Here’s What Google Can Learn From Amazon
Of all those in the Apple (NASDAQ:AAPL) aficionado club, developers are accused of being the biggest fanboys. Apple offers more than 550,000 apps in its store, while Google’s (NASDAQ:GOOG) Android platform has decidedly fewer at 400,000, while Microsoft (NASDAQ:MSFT) only has about 40,000.
Their devotion is not unwarranted, of course, as the monetary success of apps in the iOS market has repeatedly been proven to be higher than on any other platform. Now Amazon’s (NASDAQ:AMZN) decision to break away from Google Play and set up its own Amazon Appstore, despite sharing the Android platform, is proving to be a wise decision.
An analysis of in-app revenue generated by the same app across the three different platforms, conducted analytics firm Flurry, found Amazon was already beating Google. If an app was generating $1 for the developer in Apple’s iTunes App Store, it was bringing in 89 cents in the Amazon Appstore, and only 23 cents in Google Play. The research was done using revenue generated over a 45-day period by a number of apps, with an average of 11 million daily active users.
The biggest factor for Amazon was Business 101: making sure the customer has a way of paying you. Amazon picked up lessons from its own web store and from Apple’s idea of forcing the user to register a credit card when they sign up for an ID, different from the Google style that asks for payment details only while a paid app is being purchased.
To start downloading apps from Amazon, even a free one, a user needs to have an Amazon account with a credit card registered and 1-Click payment enabled. Google integrated Google Wallet and Google Checkout into Google Play in an effort to do the same, but hasn’t yet blown anyone away with the results.
Not only has Amazon given developers a different avenue that’s turning out to be more profitable, it may inspire other Android device makers such as Samsung to follow suit. What remains to e seen is whether anyone can give Apple a run for its money.