The NY Times is reporting that Amazon's hardware division isn't just working on the latest and greatest Kindle. They've looked to expand into other gadgets, as well—including an iPhone competitor.
The mobile project was determined to be out of Amazon's scope, according to the source, though it hasn't been "definitively rejected" as a future project. Other projects originating in Amazon's Lab 126, above and beyond the oft-rumored touchscreen Kindle, have been considered as well:
"Jeff's original goal for the lab was to build a range of other devices," said one person, referring to Jeff Bezos, Amazon's founder and chief executive. "There was talk of music players and other electronics."
Amazon's already expanded into the business of selling branded cables recently—not hardware, but a step towards expanding their offerings.
There aren't any more details about what Amazon's got in the pipeline that will definitely reach consumers, but strategically it makes sense: the more hardware manufacturers like Apple encroach on Amazon's hardware space, the more Amazon will push into hardware. Everything that rises must converge. [NY Times]