According to a report by Distimo the Amazon AppStore is gaining ground on the Android Market and proving to be more profitable for developers. The Android Market still has around 14 times as many apps as the AppStore, but the report found that in December and January new apps in the Market were only 5 times greater than new apps in the AppStore. It also found that the Amazon AppStore grew by a factor of 14 between October and December of last year, no doubt thanks to it being the exclusive app avenue for the Kindle Fire
. If growth continues at this pace the AppStore could be close to the Market numbers in just a short year.
Sheer numbers don't tell the whole story though, as revenue in the AppStore is looking pretty nice for developers. Distimo found that there were 110 apps in the Market and AppStore earning $200 per day, and that 28% of the total income for these apps were generated in the AppStore. It also noted that 42 of those 110 apps made more money in the AppStore than they did in the Android Market. Paid apps make up 65% of the AppStore, whereas they account for just 32-28% of the Market. Even though there are more paid apps in the AppStore, prices are 40% less than in the Market thanks in part to Amazon setting the pricing and offering frequent discounts. These lower prices are more consumer-friendly, and increase the chance that a user will purchase an app versus using the free or lite versions, or finding a free alternative.
Overall Amazon has done a good job in luring developers by making it easier to publish apps in the AppStore and setting pricing so that the developer is more likely to sell their app. While continued growth at this pace is unlikely, we'll definitely be keeping our eye on this situation.