Amazon reportedly developing new smartphone codenamed Transformer

Amazon is reportedly developing a new smartphone codenamed “Transformer,” marking a potential return to the mobile hardware space. According to Reuters, which cited anonymous sources, the device is being developed by the company’s Devices and Services division—which serves as Amazon’s hardware division. Within this division, the smartphone is said to be developed by a relatively new unit called ZeroOne. This specialized unit is led by J Allard, a former Microsoft executive who is widely known for his role in helping to create the Xbox entertainment console.

The proposed device would feature personalized features specifically tailored for Amazon apps, which would make it easier for users to interact with the company’s suite of applications, including Amazon Shopping, Prime Video, and Prime Music. According to the Reuters report, the smartphone would also support Alexa, the smart home assistant that Amazon has invested in heavily to expand support across most of its device ecosystem. Amazon has focused heavily on integrating artificial intelligence features into the device, viewing the hardware internally as a strategic vehicle to encourage customers to use its various AI products. This development represents Amazon’s first major smartphone initiative in more than 11 years, following the commercial failure and subsequent discontinuation of its Fire Phone.

This hardware initiative aligns with Amazon’s broader corporate strategy of going all-in on artificial intelligence. The company recently completed a $50 billion investment into OpenAI and is projecting $200 billion in capital expenditures—defined as the funds used by a company to acquire, upgrade, and maintain physical assets—toward its AI, chips, and robotics infrastructure in 2026.

The “Transformer” project remains distinct from Amazon’s existing software-based AI offerings, such as Alexa+. Amazon spent more than a year revamping its traditional assistant with generative AI capabilities, ultimately launching the upgraded Alexa+ this February. While Alexa+ operates as an assistant capable of handling tasks like planning travel itineraries, updating shared calendars, finding and saving recipes to a library, making movie recommendations, and helping with homework, the “Transformer” smartphone would embed these capabilities directly into dedicated hardware. Amazon declined to comment on the development of the new device.

Why it matters

Amazon is leveraging its massive AI infrastructure investments to drive hardware adoption, attempting to succeed where the Fire Phone failed by centering the device on its revamped AI assistant. The project represents a strategic effort to encourage customers to use its AI products directly through dedicated hardware.