Recruiting and recruiting 27%, Amazon enters the smart home field
On September 25, according to the Reuters website, in the next five years, Amazon will increase the number of employees in a secret hardware department in Silicon Valley by at least 27% to enter the smart home field.
This plan demonstrates the intent of Amazon CEO Jeff Bezos to strengthen the hardware business strategy. The plan's disclosure comes as its Fire smartphone sales are tepid, and some investors criticize Amazon for over-investing in pilot projects.
According to an agreement signed by Amazon in June with California, by 2019, full-time employees of Amazon's Lab126 division will grow to at least 3,757. According to the agreement, Amazon will be able to enjoy a tax benefit of 1.2 million US dollars (about 7.38 million yuan). The agreement also shows that Amazon will invest $55 million (approximately RMB 302.31 million) in Lab126's divisions in Sunnyvale and Cupertino.
It is reported that two unnamed sources of the Lab126 business recently revealed that when the Lab126 recruits for the smart home equipment, the smart home may become a new battleground for Amazon to compete with Google and Apple.
Technology companies see smart dishwashers, intelligent temperature control devices, etc. as a way to stimulate demand for products and services. But skeptics point out that for most consumers, the price of such equipment is too high and will take years to be accepted by mainstream consumers.
One of the above sources said that Amazon is testing a simple WiFi device that can be placed in a kitchen or storage room where users can order detergents at the push of a button. Another person said that Lab126 is also interested in wearable devices. But both of them stressed that Amazon may not launch such products in the market.
These rumors unveiled the corner of the yarn on the head of Lab126. Amazon did not disclose any information related to the Lab126 business and employees. Amazon said in a statement that Lab126's development is "incredibly fast" and noted that the company will launch several products this year, including Fire phones, Fire set-top boxes, and several new tablets and e-readers. . Amazon spokesman Kinley Pearsall said, "We will continue to invent and develop new features, services and products to support innovation. Lab126 is also growing very fast."
Whether or not Amazon will eventually sell smart homes and wearables, these experiments reveal Bezos' greater ambitions. Lab126 is becoming more and more important for Amazon to leverage its devices to make it an integral part of the lives of more than 240 million active users.
Bezos is deeply involved in the Lab126 project, including the first generation of Kindle electronics and the Fire phone in 2007. The Firemobile, which was developed by Lab126 over a four-year period, was released this summer, but sales were weak. Earlier this month, Amazon partnered with AT&T to cut the 2-year contract price of the Fire phone to 99 cents (about RMB 6.09).
Since the beginning of this year, Amazon's share price has fallen by nearly 20%.
Other tech giants are also trying to get involved in the smart home space. In January, Google spent $3.2 billion (about RMB 19.7 billion) on the acquisition of smart temperature control equipment maker Nest Labs. In June, Apple announced the smart home framework HomeKit.
One of the above sources said that Amazon envisages that deploying a networked sensor at home can remind users in advance of the need to replace the air conditioner filter or to maintain the washing machine.
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