Amazon is reportedly building an Alexa-powered phone

More than ten years after the Fire Phone crashed and burned, Amazon might be getting ready to take another swing at the smartphone market.

According to a report from Reuters, Amazon is developing a new phone centered around its AI assistant, Alexa. The internal project carries the code name "Transformer."

A Microsoft veteran takes notes from the Light Phone

Development is happening inside a secretive Amazon group called ZeroOne. The team is led by J Allard, a familiar name in consumer tech who previously worked on Microsoft's Xbox and Zune.

Interestingly, Allard’s team has reportedly explored both standard smartphones and "dumbphones." One major source of inspiration is the $700 minimalist Light Phone, a niche device that sports a black-and-white screen and intentionally lacks an app store.

While Alexa is supposed to be the centerpiece of the device, sources note that it won’t necessarily serve as the phone's primary operating system.

Skipping the app store entirely

One of the biggest reasons the original $199 Fire Phone flopped was the lack of popular apps. Amazon discontinued it just a year after launch. This time, the team seems determined not to fight that losing battle again.

Instead of trying to persuade developers to build full-blown apps for an Amazon ecosystem, the company wants to lean entirely into AI. Transformer may skip a traditional app store altogether, relying instead on mini apps similar to the tools inside ChatGPT.

There is no launch date, pricing, or even a guarantee that the phone will ever see the light of day. Amazon is under immense pressure to prove its AI chops against rivals, but its software track record isn't spotless right now. Earlier this year, users voiced frustration after an automatic upgrade to the LLM-powered Alexa Plus, complaining that the assistant became slower and flooded with ads.

Why it matters

For everyday consumers, an AI-first companion with a distraction-free screen sounds great on paper for anyone suffering from smartphone burnout. But we don't think anyone should hold their breath just yet. Given Amazon's track record with hardware platforms and the fact that Alexa Plus is currently irritating loyal users with commercial clutter, you definitely shouldn't plan on replacing your phone anytime soon.

For the tech industry, this project shows how hardware makers are still desperately searching for the right post-smartphone form factor. Dedicated AI gadgets like Humane's Pin and Rabbit's R1 failed largely because they tried to do too much without a practical interface. Borrowing the hardware restraint of the Light Phone while letting an AI handle lightweight mini apps looks like a much more pragmatic compromise.

We think ditching the app store is the smartest decision Amazon could make here, because beating Apple and Google at their own developer game is completely impossible. However, the obvious danger lies in Amazon's monetization instincts. If an AI device relies entirely on a single assistant to navigate the world, stuffing that assistant with retail promotions will instantly kill whatever appeal a minimalist phone had.