Amazon is planning to launch a new smartphone. This comes 10 years after their first attempt with the Fire Phone. The new device is internally known as 'Transformer'. It is being developed by Amazon's Devices and Services unit. Reuters reported this, citing four sources familiar with the matter.
The phone is seen as a personal device. It will sync with the home voice assistant, Alexa. This will allow Amazon to connect with customers all day. This effort continues a long-standing vision. Founder Jeff Bezos dreamed of a voice-controlled computer. It would be like the one in 'Star Trek'.
Bezos wanted a smartphone focused on shopping. It could compete with Apple. It would offer convenient shipping and Prime member discounts. Amazon could gather user data. This data, available only on mobile, complements purchase history and content preferences.
There was no prior news about Amazon developing a new smartphone. Reuters could not determine details like price or expected revenue. The company's financial commitment to the project is also unclear. The timeline for 'Transformer' is also uncertain. Sources warned it could be canceled. This might happen due to strategy changes or financial reasons. Amazon declined to comment.
What is the phone?
The new phone's customization features should make shopping easier. Users can browse Amazon, watch Prime Video, listen to Prime Music, or order food. This involves partners like Grubhub. The sources shared these details.
A key focus for 'Transformer' is AI integration. This could eliminate the need for traditional app stores. Users usually download and register apps before use. AI integration might change this.
Alexa will likely be a core feature. However, it might not be the phone's main operating system. The history of AI-integrated devices has many failures. Examples include the Humane AI pin and Rabbit R1. Both aimed to offer generative AI. They did not require logging into computers or phones. Both faced negative reviews and ceased production.
This has not stopped others. Many are still developing AI devices. These devices aim to move away from app-based designs. OpenAI is working with Jony Ive on prototypes. Apple, Google, and Meta are also developing AI glasses. They are also working on other devices like watches and headphones.
Alexa is undergoing a multi-year redesign. It focuses on AI and will launch in 2025. This is seen as crucial for Amazon's future consumer services. The phone is another attempt by Amazon. It aims to speed up customer use of AI. This can happen on the device itself or via Alexa.
Fire Phone Failure
Amazon's first smartphone, the Fire Phone, launched in 2014. It had a camera-based shopping tool. This tool recognized products. It found them on Amazon and added them to the cart. This was a key feature.
The Fire Phone's Fire OS was missing popular apps. These apps were available on Android and iOS. It had a complex, multi-camera display. This showed 3D images. It used a lot of battery power. The phone often overheated. This was a major drawback.
Amazon offered a free year of Prime with the Fire Phone. Despite this, it did not sell well. Amazon dropped the price significantly. It went from $649 to $159. The phone was canceled after 14 months. Amazon lost $170 million on unsold inventory.