Mark Mahaney, Senior Managing Director at Evercore ISI, discusses Amazon and Duolingo during the program ‘Varney & Co.’
Amazon is reportedly crafting a new mobile phone, over ten years after discontinuing its Fire Phone, with intentions for an AI-powered gadget seamlessly integrated with Alexa and its expansive service ecosystem.
This fresh initiative by the technology behemoth bears the name “Transformer” and is under development within the company’s hardware and service division, as reported by Reuters, based on information from four individuals acquainted with the endeavor.
The news source indicated that the upcoming handset might function as a portable customization tool capable of synchronizing with the digital assistant system, Alexa.
Information concerning the expected cost of the phone, as well as Amazon’s monetary investment in the project and forecasted earnings, remained instantly uncertain.
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The emblem of Amazon adorns the exterior of Amazon Germany’s main office situated in Parkstadt Schwabing, Munich, Bavaria, on January 27, 2026. (Matthias Balk/picture alliance via Getty Images / Getty Images)
Informants conveyed to Reuters that the schedule for the initiative also remains vague, and mentioned its potential cancellation.
A representative for Amazon chose not to provide a statement to Reuters. Fox Business has contacted Amazon seeking a statement.
Amazon launched the Fire Phone in 2014, offering the device alongside a complimentary twelve-month subscription to Amazon Prime.
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Amazon is allegedly crafting a novel AI-powered mobile device connected to Alexa, signaling a possible re-entry into the fiercely contested portable device sector. (fizkes/iStock/Getty Images Plus / Getty Images)
Despite the mobile phone’s highly anticipated debut, it garnered varied critiques, with grievances spanning from an unimpressive operating platform to its elevated cost, originally set at $649.
The firm discontinued the smartphone following merely 14 months, incurring a $170 million write-off due to unpurchased stock, as reported by Reuters.
Apple and Samsung together accounted for approximately 40% of worldwide mobile phone sales in the previous year, as per Counterpoint Research, a sector Amazon is now reportedly rejoining with its alleged fresh gadget.
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The emblem for Amazon’s Alexa+ is showcased on a monitor at an Amazon Devices unveiling ceremony held in New York City on February 26, 2025. (Reuters/Brendan McDermid / Reuters)
As reported by Reuters, the upcoming mobile device would incorporate customization functionalities, enabling easy access for users to Amazon.com, Prime Video, and meal delivery applications such as Grubhub.
The initiative concentrates on embedding artificial intelligence within the gadget, potentially negating the requirement for conventional application marketplaces, the news source further stated.
Reuters provided information for this article.