Amazon exec: new smartphone is not the goal
▼ Summary
– Reuters reported in March that Amazon was developing a new smartphone, codenamed Transformer, with Alexa as an operating system.
– Amazon’s head of devices, Panos Panay, stated in a Financial Times interview that building a new phone is not Amazon’s goal.
– Amazon previously attempted a smartphone with the Fire Phone in 2014, but discontinued it after a year due to poor sales.
– The Transformer project could still be canceled, and Amazon declined to comment on the initial report.
– Panay’s statement downplays rumors of a new Fire Phone, suggesting no clear path for such a product.
In March, reports surfaced that Amazon was quietly working on a new smartphone, a project internally dubbed Transformer. According to Reuters, the device would lean heavily on Alexa as its core operating system, aiming to drive users deeper into Amazon’s AI ecosystem and suite of services. While sources stressed the project could still be scrapped, Amazon declined to comment at the time.
Now, Amazon’s head of devices and services, Panos Panay, is pushing back against those rumors. In an interview published today by the Financial Times, Panay stated plainly that building a new smartphone is not Amazon’s goal.
The company’s last foray into the phone market ended badly. In 2014, Amazon launched the Fire Phone, only to discontinue it roughly a year later after it bombed with consumers. The device was criticized for its gimmicky features, limited app ecosystem, and high price, leading to poor sales and a massive write-down.
Panay’s comments suggest Amazon has no current ambition to repeat that failure. While he didn’t outright deny the existence of any internal experiments, he made it clear that no clear path forward for a smartphone makes sense for the company right now. Instead, Amazon appears focused on integrating Alexa into existing devices and expanding its AI capabilities through other hardware, like smart speakers, displays, and third-party partnerships.
For now, the Transformer project, if it ever existed, seems to have no future as a consumer product. Amazon’s strategy remains centered on making Alexa ubiquitous across platforms, not building its own phone to host it.
(Source: Ars Technica)
