Amazon Devices Chief Panos Panay Says New Smartphone Not a Priority, Cites Fire Phone Lesson

Context In March, Reuters reported that Amazon explored a new smartphone that would use Alexa as its operating system, aiming to drive more users toward its AI and services. Sources described the project, internally called Transformer, as still tentative and subject to cancellation. Amazon declined to comment on the report at the time. The story resurfaced when the Financial Times interviewed Panos Panay, who leads Amazon’s devices and services division.

Key Facts Panay told the FT that creating a new phone is not Amazon’s goal and dismissed the speculation as unfounded. He noted that the company already tried selling a smartphone in 2014 with the Fire Phone, which Amazon discontinued after about 12 months due to weak sales. Panay added that there is no clear path that makes sense for a phone right now, given the many other form factors demanding attention. He said Amazon will make a big bet only when it needs to, and currently it does not need to release a phone.

What It Means The statement signals that Amazon will prioritize other hardware categories, such as smart speakers, earbuds, and home‑security devices, over a handheld device. By referencing the Fire Phone’s short lifespan, Panay underscores a reluctance to repeat a costly misstep. Investors and analysts can interpret the comment as a sign that Amazon’s near‑term hardware roadmap will focus on expanding its Alexa ecosystem rather than re‑entering the competitive smartphone market. Watch for Amazon’s next moves in wearable and home‑AI devices as it shifts focus away from smartphones.