Amazon plans smartphone comeback with 'Transformer' AI project

Amazon is orchestrating a return to the smartphone market over a decade after the commercial failure of its Fire Phone. The secret initiative, codenamed "Transformer," represents a bold attempt by founder Jeff Bezos to realise a long-held vision of ubiquitous, voice-driven computing.

Developed within the devices and services unit, the project aims to create a mobile device that serves as a constant conduit for Amazon’s ecosystem, seamlessly syncing with the Alexa voice assistant to assist customers throughout their daily routines.

Unlike traditional handsets, the "Transformer" project focuses on integrating artificial intelligence to eliminate the necessity of conventional app stores.

This approach seeks to provide a fluid experience where users can access Prime Video, Music, and shopping without the friction of downloading individual applications.

This strategy mirrors Bezos’ initial goals for the 2014 Fire Phone, which was overseen directly by the founder but scrapped after just fourteen months.

The original 2014 venture remains one of the company's most high-profile setbacks.

Amazon's initial entry included a camera-based shopping tool designed to identify products and place them directly into online carts.

The Fire OS lacked popular third-party applications and featured a complex 3D screen system that caused handsets to overheat frequently.

Despite being bundled with a free year of Prime, the device sold poorly, leading to a $170 million charge for unsold inventory.

Amazon now faces a challenging market where Apple and Samsung command 40 per cent of global sales amidst a significant industry decline.