📺 Stream EntrepreneurTV for Free 📺

Amazon Is Bulking Up Its Secretive Hardware Lab in Pursuit of a Connected Home On the heels of a fizzling response to its Fire Phone, Amazon is reportedly foraying further into hardware by increasing headcount at its top-secret Lab126 by roughly 27 percent.

By Geoff Weiss

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Amazon isn't letting the stalled debut of its first-ever smartphone, the Amazon Fire Phone, deter further forays into the alluring hardware realm.

The company will boost staffing by roughly 27 percent at Lab126, its secretive hardware division, which developed the Fire Phone as well as Amazon's ever-growing line of Kindles.

New employees will be tasked with developing smart home solutions, according to Reuters, which uncovered the hires via a government document stating that, in turn, California would give Amazon $1.2 million in tax breaks.

Related: Amazon Scoops Up the '.Buy' Domain for $4.6 Million

By 2019, Amazon will employ 3,757 people at and allocate $55 million towards Lab126, which many investors have accused of spending exorbitantly on highly experimental ventures. And indeed, notes Reuters, it is unclear whether any of the items being worked on will ever come to fruition.

Among those rumored to be in development are wearables and "a simple Wi-Fi device that could be placed in the kitchen or a closet, allowing customers to order products like detergent by pressing a button."

The revelations illustrate that Amazon is looking to keep step with Google and Apple, each of whom are making stated plays in the domain of smart home tech. Google, for instance, acquired smart thermostat maker Nest Labs for $3.2 billion in January, while Apple added HomeKit, a home automation feature, to its latest version of iOS.

Related: Data Driven: What Amazon's Jeff Bezos Taught Me About Running a Company

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

The Met Museum, OpenAI Created an AI Chatbot With the Persona of a 1930s Socialite for a New Exhibit

The finale of the Costume Institute's latest fashion exhibit features a wedding dress worn 94 years ago by New York socialite Natalie Potter and an AI chatbot with her vibe.

Business News

Kevin O'Leary Says This Is a 'Huge Red Flag' When He's Looking at Resumes

The "Shark Tank" star took to X to share his opinions on job hopping — and how long you should really stay in a job.

Marketing

4 Things Ecommerce Startups Need to Be Careful About When Running A/B Tests

A/B testing is a powerful tool, but you should be aware of these aspects that people often overlook.

Marketing

10 Ways to Use AI for Hyper-Personalized Marketing

The future of marketing is not just about privacy and personalization. It's predictive, proactive and powered by AI.

Business News

'An Obvious Move': Elon Musk Suggests Warren Buffett Should Make This Investment Move Next

Berkshire Hathaway held its Annual Shareholder meeting over the weekend.