- The effort follows the company’s unsuccessful 2014 Fire Phone launch, which faltered due to limited app support.
- The upcoming device would enable users to handle everyday tasks such as shopping, streaming, and service ordering.
- The initiative comes as Amazon ramps up investment in artificial intelligence, with planned capital expenditures rising sharply to $200 billion.
Amazon.com Inc. (AMZN) is reportedly revisiting its ambitions in the smartphone market, more than a decade after its high-profile Fire Phone failure.
According to a Reuters report, the company is now developing a new phone internally dubbed “Transformer,” aiming to integrate artificial intelligence deeply into everyday mobile use and strengthen ties to its ecosystem of services.
Reimagining The Smartphone Experience
The project, housed within Amazon’s devices and services division, is designed to serve as a personalized mobile hub that connects to Alexa and other offerings, the report said.
The phone could streamline activities such as shopping, streaming content, and ordering services directly through Amazon’s platforms, reducing reliance on conventional app stores.
Amazon stock edged 0.8% lower in Friday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘extremely bearish’ territory amid ‘low’ message volume levels.
A Second Attempt After A Costly Misstep
According to the report, Amazon’s 2014 launch of the Fire Phone struggled due to limited app availability, high prices, and hardware issues, ultimately leading to its discontinuation within 14 months and financial losses.
The company could again face dominant rivals such as Apple Inc. (AAPL) and Samsung Electronics, which together command a substantial share of global smartphone sales.
Ultimately, the device represents Amazon’s broader push to embed AI into consumer products and encourage deeper engagement with its services. Notably, the tech giant increased its planned capital spending for 2026 to $200 billion, a significant jump from roughly $130 billion disclosed for 2025.
Notably, massive AI outlays nearing $700 billion by major technology companies in 2026 are heightening investor concerns, as they weigh the impact on profits and the potential long-term risks to businesses.
AMZN stock has declined by over 9% year-to-date.
Also See: UL, MKC Stocks Jump Premarket: McCormick Reportedly Confirms Buying Unilever’s Food Business
For updates and corrections, email newsroom[at]stocktwits[dot]com.