Boston, MA 09/24/2014 (wallstreetpr) – Amazon.com, Inc. (NASDAQ:AMZN) seeks to expand its secretive hardware unit to conduct tests on smart home devices.
Expansion Plans
According to a Reuters’ article, the company is planning to employ more people at its Silicon Valley-based hardware facility. The company has announced boosting workforce by as much as 27% within five years. Amazon carries out testing procedures on the various gadgets associated with the smart-home. The gadgets include the much-talked about one-button equipment to order supplies.
According to people having knowledge on the matter, the company’s Chief Executive Officer, Jeff Bezos, is on a spree to improve its hardware strategy. Amazon had developed its Kindle, as also the other consumer electronics devices, at the Lab126 unit. As of now, the U.S. No.1 online retailer has plans to double its units workforce, to at least 3,757 workers by 2019. The plan is supported by the government of California, which has agreed to provide the company a tax break of $1.2 million.
According to a post on the California governor’s website, Amazon.com, Inc. (NASDAQ:AMZN) is investing a sum of $55 million in the operations of Lab126 in Sunnyvale and Cupertino.
Criticism Around Amazon’s Efforts
Amazon’s expansion plan seeks to establish a stronger ground for the retailer against major rivals Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG). Nor did Amazon’s Fire smart phone did not receive much market share, nor did investors appreciate its experimental endeavors. However, Amazon did not shy from making the big move in spite of the company’s previous unwelcome attempts in the field of electronic products.
At present, Amazon.com, Inc. (NASDAQ:AMZN) is engaged in conducting tests on a wi-fi device that is designed to be placed in a closet or kitchen, so as to assist users to order products by simply pressing a button. However, skeptics fear that such devices, as “talking” dishwashers, will be too expensive to be affordable by most people. They believe that these devices will take too long before they even enter the mainstream market.
