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Bargain Prices
"Due to the way Amazon handles the pricing of applications, the [cost to users] of the same apps can be very different in these two stores," Koekkoek wrote in Distimo's new report. "[Price] reductions are generally larger in the Amazon Appstore than in the Google Android Market."
For example, the Monopoly app for the Android platform, which was priced at just $0.99 under a limited time offer from the Amazon Appstore, cost $4.99 at Google's Android Market. What's more, Amazon offered Splashtop Remote Desktop for free in a one-day special while guarantying minimum royalties per sold app to developers -- even as the same app was priced at $4.99 in Google's Android Market.
Beyond the success of the Kindle Fire, Amazon's mobile app pricing may have played an important role in enabling Amazon's download volumes to almost quadruple during November in comparison with the prior month and then jump by more than fourteen times in December. By January, Amazon was generating 28 percent of total sales for the top 110 apps available from both the Amazon Appstore and Android Market.
"Since the Amazon Appstore is available on only a limited number of devices compared to the Google Android Market, it shows the potential of the Amazon Appstore for developers," Koekkoek wrote.
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