Amazon is developing a new smartphone with the internal codename "Transformers," marking its return to the mobile device market more than a decade after the failure of the Fire Phone in 2014.
According to insiders, the project is led by the company's Devices and Services division's ZeroOne team, focusing on AI integration and personalized experiences, deeply integrated with the Alexa ecosystem. The new device is aimed at becoming the user's all-day interaction hub, enhancing Amazon's data and service ecosystem on the consumer end.
Amazon's previous Fire Phone was discontinued 14 months after its release, resulting in an inventory write-down of approximately $170 million. This relaunch comes amid rising competition in AI hardware, although the market remains cautious about its commercial viability.
Industry data shows that the global smartphone market is highly concentrated, with Apple and Samsung Electronics together accounting for about 40% of the market share.
