Rumor: Amazon is working on a new smartphone. Another iPhone killer?

Amazon appears to be preparing a return to the smartphone market. According to a report by Reuters, the company is developing a device under the codename Transformer. At the same time, neither the release window, nor the price, nor even the final feature set has been determined yet, and the project itself could still be canceled. Amazon declined to officially comment on the information.

According to Reuters’ sources, the company is betting on deep integration with the Alexa virtual assistant and AI-based features. Transformer is expected to tie users more closely to Amazon’s ecosystem by simplifying shopping on the marketplace, watching Prime Video, listening to Prime Music, and even ordering food from partners like Grubhub. In other words, users may be able to access the company’s services without even installing the corresponding apps on the smartphone.

Amazon is choosing between two device formats: a regular smartphone and a simpler version that could be used as a secondary handset. The project is being handled by the internal ZeroOne group, which was created to develop “breakthrough” gadgets. It is led by J. Allard, a former Microsoft executive who worked on Xbox and Zune.

This would be Amazon’s second attempt to establish itself in the mobile segment. Back in 2014, the company released the Fire Phone, which was positioned as a breakthrough device with 3D effects and features for instantly recognizing products, music, and TV shows for later purchase on Amazon. But its success was undermined by a limited number of apps, the unconventional Fire OS, build quality issues, and an uninspiring design. In the end, Amazon discontinued it after roughly 14 months and wrote off $170 million in losses.

The market situation is not easy right now either: according to Reuters, Apple and Samsung together accounted for about 40% of global smartphone sales last year. IDC analysts forecast that smartphone shipments will fall by 12.9% in 2026 — the largest drop in history.

Meanwhile, OpenAI plans to combine a browser, ChatGPT, and a robot programmer into a single app. Intel is preparing a price hike that many people probably won’t like.

What smartphone do you use?