14 DAY TRIAL // One of the hottest rumors in the mobile world right now is that Amazon is looking to launch its own App Store for Android devices. It seems like a bold move and one that is destined to fail until you factor in the also-rumored Android-powered tablet that Amazon is said to be building as well.
Earlier today, TechCrunch ran a number of stories citing unrevealed sources claiming that an Amazon App Store is coming, possibly very soon. The sources, presumably developers, have apparently signed a NDA.
Some details on the app store have emerged, like the pricing structure and Amazon's power over what apps get in or not. You can read more about that here.
On the face of it, it would be a very bold move from Amazon. Google provides the official Android Marketplace and, although not as popular or as big as the Apple App Store, it has a significant number of apps and comes pre-installed on every Android device.
Challenging Google's dominance in the space is not for the faint of heart, even with a pseudo-open system like Android which allows manufacturers to bundle any software they want with devices and allows third-parties to build pretty much any service they can think of.
Amazon is not in a bad position and it has the resources and the know-how to do it, but it would be a daunting task even for the e-commerce mammoth especially since some of the terms are actually more restrictive for developers than in the Android Marketplace.
However, another rumor says that Amazon is also looking to build a tablet, powered by Android. This is not the first time such a rumor has surfaced. The company has been very successful in the hardware business with its Kindle devices.
However, the iPad changed the game and the e-readers are clearly under threat by the Apple device and the myriad of tablets now coming from all manufacturers.
While the Kindle is still better as an e-reader, it's a single-purpose device and it is most likely losing sales to tablets. With Amazon building its own tablet, it can offset some of its losses.
The Kindle has never been about the device for Amazon, it was just a means to drive up e-book sales in its Kindle Store. The e-book store is available for the iPad and the iPhone, other mobile devices as well as for PCs and Macs.
An Amazon tablet would allow it to compete directly with the iPad, by giving potential Kindle users, who may want a more multi-purpose device, an alternative, but it would also open the doors to a number of new possibilities.
One that is looking very likely is the Amazon App Store. If Amazon can see the kind of sales it gets for the Kindle for its tablet as well, it would give its App Store a significant user-base.
Its billing system, which is much more popular and established than Google Checkout would also be an advantage. All we have for now are rumors and speculation, but it all adds up on paper. You can expect some interesting announcements in the not so distant future from Amazon.