Web Monkey cites a job opening from Lab126, the division of Amazon that develops the Kindle, which indicates the company is looking for somebody to develop “an innovative embedded web browser” for a consumer product. Given that the current browser for the Kindle is definitely lacking, it's not exactly a big jump to assume Amazon is looking to develop something a little more up to date to allow the Kindle to better compete with the competition.
According to the posting, the role will involve "designing and implementing new features on the browser and supporting and maintaining the implementations of the current browser."
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