When Amazon debuted the Fire Phone in 2014, it was meant to rival Apple and Samsung, similar to the company's Fire tablets. However, after selling fewer than 140,000 units, the Fire Phone was ignominiously tossed in the bin after barely a year of existence.
It's been over a decade, but a new report from Reuters claims Amazon is ready to dip its toes back into the constricting seas of smartphones.
The rumored phone, allegedly codenamed "Transformer," is being developed as a "mobile personalization device" that would sync with Amazon's Alexa assistant and act as a conduit to Amazon services.
The goal is to create a smartphone that offers Amazon customers discounts through Prime and gives the company new tracking data on its customers that is only available via smartphone.
Much like how Google is deeply integrated into some of the best Android phones around like the Pixel 10 Pro and Galaxy S26 Ultra, Amazon's version would feature easy access to Amazon.com, Prime Video, and Music, as well as ordering from partnered services like Grubhub.
As of this writing, Reuters was not able to determine a potential release date, price, or any technical specifications. It sounds like it's early enough in development that Amazon can quickly pivot if the project doesn't meet financial projections or if the strategy changes.
Why now?
As mentioned, the original Fire Phone was an unmitigated disaster. The phone featured Amazon's proprietary FireOS, which was missing popular apps from Google and Apple. It also drained battery life, largely because of the multi-camera screen designed to display 3D images.
Reuters reports that a new group at Amazon, ZeroOne, has a mandate to create "breakthrough" gadgets. The new project could take two paths: a traditional smartphone that utilizes Amazon's vast amount of data, or a "dumb phone" that acts as a secondary device.
"At first glance, this move is difficult to justify. Amazon is unlikely to build a better smartphone than Apple, Samsung, or leading Chinese OEMs," IDC analyst Francisco Jeronimo told Tom's Guide. He noted that the smartphone market is expected to contract in 2026 due to the ongoing RAM crisis, making it the worst possible time to launch a new device.
Amazon cannot justify entering a market for tens of thousands of units when its business model requires a significantly larger impact.
Francisco Jeronimo, IDC analyst
Jeronimo also questioned the idea of Amazon marketing a new phone as a secondary or "companion" phone. "Amazon cannot justify entering a market for tens of thousands of units when its business model requires a significantly larger impact."
Where Amazon might have an impact is if the company is able to combine its vast ecosystem of retail, content, and cloud services with a robust AI foundation, which is where Alexa+ could come in — provided Amazon is able to master "agentic" actions.
However, Jeronimo points out that the window to do so is minuscule, as every other phone maker is trying to do similar things with their devices. "The real challenge is not execution; it is choosing the right category where [Amazon] can deliver meaningful, defensible value in an AI-first world."
