Amazon Plans Smartphone Comeback with New Device

Amazon is developing a new smartphone, reviving a category it abandoned after its first attempt, the Fire Phone, flopped more than a decade ago. The project is reportedly led by a year-old internal group named ZeroOne, which is led by J Allard, the former Microsoft exec behind the Zune and Xbox.

The device, codenamed “Transformer,” is designed to sync with Alexa and serve as a constant connection to Amazon’s services ecosystem.

While Apple and Samsung still own roughly 40% of global sales, and the market is heading for its worst year ever, with shipments expected to drop 13% in 2026, Amazon is reportedly exploring both a full smartphone and a pared-down dumbphone betting that Alexa can finally earn a place in your pocket.

The Fire Phone launched at $649, got reduced to $159, and was killed after 14 months, leaving Amazon with a $170M charge tied largely to unsold inventory.