Amazon Amps Up Apps Rivalry

Friday Oct 8th 2010 by Staff

The online retailer reportedly plans to get into the apps business.

Wall Street Journal: Amazon already competes with Apple's iTunes for sales of music, videos and ebooks. Now the online retailer reportedly plans to compete with the App Store as well by opening up new place to buy online applications. However, Amazon's app store will sell apps for Android, which also puts it into direct competition with Google.

Amazon plans to charge developers a 30 percent commission on all downloads, and developers must agree not to offer their apps cheaper someplace else.

"New people will continue to introduce app stores—carrier telcos, device manufacturers, e-commerce sites," said Gartner's Ray Valdez. "But it will be like people having a fax machine—it is not a game changer, but just part of doing business."

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