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Amazon is reportedly planning to enter the smartphone space — again — hoping to take on rival tech giants like Apple, Google, and Samsung among others.According to Reuters, the company is working on a new smartphone internally, reviving its hardware ambitions more than a decade after the failure of its Fire Phone.The project, codenamed “Transformer”, is being developed within Amazon’s devices and services unit and is still at an early stage, the report said. Details such as pricing, launch timeline and financial commitment remain unclear, and sources cautioned the effort could be scrapped if strategy shifts.Reuters noted that the device is being positioned as a personalised, AI-driven mobile hub "that can sync with home voice assistant Alexa and serve as a conduit to Amazon customers throughout the day". It is expected to make it easier for users to shop on Amazon, stream Prime Video, listen to Amazon Music and access partner services like food delivery throughout the day.A key focus, according to the report, is embedding artificial intelligence into the device, potentially reducing reliance on traditional app stores by enabling more direct, voice- or AI-led interactions."Alexa would likely be a core feature but not necessarily the primary operating system of the phone," Reuters added citing sources.The move is part of Amazon’s broader push to strengthen its AI play in consumer services, an area where rivals such as Apple, Google and Meta Platforms are already advancing with AI-powered devices. OpenAI is also working on hardware prototypes with former Apple designer Jony Ive.Amazon’s earlier attempt at smartphones — the Fire Phone launched in 2014 under founder Jeff Bezos — was discontinued within 14 months after weak demand, forcing the company to cut prices sharply and take a $170 million hit on unsold inventory.The new effort is being led by a team called ZeroOne, headed by former Microsoft executive J Allard, and falls under the devices unit overseen by Panos Panay, Reuters said. The team has been tasked with building “breakthrough” hardware.Sources told Reuters that Amazon is exploring both a conventional smartphone and a pared-down “dumbphone” with limited features, potentially targeting users looking to cut screen time. One reference point for the device is the minimalist Light Phone.The potential launch also comes amid a weakening smartphone market, with global shipments expected to fall 13% in 2026 due to rising component costs, according to International Data Corporation.