Report: Amazon doubling down on hardware with investments in Lab126 hardware division

According to a new report from Reuters, Amazon (NASDAQ: AMZN) plans to increase its investment in the development of new gadgets, and is focusing on devices such as wearables and one-button ordering machines.

Reuters cited Amazon filings with the U.S. government as well as unnamed people familiar with the topic. According to Reuters' report, Amazon plans to increase the number of employees in its Lab126 division by at least 27 percent to 3,757 people by 2019. The company also will invest $55 million in Lab126's operations in Sunnyvale and Cupertino, California.

According to the report, Amazon is researching wearable devices as well as devices that would make it easier for customers to order products from Amazon. For example, a Wi-Fi device the company is testing would allow customers to quickly and easily order new household goods when they run out.

However, the report cautioned that Amazon may not commercially release any of the products it is currently working on.

The report is notable in light of the relatively lukewarm reception the company received with the release of its Fire phone, Amazon's long-rumored smartphone. Amazon has also produced a set-top box on its Kindle tablets through its Lab126 hardware division. Article

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