SAN FRANCISCO, California: More than a decade after the failure of its Fire Phone, Amazon is working on a new smartphone project as part of a renewed push into consumer devices, according to people familiar with the matter.

The initiative, internally known as "Transformer," is being developed within Amazon's devices and services unit and aims to create a highly personalised mobile device that integrates closely with its Alexa voice assistant.

The effort revives a long-standing vision championed by founder Jeff Bezos of a voice-driven computing ecosystem similar to those depicted in science fiction, where users interact seamlessly with digital assistants throughout the day.

The new phone is expected to focus on artificial intelligence capabilities, potentially reducing reliance on traditional app stores by enabling users to interact directly through AI-driven features. Alexa is likely to play a central role, though it may not serve as the primary operating system.

As envisioned, the device would make it easier for users to shop on Amazon, stream Prime Video, listen to Prime Music, and order services such as food delivery from partners like Grubhub, the sources said.

Details, including pricing, launch timeline, and investment levels, remain unclear, and the project could still be shelved depending on strategic or financial considerations. Amazon declined to comment.

Amazon's move comes amid a broader industry push toward AI-powered hardware. Companies including OpenAI, Apple, Google, and Meta are exploring devices such as AI-enabled glasses, wearables, and other alternatives to traditional smartphones. However, previous attempts at AI-centric devices, such as the Humane AI Pin and Rabbit R1, have struggled to gain traction.

Amazon has also been working to strengthen its position in AI applications, where it has been perceived as lagging behind competitors despite the dominance of its AWS cloud business. Alexa, which underwent a major AI-driven overhaul before its relaunch in 2025, is seen internally as a key pillar of its future consumer strategy.

The company's earlier smartphone effort serves as a cautionary tale. Launched in 2014, the Fire Phone featured a camera-based shopping tool and a 3D display system, but suffered from limited app availability and technical issues. Despite being bundled with a free year of Prime membership, it sold poorly and was discontinued after 14 months, leading to a US$170 million write-down.

Colin Sebastian, an analyst at R.W. Baird, said Amazon's previous failure does not rule out another attempt but highlighted the challenge ahead. "Amazon will have to give consumers a compelling reason to switch phones, and people are pretty attached to the existing app stores," he said.

The new project is being led by ZeroOne, a group within Amazon's devices unit tasked with developing "breakthrough" products. It is headed by J Allard, a former Microsoft executive involved in products such as the Xbox and Zune.

According to people familiar with the plans, Amazon has explored both a traditional smartphone and a simplified "dumbphone" with limited features, potentially positioning it as a secondary device alongside existing smartphones.

The company has not yet engaged wireless carriers, and the project remains in development.