Amazon is reportedly building a new smartphone codenamed "Transformer" — its first hardware attempt in the mobile space since the Fire Phone quietly died in 2015. The project is being developed inside a relatively new unit called ZeroOne, which sits within Amazon's Devices and Services division and is led by J Allard, the former Microsoft executive who helped create the Xbox.

According to Reuters, which broke the story citing anonymous sources, AI integration is described internally as a "key focus." The device is being designed to funnel users toward Amazon's suite of AI-powered services, including Alexa+, Amazon Shopping, and Prime Video. One particularly notable detail: the phone may rely on AI in place of a traditional app store, taking design inspiration from the minimalist Light Phone.

A Second Swing at Mobile

The Fire Phone launched in 2014 and was discontinued within a year after selling poorly. Amazon's devices division has also struggled financially since, with the Alexa business reportedly costing the company roughly $25 billion over four years before the more capable Alexa+ launched this past February.

Why now? Amazon has been doubling down on AI infrastructure, projecting $200 billion in capital expenditures in 2026 toward AI, chips, and robotics. A Transformer phone would be a consumer-facing surface for all of it — letting Amazon bring Alexa+ and its AI products directly into users' pockets.

No release timeline or pricing has been disclosed, and Amazon declined to comment. The project is reportedly still in early development.

What Would Make It Different

The AI-instead-of-app-store angle is the most interesting part. Rather than competing with iOS and Android on apps, Amazon would be betting that AI can replace the need for discrete apps entirely — at least for its own ecosystem.

Whether that's compelling enough to pull users away from Apple and Samsung remains the central question.