Amazon to Compete with Application Stores from Google and Apple

Added by Gary Dunn on October 11, 2010

Speculations are high that Amazon.com Inc. might open a store for applications that are developed and run on the Android technology for mobile phones from Google Inc.

This was reported by the Wall Street Journal on Thursday. But Amazon and Google refused to make any comment on this.

Google called it a rumor and speculation, while Amazon said that nothing has been announced yet.

This offering from Amazon is expected to compete with application stores from Google and Apple Inc. The market for this is huge.

Application stores from Apple sell over 270,000 applications. Application stores from Google under the Android Marketplace sell over 80,000 applications.

Google’s Android platform has gained substantial popularity as a technology to be used for smartphones. This has begun to challenge and compete with Apple for share of customers.

Android at present is widely used on several mobile devices including Droid from Motorola and Galaxy S from Samsung.

Amazon’s planned revenue sharing model also seems to be lucrative and competitive. Similar to the model by which Apple shares revenue with its application developers, Amazon is sharing 70 percent of its sales revenue with its application developers.

This was reported by the Wall Street Journal as was presented in a document from Amazon for the developers.