Amazon is reportedly developing a new smartphone under the 'Transformer' project, more than a decade after the Fire Phone's failure. Sources tell Reuters the device would focus on voice-driven shopping and AI features, potentially positioning it as a secondary device for Prime members. The project is being led by a new unit called ZeroOne, with development reportedly inspired by the minimalist Light Phone.

This represents a significant gamble for Amazon, which sold fewer than 140,000 Fire Phones in 2014 before discontinuing the product. Industry analysts point to the steep competition from Apple, Samsung, and Chinese manufacturers as major obstacles. The Fire Phone's failure was attributed to its inability to compete with flagship devices like the iPhone 6 and Galaxy S5, which offered superior displays, cameras, and overall user experience.

The reported strategy focuses heavily on Alexa integration and AI capabilities to handle everyday tasks like ordering food through GrubHub or streaming content from Prime services. While some see potential in an AI-first approach, IDC's Francisco Jeronimo notes that the smartphone market is projected to decline 13% in 2026 due to memory shortages. Amazon's challenge will be convincing consumers to adopt another device when its Fire Phone history suggests the company still struggles to compete in the premium smartphone space.