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Summary:

When the T-Mobile G1 launches on Oct. 22, people will be able to browse and buy applications from the phone within the Android Market. Goog…

imageWhen the T-Mobile G1 launches on Oct. 22, people will be able to browse and buy applications from the phone within the Android Market. Google’s (NSDQ: GOOG) vision for this — although similar to Apple’s App Store which saw tremendous success soon after launching this summer — will not be the same, for better or for worse. Of course, this is important to get absolutely right. As Google Android developer Andy Rubin explained today: the G1 is “future-proof.” Because of its openness and ability to run third-party apps, it won’t become obsolete, like other phones can. That is, unless they blotch the user experience on Android Market…

Here’s some points on how Android Market will be the same or different as the iPhone App store:

No approval process: Google will have no approval process for the software, meaning it’s an open content distribution system, reports Gizmodo. Currently, Apple regulates what apps can be approved for the App store. In Android Market, the process will be much more open, however, that can be a double-edge sword since there’s no telling what people have created.

All Apps are free: Starting Oct. 22, all applications will be free, making it a very easy process. Any developer can submit an app, and there doesn’t have to be a business relationship between Google and a developer. Plus, the consumer won’t have to pay anything. Of course, developers who spend a lot of time on building an app may not want to provide their work for free, and there could always be some bad apps that provide a poor experience. It’s not stopping mobile game publisher Namco Networks from offering PAC-MAN at no charge, even though the game usually retails for $9.99. Glu Mobile (NSDQ: GLUU) also said it will be offering an original game called Bonsai Blast for free on Android Market.

Apps can run in the Background: My colleague Joe Weisenthal, who is at the New York press conference, dug up this one. He said applications like the ‘carbon measurement’ app, which tracks how far you’ve driven, couldn’t work on an iPhone because it would have to be open while you were using it, whereas it can run in the background on Android.

Revenue Sharing: Joe also said when Android Market does allow apps to be sold, Google won’t take a cut of revenues, unlike Apple (NSDQ: AAPL). It will purely be an arrangement between the carrier and the mobile app developer. It is unknown what the revenue-share agreement will be between the carrier and a developer. This is a smart move. If applications can be sold through the carrier and appear on a phone bill, rather than being charged to a credit card, none of the parties involved will have to pay the credit card companies. It’s unlikely Google won’t get a take somewhere, such as advertising on its own services, or others.

No Web or Desktop Presence: The Android Market will have no desktop or online presence, where users can quickly look through the market to see if there’s any applications they want to download. Apple also sells apps through iTunes.

  1. In regards to the billing:

    "It will purely be an arrangement between the carrier and the mobile app developer. It is unknown what the revenue-share agreement will be between the carrier and a developer."

    Do you realize that the carrier cut is typically 45% or more of a transaction? What's more, the terms are typically net 60 to 90 days. Also, if you sell in multiple territories, then you have to deal with multiple carriers.

    This seems like a mistake to me.

    Comments?

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  2. Hey William, thanks for the comment. So, everything is unknown at this point…we have no idea how much the carrier (in this circumstance, T-Mobile) will ask for in a revenue split. However, if their current devPartner Community is any judge, they are allowing developers to keep up to 70 percent of the revenues, depending on customer service and bandwidth conditions. Right now, it doesn't include Android, but I suppose that's because Android has it's own market. You can read about the details here: http://www.moconews.net/entry/419-ctia-t-mobile-usa-outlines-details-of-its-developer-program-mum-on-its-
    And, yes, that's just for T-Mobile. Obviously, it's Android's intent to be on as many carriers as possible.
    Hope that helps,
    Tricia

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  3. Looks more like a 50/50 split:

    "A baseline for the developer’s initial cut is 50 percent, and then based on certain perimeters, it may increase to 70 percent (remember, the App store currently has an across the board 70/30 split with developers). First off, the revenue split is determined by the amount of bandwidth the applications use, but developers can boost up their percentage by abiding to a couple of rules. The first is by providing customer care through at least two access points, such as a phone number and email. Another way is by supporting at least 10 T-Mobile devices, two of which being the most popular in the network."

    You'll still have the problem of dealing with multiple carriers across different territories.

    Not having paid-apps from day one is also a issue.

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  4. Tricia,

    Android's open approval process, and focus on free applications, will help raise the visibility of the free app model, which GetJar has always supported. We applaud Android's approach, because it will draw more creativity into mobile development.

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  5. My blog on the billing issue: http://tinyurl.com/3f7wrl

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  6. Recently, my friend and I developed a G1 application as a required senior project at Cal Poly Pomona called 'mTools.' I would appreciate it greatly if you can check out this website:
    mhome.guiang.net/cpp
    Mtools is -
    -Store/Manage files on your cell phone
    -Upload/download files
    -Synchronize files
    -Share files
    -Backup files

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  7. They are going to have a hard time competing if they don't open one up soon.

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  8. Without an app store its going to be difficult for any phone to take share away from the iphone.

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  9. I dont think it's going to be that difficult with the techonology they have in place

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