Amazon's AI-powered smartphone vision, merging tech with daily life.
Amazon is reportedly making another push into the smartphone market, developing an AI-driven device more than a decade after its Fire Phone flopped. Codenamed “Transformer,” the project aims to deeply integrate Alexa and Amazon’s broader services ecosystem, according to Reuters.
The new phone is being developed within Amazon’s devices and services unit. Sources familiar with the matter suggest it could act as a mobile personalization device, seamlessly syncing with Alexa.
The original Fire Phone, launched in 2014 with a free year of Amazon Prime, was discontinued after just 14 months due to mixed reviews and a high price tag of $649. Amazon took a $170 million charge for unsold inventory.
Details on the “Transformer’s” potential price, Amazon’s financial commitment, and revenue projections remain unclear. The project’s timeline is also uncertain and could be scrapped, according to Reuters.
If launched, Amazon would be re-entering a market dominated by Apple and Samsung, which together accounted for approximately 40% of global smartphone sales last year, according to Counterpoint Research.
The new smartphone’s personalization features would allow users to easily access Amazon.com, Prime Video, and food delivery apps like Grubhub. The project is focused on integrating artificial intelligence to potentially eliminate the need for traditional app stores, Reuters reports.