Get All Access for $5/mo

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

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

Staff Writer. Frequently covers digital media.

Geoff Weiss is a staff writer at Entrepreneur.com who frequently covers digital media.

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

Editor's Pick

Growing a Business

You Need an Advisory Team More Than Ever. Here's Why — and How to Run One Effectively.

The right advice, particularly in a company's early stages, can be an existential matter: how to surround yourself with the right minds.

Growing a Business

4 Financial Blind Spots That Could Be Preventing You From Making More Money

If you're ready to grow but feel stagnated and not sure why, check out these common money secrets where revenue is hiding.

Business News

Chipotle CEO Addresses Backlash Over Portion Sizes: 'There Was Never a Directive to Provide Less'

The fast-casual chain has been under fire about inconsistent portion sizes.

Starting a Business

NFL Great Stefon Diggs Has a Plan to Change the Game in Fashion

Four-time Pro Bowl wide receiver Stefon Diggs has a burning passion for football and fashion. Here's his best advice for pursuing your dreams.

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.