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Amazon to expand in the hardware market?

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The New York Times has reported that online retail giant Amazon could soon be expanding its range of electronic gadgets following the reception that greeted the Kindle.

The NYT claims to have gotten its scoop by examining Amazon’s recruitment adverts, industry insiders and those with an intimate familiarity of the company’s dealings.

It is apparent that the personnel of Lab 126 – the department responsible for the creation of the Kindle – may have been appointed the duty of creating another device with the potential to be as successful as the e-reader. Lab 126’s recruitment adverts have mostly been for jobs directly related to manufacturing consumer electronics, including systems engineers, hardware engineers and supply chain managers. Whilst many of these positions relate to the Kindle’s further development, rumours abound that the tasks appointed to them will not stop there.

An unnamed source revealed to the New York Times that MP3 players have been green lit by the company, and a Smartphone has been mooted. Although Amazon feels that it may be overreaching itself with a mobile phone, the idea has yet to be completely ruled out. Given the difficulties encountered with making an impression on the hardware market, many analysts feel that this would be a brave move by Amazon, pointing out the failure of search giant Google will its ill-fated Nexus One Smartphone.

If Amazon releases a MP3 player on the market, it will mean that the firm will be fighting a battle with industry darlings Apple on two fronts, as it competes directly with the wildly successful iPod and iPad. The unceasing demand for such portable devices has in turn boosted the insurance industry, as more people take out iPod insurance policies, Blackberry insurance and general gadget insurance.

Industry analyst Jack Gold thinks that it would make some sense if Amazon were to market portable media devices if the aim was to drive sales of music and films through its website, similar to iTunes.

So far, Amazon has refused to make any comment on the speculation, and some have suggested that the firm is experiencing trouble recruiting the key personnel it needs.



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