Amazon is working on a new smartphone—and this time, it’s not just another handset. The device, internally known as the Transformer phone, is built around Alexa, the company’s AI-powered voice assistant. According to a Reuters report, four people familiar with the project confirmed that the device is being developed within Amazon’s devices and services division—and the goal is clear: keep users tied to Amazon’s growing ecosystem of services.
The Transformer phone is not meant to go head-to-head with the iPhone or a Samsung Galaxy. Instead, it’s being positioned as a personalized mobile device—something that deepens a user’s connection to Amazon shopping, Prime Video, Amazon Music, and food delivery apps like Grubhub. Think of it as Alexa in your pocket, available to you every minute of the day.
Things we already know about the Transformer Phone
The Transformer phone project sits inside a newly formed unit called ZeroOne, led by J Allard, a former Microsoft executive best known for co-creating the Xbox and Zune. Allard joined Amazon specifically to lead what the company described as a “special projects team dedicated to inventing breakthrough consumer product categories.” According to TechCrunch, the ZeroOne unit is led by Panos Panay, Amazon’s head of devices and services.
A particularly interesting aspect of the Transformer phone is its potential departure from the conventional app store approach. Sources say the device could use AI to let users complete tasks—like ordering food, shopping, or streaming content—without ever downloading a separate app. That would be a significant departure from how smartphones work today.
Key features that are said to be connected to the Transformer phone are:
- Alexa+ integration lets you use AI hands-free all day long.
- You can easily access Amazon.com, Prime Video, and Amazon Music without switching apps.
- As an Amazon Prime member, you can get personalized discounts and deals.
- Ordering food through Grubhub and other delivery services that work with them
- AI-driven task management that could take the place of traditional app-based interactions
This news comes right after Amazon’s significant foray into AI. The company debuted Alexa+ in early 2025, a generative AI-enhanced version of its original voice assistant. Engadget reports that Alexa+ gained tens of millions of users in its first nine months, and engagement levels were two to three times greater than those of the original Alexa.
Amazon has also been pouring money into AI infrastructure, planning $200 billion in capital expenditures for 2026 alone.
Of course, Amazon has been here before. The company launched the Fire Phone back in July 2014 — and it flopped badly. The device was discontinued within 14 months of sales of fewer than 35,000 units, resulting in a $170 million write-down. It was panned for its gimmicky 3D interface, poor battery, high price, and lack of app support. The failure continues to have a significant impact. Now, with the Transformer phone, Amazon is trying a unique approach—lead with AI and ecosystem value, not hardware novelty.
How well does the Transformer Phone do in the market today?
Pulling off a successful Transformer phone launch won’t be simple. As of early 2026, Apple holds around 31.5% of global smartphone shipments, and Samsung commands roughly 21.4%, meaning just those two brands account for more than half the market. Additionally, analysts expect rising component costs to cause a decline in global smartphone shipments in 2026.
IDC analyst Francisco Jeronimo told Tom’s Guide that Amazon is unlikely to outbuild Apple or Samsung in hardware alone and questioned whether a companion or secondary phone concept could generate enough volume to justify the investment. Still, analysts acknowledge that if Amazon can combine its massive retail and cloud ecosystems with a polished Alexa+ experience, there may be a real opening—especially for users already deeply embedded in the Amazon ecosystem.
There are still many unknowns. Reuters could not find out how much Amazon has spent on the Transformer phone project, its retail price, or when—or if—it will launch. Sources indicated that Amazon could still cancel the project if its priorities shift. Multiple outlets reached out to Amazon, but the company declined to comment.
One detail worth noting, according to 9to5Mac: the Transformer phone may be positioned as a secondary device—something people carry alongside their iPhone or Android phone rather than replacing it. That could significantly lower the bar for adoption, since Amazon wouldn’t need to convince anyone to give up their primary smartphone.
In conclusion, the Transformer phone is Amazon’s most ambitious hardware bet since the Fire Phone failure over a decade ago. Whether it succeeds will depend on how well Alexa+ performs as a daily driver and whether users actually want an AI-first, Amazon-centric smartphone in their lives. The project is still in early stages, the timeline is uncertain, and nothing is guaranteed—but the intent is clear: Amazon wants to be in your pocket every single day.
