Ending Soon! Save 33% on All Access

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

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.

Career

Is Consumer Services a Good Career Path for 2024? Here's the Verdict

Consumer services is a broad field with a variety of benefits and drawbacks. Here's what you should consider before choosing it as a career path.

Business News

'Creators Left So Much Money on the Table': Kickstarter's CEO Reveals the Story Behind the Company's Biggest Changes in 15 Years

In an interview with Entrepreneur, Kickstarter CEO Everette Taylor explains the decision-making behind the changes, how he approaches leading Kickstarter, and his advice for future CEOs.

Business Models

How to Become an AI-Centric Business (and Why It's Crucial for Long-Term Success)

Learn the essential steps to integrate AI at the core of your operations and stay competitive in an ever-evolving landscape.