Amazon Wants to Relaunch Fire Phone With AI

Amazon is developing a smartphone that will integrate artificial intelligence capabilities and sync with the company’s voice assistant Alexa, Reuters reported Friday (March 20), citing unnamed sources.

Known internally as “Transformer,” the phone will offer personalized features that will enhance the Amazon shopping experience and services such as Prime Video and Amazon Music, according to the report.

Amazon’s financial commitment and timeline for the project are not known, and the smartphone effort could be scrapped, the report said.

Reached by PYMNTS, Amazon declined to comment on the report.

The company introduced its first smartphone, the Fire Phone, in 2014. About three months later, Amazon had cut the price of a $199 model of the phone to 99 cents due to sluggish sales, PYMNTS reported. The Fire Phone was discontinued after a little over a year.

PYMNTS reported in 2023 that the Fire Phone lacked apps that people liked and wanted to use and that it was unable to get consumers to ditch their Apple and Android devices.

Amazon unveiled a revamped version of its voice assistant called Alexa+ in February 2025, saying that it is infused with generative AI to be more capable, conversational and agentic than the previous version.

The development of Alexa+ was plagued by delays, reportedly due to it hallucinating or giving wrong information on test questions. Its unveiling came about a year and a half after Amazon first announced it was going to infuse AI into Alexa.

PYMNTS reported at the time that Amazon’s upgrade of Alexa aligned closely with trends identified in the 2023 PYMNTS Intelligence report “How Consumers Want to Live in the Voice Economy,” which predicted voice technology‘s potential to transform consumers’ daily tasks.

It was reported in March 2025 that after launching Alexa+, Amazon was preparing to release a “constellation” of AI-powered devices.

“You can imagine … a constellation of devices that has to come together to make it a better experience,” Panos Paney, head of Amazon’s devices and services business, told CNN in February 2025.

In September 2025, Amazon unveiled the next generation of several of its devices, including Echo, Fire TVand Ring, that incorporate the company’s AI assistant.

The PYMNTS Intelligence report “AI Becomes a Daily Habit: The Consumer Shift From Trying Tools to Living With Them” found that 54% of U.S. adults now use AI for personal tasks and that the average user relies on two or three different AI tools.

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