Previously, we reported that Android was getting a new Amazon App store, and while that is welcome news... according to a report from BusinessInsider, Amazon will be controlling the prices on their new app store, not the developer. This doesn't bode well. On our current Android Market (and even on the iPhone), the app developers determine their app pricing. It's strange that Amazon is choosing to go this route. Here's a quote from the article describing Amazon's new 'model':This seems to be a double-edged sword. On the one hand, it could generate more revenue than standard pricing for the developer. On the other, they could be faced with a situation where their app sells for more on iPhone or Android Market than it does on the amazon market, limiting their sales on the other platforms. What do you guys think of this? Any developers in the forums, please sound off. We want to hear your thoughts.Here's how it works: When developers submit apps to Amazon's app store, they will be able to set a suggested retail price ("MSRP"). It can be free, it can be $50, whatever, but it has to be the same price as (or cheaper than) the app is selling anywhere else.
Then Amazon -- not the developer -- will set the retail price. It can be full price, it can be a sale price, or it can be free.
Developers will get to take home the standard 70% of the app's retail price (what the app sells for) or 20% of the MSRP (what the developer thinks it should sell for), whichever is greater.
So if your $10 app is sold for $10, you get $7. If it's sold for $5, you get $3.50. But if it's sold for $1 or free, you're at least guaranteed $2, or 20% of your $10 MSRP.
Source: BusinessInsider via ITProPortal