Reports from Reuters indicate that Amazon's devices and services unit is working on a new smartphone named Transformer, which heavily relies on the enhanced Amazon assistant, Alexa+, and the shopping experience. However, details remain scarce: the expected price, development budget, operating system, and launch date are all unknown, with the possibility of the project being canceled altogether. When asked, Amazon told WIRED that the company does not comment on rumors and speculations.
The company recalls its previous failure with the Fire Phone, launched in 2014 and quickly discontinued due to a limited app ecosystem and poor sales, despite its 3D screen and the Firefly feature that allowed purchases by pointing the camera at objects.
Current speculations also stem from reports that Amazon may launch an Android-based tablet from the Fire series this year instead of its own Fire OS, which lacks native access to the Google Play Store. Some believe this shift might mean the Transformer phone will rely on Android; however, Reuters indicates that the Transformer could offer an AI interface that reduces the need for traditional app stores.
The concept of a generated interface or operating system is no longer new; at MWC 2024, Deutsche Telekom, the parent company of T-Mobile, showcased a conceptual phone that generates its interface while being spoken to, rather than relying on traditional apps. Carl Pei told WIRED Radio that the future may hold phones with a single app, which acts as the operating system.
AI companies are developing chatbot capabilities to perform tasks on behalf of users, bringing us closer to that vision. Google recently rolled out task automation features in its Gemini assistant on Samsung and Pixel phones, allowing users to request services such as Uber or food delivery via apps like DoorDash. OpenAI is also collaborating with former Apple designer Jony Ive on new AI-powered devices, though details remain limited.
Reuters notes that Amazon's phone might draw inspiration from the minimalist Light Phone produced by a Brooklyn company, which aims to reduce user distraction. Even if the Amazon device does not focus on reducing digital addiction, the Transformer could find its niche as a secondary device, especially in the difficult-to-penetrate U.S. market dominated by Samsung and Apple.
Francisco Jeronimo, VP of data and analytics at IDC, expresses skepticism, saying, “What can they offer users that isn’t already available from Apple or Samsung? That’s what makes it hard for me to understand the rationale behind this project.” He adds that the situation today is worse than it was ten years ago, pointing out that market and economic conditions may drive the cost of the Transformer device much higher than planned due to memory shortages and supply chain issues stemming from the Iranian war and tariffs.
Jeronimo repeats his sharp warning: “If this is a phone, it’s dead before it’s born.” From a hardware perspective, he believes it will be impossible to compete with Apple, Samsung, and Xiaomi, and from a software angle, there may only be a short-term opportunity, as Apple and Samsung, and the Android operating system in general, move very quickly.
If Alexa+ is the primary driver of the Transformer, Jeronimo thinks the device could be a means to explore chatbots on a companion device that is always on hand; Alexa services have largely remained within stationary devices in homes, and while Alexa+ can be installed on existing phones, Amazon does not have much control over the experience, nor can it be made the default assistant on an iPhone, for instance. Thus, a phone-like device or a wearable may allow Amazon greater control over the experience and user data.
Amazon recently acquired Bee AI, which developed a wearable device that listens continuously and summarizes daily conversations, creating to-do lists without explicit prompts. Maria de Lourdes Zollo, who now works at Amazon and is a part of Bee, told WIRED during CES 2026 that “something is in the works,” but she did not provide further details.
Any new device from Amazon will have to contend with the company’s mixed history in user privacy. Amazon ranked second to last in the 2025 Ranking Digital Rights Index. Investigations have shown that the company failed to protect customer data, and Ring cameras contributed to a climate of local surveillance, while a 2022 report revealed that Alexa chat transcripts were used for targeted advertising.
Alexander Gamero-Garrido, an assistant professor at UC Davis specializing in online privacy, contributed to the 2022 report, stating that newer research shows data points like age and gender can be inferred from voices interacting with Alexa devices, and are used to customize ads. He expresses concern by stating that Amazon “is not a consumer electronics company that puts a great deal of emphasis on privacy,” and that a phone from the company would significantly increase the potential privacy damage since phones are used far more than voice assistants or e-book readers.
Gamero-Garrido believes Amazon could use the Transformer as a tool for gathering device usage data and building an advertising network to compete with Alphabet and Meta, which are facing regulatory scrutiny in the EU and California. Amazon may adopt a model similar to what it does with Fire TV (Amazon's streaming platform integrated into third-party screens or through a dongle), where it retains ownership of the operational data even if the device was not purchased from Amazon.
The result is “centralizing every network movement through its own infrastructure to enhance its advertising business.” He cites a real Amazon patent that proposes the possibility of detecting illness from a person's voice and then recommending purchasing a specific medication via Amazon Health, pointing out that having such capabilities on a device you always carry expands the scope of listening to conversations and increases the potential for delivering targeted ads.
Nonetheless, Kassem Fawaz, an assistant professor at the University of Wisconsin-Madison specializing in consumer device security and privacy, points out that consumers have shown general acceptance of Amazon devices, explaining that “consumers, unfortunately, value utility and price more than privacy.”
The personality of Panos Panay, Amazon’s devices and services chief who joined the company in 2023, could be a factor accelerating the project; he previously helped transform Microsoft’s Surface product line into a prestigious brand through his compelling presentations. Panay has brought similar energy to some of Amazon’s device announcements, such as the Kindle Scribe Colorsoft, though he has not achieved the same level of success as Surface. Jeronimo says that Panos may be capable of making such initiatives successful, emphasizing his confidence in his abilities.
In summary, even if Amazon announces an AI-powered Transformer phone with Alexa+, the lack of details, strong competition from established companies, and potential privacy issues cast doubt on its prospects of success, according to industry experts.