Rumors Suggest Amazon Is Set to Return to the Smartphone Market!
According to reports from Reuters, TechCrunch, and other international media outlets, Amazon is planning to re-enter the smartphone market more than a decade after exiting it, with plans to launch a new smartphone codenamed “Transformer.”
Reports indicate that development of this new phone is being led by Amazon’s ZeroOne lab within the Devices and Services division, with a focus on deeply integrating its Alexa smart assistant to provide users with a seamless experience for shopping, streaming media, and other services. The ZeroOne lab is headed by J Allard, a former Microsoft executive who was involved in the development of the Xbox and Zune.
As early as 2014, Amazon launched its first smartphone, the Fire Phone. However, this device—personally overseen by Amazon founder Jeff Bezos—was discontinued just 14 months after its release due to a lack of support from mainstream apps and excessive battery drain caused by its 3D display feature. The company also recorded a $170 million write-down for unsold inventory.
More than a decade later, Amazon is preparing to make a comeback and re-enter the smartphone market. This is because Jeff Bezos has long sought to create a ubiquitous voice assistant device, similar to the concept of the computer in “Star Trek,” with the goal of competing against rivals such as Apple, Google, and Samsung.
Reports indicate that this phone will be centered around AI and voice capabilities. While Alexa will be one of the key features, it may not necessarily serve as the phone’s primary operating system. Amazon may consider partnering with the Android system and hopes to reduce its reliance on traditional app stores through voice and AI interactions.
Additionally, Amazon is exploring the launch of a minimalist “dumb phone” to address screen addiction, a design inspired by the Light Phone. The new phone’s personalized features will allow it to sync with Alexa devices in the home, providing round-the-clock access to the Amazon ecosystem and enhancing users’ shopping and streaming experiences.
Although this plan sounds ambitious, the phone’s pricing, specifications, or release date remain unclear. Furthermore, the current shortage of memory chips and soaring prices have caused the entire smartphone market to face a year-over-year sales decline of over 10%, putting Amazon under even greater pressure as it re-enters the market at this time. The report also notes that Amazon’s project could ultimately be canceled due to strategic shifts.