Amazon App Store For Android

Yep, Amazon Launching Their Own App Store For Android Too.

No surprises here. Amazon, a retailer, is building a retail experience for apps. They are taking Android and throwing away Google’s app store and a few other things as well and making their own tablet while at it.

Maybe they’ll put Bing on it and Facebook too.

  • Kenny

    Google must be thrilled.

    I can see how the tablet and app store makes sense for Amazon, it's probably meant to be self-disrupting, the same way Netflix moved into on-demand video rentals. If the iPad takes off and everything is delivered through the Apps Store, Amazon will be completely shut out of books, musics, movies, tv shows, and software. I'm sure that's a nontrivial chunk of their bottom line right now.

  • dms

    The Amazon "tablet" rumor is a bit bizarre. Can't see what they have to gain. Android tablets will become a commodity in a year or two with low, low margins. Are they hoping for some sort lock-in to Amazon-DRM-ed apps and media?

  • Rhadamanthys

    Communiqué from Google: Everything is going as planned. Really it is. 2011 is going to be the year we make profits from Android.

  • kevin

    This does seem more like a defensive move than offensive. I wonder how much more profit Amazon can make off of a 30% cut than Apple or Google. Some questions:
    1. To compete with the other Android markets, what incentives are they going to provide to get exclusive apps? Will Amazon get into in-app advertising? Or are they competing by having mostly the same apps but just providing a "better" consumer experience (one-click, etc)?
    2. Will the average user find it "better" to have multiple app stores to search/buy rather than one?
    3. Will the Amazon tablet have Google's apps and the Google App Market pre-loaded? Will the Amazon tablet be locked down to just the Amazon app store?
    4. What monetized part of the Android platform will Google be able to hold onto? It's sure looking like none.

    • Gandhi

      Don't forget where Amazon makes most of its money. It is a retailer. Making its own Android-powered device means opening up another store front from where Amazon can sell you stuff. The device will probably be sold at a loss or breakeven. Amazon will probably just take stock Android, rip out Google Checkout and Google Market place (and whatever Google's version of book is ), and call it the Kindle Tablet or Slate, and call it a day by selling it for $249.

      • kevin

        That's precisely it; Amazon is a retailer, it expects to make good profit from retail. If its app store is breakeven, and the tablet is low-margin (is it???), then is this effort to get you to go there and entice you to buy something else (i.e., increase sales turnover)? Or is it primarily to give you one less reason from leaving Amazon altogether (assuming Google gets its media store going for Android)?

      • Gandhi

        Android is open source. The licensing fees kick in when you want to use the Google apps store. Amazon can rip out the Google apps store and pocket the 30%. There are plenty of apps stores for Android outside of Google's that Amazon can tap in to for apps.

        You are confusing Amazon's goals here. I doubt Amazon is going to introduce a watered-down iPad by using Android. More like a slightly more robust Kindle = focus on the book reader, stick in a Amazon store, and some light web browsing.

  • MattF

    My guess is that the Kindle was doing very nicely– until the iPad came out. Amazon wants to stay in the content-delivery business, and an Amazon-branded Android tablet is a straightforward way of doing that. If I was a potential tablet maker, I'd have to ask myself what, exactly, my product has to offer that Amazon won't be motivated to compete against, and at a significantly lower price.

    • kevin

      It's interesting that iPad (and iPhone) aren't sold directly through Amazon. (Amazon has iPad listings from third-party dealers. iPhone could also be an AT&T issue.)

      Apple has had iPad distribution opened to Best Buy, Target and its authorized resellers, and is supposedly talking to WalMart, but still no Amazon. Is Apple moving Amazon into the same not-so-favored category as Google?

      • famousringo

        All those other retailers you mentioned are more desirable because they have shelf space. Even better, some of them have demo table space where people can try out an iPad and see how it works. Listing the iPad on Amazon proper doesn't really increase the profile of the device.

      • kevin

        @famousringo: Somewhat but not exactly. Apple is now moving iPads through its largest distributors, who will make iPads available to authorized resellers. Those resellers include online companies like MacConnection and MacMall, though for now, one needs to call and can't order it online.

  • wilhelm reuch

    If the purpose of Android is simply to put some breaks on iOS then Google doesnt care about all these hijacked androids.

  • rd

    No it would be interesting if Amazon
    creates their own Ad network then
    Google will shit in their pants.

    I doubt Google can compete with Amazon in
    terms of Customer service, locking down developers
    in terms of undercutting the competition.

    So Amazon store will sell you kindle books, mp3 music,
    Android apps, even cloud storage. I guess Google is in
    big trouble.

  • kevin

    @Gandhi: I don't understand your response.

    1. You think Amazon can pocket 30% from its app store? Apple gets a 30% cut and "pockets" about 0-5%. It's break-even.
    2. Unless someone can sell a tablet for more than the iPad, I think it will be low profit margin. The new Kindles don't look like they generate much margin.
    3. It's not my rumor so I don't see how I'm confusing Amazon's goals, but why wouldn't a more robust Kindle tablet use Android? What do you think Amazon's goals are if the rumored Android tablet is correct?

    • Gandhi

      Amazon's goal is to sell you stuff from their online store. The Kindle is there for Amazon to see you e-books. With a Kindle Tablet, Amazon can now sell you music, movies, TV shows and games, in addition to e-books, from the Amazon store.

      You are confusing what you would like to use a tablet for, as opposed to what Amazon would like for you to use the tablet for. Obviously both goals have to overlap in order to have a successful product.

      Amazon adopting Android is no different than the telcos or cell phone hardware makers adopting Android. They have no in-house expertise to develop a touch computing device from the ground up, and off-the-shelf Android will do.

      • kevin

        My point was the online store for digital goods is very low margin/break even. How much profit does Amazon (or Apple) make on music, movies, TV shows, apps, ebooks? Isn't Amazon's margin less than it makes on other non-digital goods?

        You've twice said I was confusng something but I still don't know what. So yeah, Amazon can get me to their store on their tablet or via other Android tablets but the goods sold in the store are low-margin. Is the goal to get a good profit through high volume?

        If the pricing of the tablet itself is like the Kindle, then it is also low margin for Amazon … unless it is planning to become a streamlined, high volume, hardware device maker like Apple, rather than just a retailer. Which business does Amazon really want to be in? And if they choose to become a consumer electronics maker, do they put their retail business in some jeopardy? Note Apple does not directly sell iPad at Amazon still; could the Amazon tablet be its response to Apple's actions?

  • kevin

    Apple has authorized Amazon to start selling iPads directly, at least for the 32GB and 64GB Wifi only version. So, it looks like the delay was nothing more than the slowly-improving iPad supply problem.