The Innovative hardware product testing is being ramped up by Amazon and the company has been working on their marketing strategies to enhance the purchase experience of their quarter billion customers, who use the Internet-connected devices for buying the company’s wares. According to the recent reports which had surfaced last week, the company is being expected to boost their staffing of the Silicon Valley hardware unit, Lab126. This boost is being expected to be around 27% over the next 5 years.At present the company is hoping to boost full-time payroll at the facility to at least 3,757 by 2019. In the 2013 full taxable year, Lab126 had nearly 3000 full-time employees.

Based on the fast growing Internet, the company is currently working on developing products which are basically smart home gadgets. According to some of the reports the company is expected to spend around US$55 million in the operations of Lab126. Contrary to reports, Amazon has declined to confirm any new pertaining to new product development or any plans for expansion. The Company had declined to give any comment on the agreement they have reached in California which give the company a tax break of $1.2 million. The information about the agreement has been posted on the official site of California’s governor.

According to Kinley Pearsall, the spokesperson for Amazon, the company policy doesn’t allow them to speak or give any comment on speculations or rumors.

Research Expansion:

This news about the expansion has indicated that the company is currently working on connected-home devices which can create a completely new market for competition with Apple and Google. The company is currently focusing on their operation in Lab126 and also working on their monetary strategies for IoT.

No longer vague:

Even though there has been no comment from Amazon pertaining to the operation at Lab126, the development team is moving at a fast pace and already introduced the new Fire Phone, the new Fire TV, new Kindle e-readers and new Fire tablets this year.

Based on the fact that Lab126 is growing incredibly fast, the company is expected to work on more innovative products, features, services and invent new things periodically.

IoT products:

According to reports, Amazon had always been working on minimizing the friction that is faced by the online shoppers. The company is expected to build expanded product connectivity around their main services.

According to Rossman, former Amazon exec and author, the company has put a moat around their main customer base. Basically the moat is connected to the prime service. The service which started as shipping program but later on changed into customer loyalty program. Currently it is form of a business model. The company has variety of components in their business model which makes the customer to trust and carry on with their purchase.

Customers need control:

The company is expected to evolve in their auction area. The company understands that for commodity products bidding on basket is more sensible then bidding on individual items. Internet business depends on the level of security hence it will be good to see how companies fight over to retain individuality.