Apple-Amazon War Heats Up

The long-simmering war between Amazon and Apple is starting to boil over.

The two technology giants are going head to head in an increasing number of areas as they move to consolidate their positions as control points to consumers' digital lives. And their battle stands out from other tech rivalries because of the combatants' similar playbooks—from the tight control they exert over software to their secretive corporate cultures to the breadth of their customer data. The latest escalation came earlier this month, when it became clear that Amazon is testing its own smartphone, which would be a direct competitor to Apple's iPhone. The companies already battle one another in tablets and digital music and video, among other businesses. Behind the scenes, a team of Amazon engineers, stationed near Apple's headquarters, is toiling away to make the software that runs the Kindle Fire tablet more powerful, to better take on Apple's iPad. Their efforts include improving the graphics performance, the hardware and software integration and the user interface, which some consumers say still reminds them of an e-book reader, according to a person briefed on the project.