As per reports, Amazon is planning to re-enter the market of smartphones by going up against brands such as Samsung and Apple.
The firm first tried smartphones by launching the Fire Phone, which led to a loss of $170 million in 2014. This comeback now can change the whole scenario in the world of smartphones. According to the reports from Reuters, the project is codenamed by “Transformer”. Moreover, the device may come with the inbuilt Alexa, Amazon’s voice assistant.
The device can also serve as a personalised mobile tool that connects users to Amazon services like Prime Video and Amazon Music.
Founder of Amazon, Jeff Bezos, said to have had a vision of a voice-driven computing assistant similar to the voice-controlled computer in the sci-fi series “Star Trek”.
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How Amazon’s Smartphone Could Function and Stand Out
The project is led by ZeroOne. It is a group within the Amazon Devices division that focuses on making new gadgets. Moreover, the team is led by Microsoft executive J Allard. He is discovering both a simpler and a traditional device, aiming at reducing screen time.
The primary point of the device is likely to be AI integration. It can reduce reliance on traditional app stores by allowing voice-driven interactions and access to Amazon services.
However, there are no official statements by the firm about the project.
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Amazon’s Big Plan to Compete with Apple’s Ecosystem
As per India Today, the Amazon smartphone can make a perfect gateway to bring more users to the company’s several services. They can watch movies on Prime Video, buy products from the Amazon website, and read books via the Kindle store.
All these could allow Amazon to take on Apple’s ecosystem. Although it will not be easy for the firm to pass Apple’s ecosystem, as they have so many users around the globe.
What Went Wrong with Amazon’s Fire Phone Attempt
In 2014, Amazon tried to enter the field of smartphones by launching the Fire Phone. This device was developed under Jeff Bezos vision. The device ran on FireOS, which was a customized version of Android without Google services like maps or the Play Store. It was one of the primary reasons for the device’s failure that the firm lacked an app inventory on the Google Play Store or even the Apple App Store.
The device came into the market with a 3D camera setup that could make a dynamic effect on the screen based on how you looked at it.
However, Amazon even lowered its price from $649 unlocked to $159 to gain more sales. Later, the device was discontinued after 14 months of its launch. The firm was in a loss of around $170 million because of the device.
In addition, the plan of re-entering the market comes at a tough time. As the prices of memory have led to a slowdown in smartphone shipments. As per reports, the shipments may decline by 13 percent globally in 2026.
Francisco Jeronimo Reacts on Amazon
Francisco Jernoimo is the vice president of data and analytics at International Data Corporation. As per Reuters, he wrote in a research note on Friday that the firm “brings together a powerful services ecosystem spanning commerce, content, cloud, and an existing AI foundation with Alexa, along with deep expertise in data-driven customer engagement.”
He also wrote: “Amazon could have an opportunity.” But, “the window of opportunity is tiny,” he wrote. “Every major player is moving in the same direction.”