Amazon's 'Transformer' phone aims to deepen Alexa engagement
Amazon is working on a new phone, internally called “Transformer,” to accelerate user engagement with its AI assistant Amazon Alexa, Reuters reported Friday. The device is conceived not as a conventional competitor to…
Amazon is developing a new phone, internally nicknamed “Transformer,” designed primarily to deepen engagement with its AI assistant, Alexa, Reuters reported. Rather than positioning the device as a direct challenger to flagship phones from Apple or Samsung, the project appears focused on creating a personalized interface that keeps users inside Amazon’s services — with AI potentially reducing or replacing traditional apps.
Still in development, Transformer could appear in several forms: a full-featured smartphone or a simpler secondary “dumbphone.” A dedicated innovation team within Amazon that focuses on breakthrough hardware is leading the effort, but key details — including price, exact design and launch timing — remain undecided.
Transformer builds on momentum around Amazon’s upgraded assistant, Alexa+. Launched in March 2025, Amazon says Alexa+ attracted tens of millions of sign-ups in its first nine months and produced engagement rates two to three times higher than the prior version. According to Amazon, roughly 76% of tasks users perform with Alexa+ can’t be replicated by competing AI assistants.
At CES 2026, Amazon showcased new hardware designed to extend Alexa+ usage: the Echo Dot Max and a refreshed Echo Studio, deeper Alexa+ integration with BMW vehicles, and a web-based Alexa+ that works beyond Amazon’s own devices. Those moves signal the company’s broader strategy of tying AI experiences to a growing hardware and services ecosystem.
The Transformer effort marks a renewed push into mobile after Amazon’s 2014 Fire Phone misstep. Launched in July 2014 under then-CEO Jeff Bezos, the Fire Phone sold poorly — fewer than 35,000 units in its first two months — and Amazon quickly cut the price from $650 to 99 cents as it cleared inventory.
The smartphone market remains concentrated. As of February 2026, StatCounter reported Apple controlled about 31.5% of global smartphone shipments and Samsung about 21.4%, together roughly 53% of the market.
Amazon’s Transformer, if it ships, will indicate how far the company is willing to push hardware to lock users into an Alexa-centric experience. For now, Reuters says, the project remains an experiment with many open questions.