Amazon is making another attempt at smartphones, and you can likely imagine what this entails.

      Amazon once attempted to launch a phone, which ended disastrously. Now, it's making a comeback, this time focusing on AI.

      Amazon experienced a setback with the Fire Phone in 2014. Managed closely by Jeff Bezos, the device lasted just over a year before Amazon ceased production and absorbed a loss of $170 million from unsold stock. The company is now aiming to re-enter the smartphone arena.

      As reported by Reuters, Amazon is working on a new phone internally, referred to by the codename “Transformer.” This initiative is part of a division named ZeroOne, which is dedicated to developing innovative devices, led by J Allard, a former Microsoft executive known for his role in launching the Xbox and Zune.

      What capabilities will the Amazon phone have?

      The phone is being crafted as a personalization tool, designed to keep users connected with Alexa, Prime Video, Prime Music, and Amazon shopping throughout their day. A primary emphasis is on AI integration, which might eliminate the necessity for conventional app stores entirely. Envision asking Alexa to execute tasks instead of scrolling through apps.

      The idea resembles what Carl Pei discussed as the future of Nothing phones during his recent SXSW interview.

      Interestingly, Amazon has also considered a “dumbphone” version with limited features, partly inspired by the Light Phone. A more straightforward device could serve as a second phone for users looking to reduce distractions rather than contribute to them.

      Will this endeavor succeed this time around?

      That’s the key question. The Fire Phone failed due to a lack of popular applications, overheating issues, and providing minimal incentive for users to switch from their iPhones or Android devices. Amazon now confronts the same challenge, with Apple and Samsung still holding around 40% of global smartphone sales between them.

      Amazon is hopeful that a phone centered around Alexa and its extensive ecosystem might prove different. However, whether consumers will feel the same is uncertain. The release timeline for Transformer is not clear, and Reuters indicates it may still be canceled.

      In my view, the dumbphone concept could be a more advantageous starting point for Amazon. Competing in an already crowded smartphone market would be challenging, thus marketing an AI-powered “dumbphone” as a supplementary device for shopping might resonate well with users.

      Rachit is an experienced tech journalist with over seven years of experience reporting on consumer technology.

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