Amazon’s rumored AI phone might be dead on arrival, says analyst

Recent leaks point to Amazon gearing up for a return to smartphones with an AI-focused device. However, analysts aren’t convinced the timing makes sense.

According to a new report, industry experts believe this could be “the worst possible time” for Amazon to re-enter the smartphone market, even after adding AI into the mix.

Why an Amazon AI phone doesn’t make sense right now

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One of the biggest concerns outlined by the report is the broader state of the smartphone industry. Due to the rising cost of components and the ongoing memory shortage, the market is expected to fall by around 13% in 2026. So Amazon wouldn’t just be entering a competitive space; it would also be entering a market that’s in decline.

But how does one compete with Samsung and Apple?

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