Sunday, April 1, 2012

Amazon's Appstore is Proving to Be a Success

According to data that was recently released by Flurry, an analysis firm, Amazon made a smart decision to open its own app store because it is bringing in more Android app revenues than Google.

Flurry decided to look at a “basket of top apps” that were available at Apple’s App Store, the Android Market/Google Play Store and Amazon’s Appstore over 45 days during January and February this year. It found that for every dollar that was spent on iOS apps, 89 cents was spent on apps in the Amazon Appstore and only 23 cents was spent on apps from the Google Play app store.

"Amazon's bet to fork Android in order to put consumers into their own shopping experience on Kindle Fire appears to be paying off," Flurry said in a blog post. "Showing its commerce strength, Amazon already delivers more than three times the revenue in its app store compared to what Google generates for developers."

"For some possible insight, let's consider the DNA of each company. Apple runs the highest revenue-per-square foot generating retail store on the planet as well as the successful iTunes store," it said. "Amazon, who invented the one-click purchase, perfected online shopping with data, efficiency and customer service. Google's strength is in scalable online search engine and advertising technology. Running a store, retail or digital, has not been Google's traditional core competency."

It will be interesting to see if Amazon continues to be successful in the Android app sales business. Right now, it sure looks like they have a leg up on Google, and it will stay that way for awhile.

Sources: PCMag - Study: Amazon Trouncing Google in Android App Revenue and Flurry Blog - For Generating App Revenue, Amazon Shows Google How to Play

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