Reuters reported on Friday, March 20, that Amazon is developing a new smartphone within its devices and services unit, currently operating under the internal codename "Transformer." The report, which cites unnamed sources, indicates the device is designed to feature deep integration with the Alexa voice assistant to serve as a continuous AI-powered touchpoint. This project marks Amazon's first major foray into the smartphone market since the high-profile failure of the Fire Phone more than a decade ago. By launching an AI-centric device, the company aims to establish a persistent hardware presence and leverage generative AI capabilities to drive ecosystem loyalty. This strategic move is intended to enhance user engagement across the broader Amazon services landscape. While the initiative is viewed as a bold step into hardware, market sentiment remains cautious given Amazon's previous struggles in the mobile sector.
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