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Samsung tipped to launch ‘Galaxy’ tablet in Berlin

by Sarah Griffiths on 11 August 2010, 15:26

Tags: Samsung (005935.KS), Amazon (NASDAQ:AMZN)

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Amazon planning hardware push?

Amazon, maker of the Kindle e-reader is thought to be interested in diversifying its hardware offering in a bid to push more products such as its music and film downloads.

According to The New York Times, Amazon is developing numerous products, with a source telling the paper the Kindle was only intended to be its first offering. 

Intriguingly Amazon has a secret division in charge of developing hardware prototypes, called Lab 126, which is hiring a bunch of new engineers with almost 80 job vacancies, perhaps indicating it is stepping up its inventing efforts. It is believed some of the new employees will develop the next generation Kindle, perhaps boasting a touch or colour screen

The newspaper's source reportedly said: "Jeff's [Jess Bezos, founder of Amazon] original goal for the lab was to build a range of other devices. There was talk of music players and other electronics."

While Amazon's significant share of the music download market may hint at a standard MP3 player, a multimedia option such as a tablet could be more in vogue, with some commentators even tipping an Amazon TV.

TechCrunch said a set-top box allowing Amazon film and music downloads would mimic the Kindle strategy to make the e-tailer's content even more mainstream and compete with Google's highly anticipated Google TV, with Apple rumoured to be revamping its Apple TV too.

The New York Times' source also revealed Amazon has not ruled out developing a phone, although experts assume it would not compete with today's smart offerings, but be more of a cheap tool to consume Amazon goods, like the Kindle.

Amazon execs have reportedly been annoyed other companies are pushing into the digital content space, while a source ominously told The New York Times that Amazon's execs are ‘prepared to do whatever it takes' so Amazon can be top of the digital content pile.

Amazon currently has a thriving Kindle e-book store with a recently launched UK site, going head-to-head with Apple's iBookstore. However the competition will intensity further with Google's library due in the next few months.



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