Amazon is developing a new phone, internally nicknamed “Transformer,” aimed at deepening user engagement with its AI assistant, Amazon Alexa, Reuters reported. The device is intended less as a direct rival to Apple or Samsung handsets and more as a personalized interface to keep people within Amazon’s services, with AI possibly reducing or replacing conventional apps.
Still under development, Transformer could take several forms — a conventional smartphone or a simpler “dumbphone” that might serve as a secondary device. A dedicated innovation team focused on breakthrough hardware is leading the effort, but key details such as price, launch timing, and final design remain uncertain.
Alexa+ adoption and recent hardware moves
Amazon’s upgraded assistant, Alexa+, which launched in March 2025, drew tens of millions of sign-ups in its first nine months and drove engagement rates two to three times higher than the prior version, according to Amazon. The company has said roughly 76% of tasks users perform with Alexa+ cannot be replicated by competing AI assistants.
At CES 2026, Amazon showcased new AI-enhanced hardware to expand Alexa+ usage. The company introduced the Echo Dot Max and a refreshed Echo Studio, both built for deeper Alexa+ integration, extended Alexa+ into BMW vehicles, and launched a web-based Alexa+ version accessible beyond Amazon’s own devices.
The Fire Phone’s shadow
Transformer represents a renewed push into mobile after Amazon’s Fire Phone failure. Launched in July 2014 under then-CEO Jeff Bezos, the Fire Phone flopped commercially — selling fewer than 35,000 units in its first two months and prompting a rapid price cut from $650 to 99 cents as Amazon cleared inventory.
The smartphone market remains dominated by established players. As of February 2026, Apple held 31.5% of global smartphone shipments and Samsung 21.4%, together accounting for about 53% of the market, according to StatCounter.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
