Amazon develops new smartphone centred around Alexa, report claims

Amazon appears to be preparing a return to the smartphone market, more than a decade after discontinuing its earlier attempt, the Fire Phone. According to a Reuters report citing unnamed sources, the company is currently working on a new smartphone project internally referred to as “Transformer.”

The upcoming device is reportedly being developed within Amazon’s Devices and Services division. It is expected to include a range of personalised features to make it easier for users to interact with Amazon’s ecosystem of applications. These include services such as Amazon Shopping, Prime Video, and Prime Music, which are expected to be tightly integrated into the overall experience.

A central component of the device will be Alexa, Amazon’s voice-based smart assistant, which the company has continually enhanced with new artificial intelligence capabilities. The smartphone is expected to place a strong emphasis on AI-driven features, encouraging users to engage more deeply with Amazon’s growing portfolio of AI-powered products and services.

Reports suggest that development is being handled by a relatively new internal team, ZeroOne, a unit within the Devices division. This group is led by J Allard, a former Microsoft executive known for his role in creating the Xbox platform.

The timing of this development aligns with Amazon’s broader strategic push into artificial intelligence. The company has significantly increased its investment in the space, including a reported $50 billion investment into OpenAI, alongside projections of up to $200 billion in capital expenditures by 2026 focused on AI, semiconductor technologies, and robotics initiatives.

In parallel, Amazon has also been working extensively to upgrade Alexa with generative AI features. After more than a year of development, the company introduced the updated assistant, Alexa+, earlier this year. While retaining its smart home functionality, Alexa+ now supports a wider range of capabilities, similar to those of other advanced AI assistants. These include tasks such as planning travel itineraries, managing shared calendars, discovering and saving recipes, recommending movies, assisting with schoolwork, and providing in-depth information on various topics.