Amazon is gearing up for a new foray into the smartphone market, emphasizing artificial intelligence as a core feature. This effort comes a dozen years after the company's initial, ultimately unsuccessful venture into mobile devices. According to a report from Reuters, the new smartphone, codenamed 'Transformer,' is being developed by the ZeroOne team, a relatively new unit within Amazon's device division, led by James Allard, who is known for his work with Microsoft's Xbox and Zune.

The upcoming device is expected to heavily incorporate Amazon's digital assistant, Alexa, with an array of AI capabilities aimed at providing a more 'intelligent' user experience. In a departure from traditional app stores, the new design may prioritize interactive experiences via AI, allowing users to engage vocally or through automated methods rather than simply downloading apps. This innovative approach could redefine how users interact with their smartphones.

Additionally, the device is anticipated to integrate services such as shopping directly from Amazon and accessing Prime Video, further enhancing its appeal. The new strategy highlights Amazon's commitment to leveraging artificial intelligence and digital services to create a unique user experience, indicating a significant shift in consumer expectations for smartphones and the role that AI will play in this market.