More than a decade after the dismal Fire Phone, Amazon is making a second attempt at the smartphone market with a device codenamed Transformer, according to a Reuters report. The new device will feature Amazon's Alexa+ AI assistant and shopping as a major focus of the experience.
Details about the Transformer phone are slim, with no word on its cost, development budget, operating system, or launch date. An Amazon spokesperson declined to comment on the rumors, citing the company's policy of not commenting on speculation.
The Industry Context
Amazon's re-entry into the smartphone market comes at a challenging time, with the current economic environment and supply-chain issues making it more costly to develop and produce devices. The company will also face stiff competition from established players like Apple and Samsung, which have their own AI capabilities.
Francisco Jeronimo, vice president of data and analytics at IDC, questions the rationale behind Amazon's move, saying, "What can they bring to end users that is not already available from the likes of Apple or Samsung?" Jeronimo believes that even if Amazon started working on Transformer a year or so ago, the current economic environment would make the device much more costly than initially intended.
The AI Angle
Amazon's Alexa+ AI assistant is expected to play a key role in the Transformer phone, potentially eliminating the need for traditional app stores. This move is part of a broader trend in the tech industry, with companies like Google and OpenAI working on AI-powered chatbots that can complete tasks on behalf of users.
Carl Pei, CEO of Nothing, told WIRED last year that he believes future smartphones will have one app, "that will be the OS." Amazon's Transformer phone could be an attempt to explore this concept, with Alexa+ as the driving force behind the device.
Privacy Concerns
Amazon's checkered history in user privacy raises concerns about the potential risks of a new smartphone device. The company has been criticized for its handling of customer data, and its Ring cameras have created a suburban surveillance state. Alexander Gamero-Garrido, an assistant professor at the University of California, Davis, says that an Amazon smartphone would "significantly increase the scale of the potential privacy harms."
Gamero-Garrido believes that Amazon could use the Transformer phone as a data-gathering tool to build its advertising network and compete with the likes of Alphabet and Meta. This could be done through a Fire TV-like approach, where Amazon collects data from users and owns the operating system, even if the device is not manufactured by the company.
