will use its own operating system for the Transformer device, or if it would stick to Android.
The Fire Phone was deemed a failure. Amazon even slashed its price from $649 unlocked to $159 to gain more sales. It was discontinued within 14 months. Amazon reportedly wrote off $170 million in losses due to the device.
Though Amazon has continued to sell Kindle and Fire tablets since.
Amazon’s re-entry into the smartphone market comes at a difficult time. Rising memory prices have led to a slowdown in smartphone shipments. Reports indicate that smartphone shipments may decline by 13 per cent globally in 2026. The market is also largely dominated by two players Apple and Samsung, who jointly hold 40 per cent share.
