Amazon is reportedly developing an AI-centric smartphone

Amazon is quietly developing a new smartphone called "Transformer" that would ditch traditional app stores entirely, relying instead on artificial intelligence to handle user requests, according to Reuters sources. The device aims to drive usage of Amazon's AI products and draws inspiration from the minimalist Light Phone, marking the company's return to mobile hardware more than a decade after its Fire Phone flopped spectacularly in 2014.

The timing seems curious given Amazon's ongoing struggles with its devices division, which has reportedly lost money for years as Alexa-powered gadgets failed to generate meaningful revenue. The new phone would likely center around "Alexa+," Amazon's subscription-based generative AI assistant.

Amazon faces an uphill battle against Apple and Samsung's market dominance, established app ecosystems, and devoted customer bases. Whether consumers will embrace an AI-first smartphone experience over familiar app-based interfaces remains an open question, especially given Amazon's track record in mobile hardware.