Evercore ISI Senior Managing Director Mark Mahaney analyzes Amazon and Duolingo for Varney & Co.
Amazon is developing a new smartphone more than a decade after scrapping the Fire Phone, with plans for an AI-driven device that integrates with Alexa and its broader ecosystem of services, according to reports.
The tech giant’s new effort is called Transformer and is being developed within the company’s Devices and Services division, Reuters reported, citing people familiar with the project.
According to the report, the new phone could be a mobile personalization device that can be synchronized with the voice assistant platform Alexa.
Details such as the phone’s expected price, Amazon’s financial commitment to the project and revenue projections were not immediately available.
Amazon launches 1- and 3-hour delivery options with new tiered pricing for customers
The Amazon logo is displayed on the facade of Amazon’s German headquarters in Parkstadt Schwabing in Munich, Bavaria, on January 27, 2026. (Matthias Bork/Photo Alliance via Getty Images/Getty Images)
Sources told Reuters that the project’s schedule is also unclear and could still be scrapped.
An Amazon spokesperson declined to comment to Reuters. Fox Business has reached out to Amazon for comment.
Amazon introduced the Fire Phone in 2014, which came with a free year of Amazon Prime.
HSBC focuses on significant headcount cuts as AI review progresses: report
Amazon is reportedly developing a new AI-driven smartphone with Alexa integration, marking a possible return to the competitive mobile market. (Fiskes/iStock/Getty Images Plus/Getty Images)
The smartphone was launched with much fanfare, but received mixed reviews, with complaints ranging from its lackluster operating system to its high price tag, which initially cost $649.
The company canceled the smartphone after just 14 months and charged $170 million for unsold inventory, according to Reuters.
Apple and Samsung together accounted for about 40% of global smartphone sales last year, according to Counterpoint Research, and Amazon will re-enter the market with a reported new device.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Amazon’s Alexa+ logo appears on a screen during an Amazon device launch event in New York City on February 26, 2025. (Reuters/Brendan McDiarmid/Reuters)
According to Reuters, the new smartphones will come with personalization features that will allow users to easily access food delivery apps such as Amazon.com, Prime Video, and Grubhub.
The project focuses on integrating artificial intelligence into devices, which could eliminate the need for traditional app stores, the outlet added.
Reuters contributed to this report.
