Did you hear? The Kindle Fire is officially sold out for good. That must mean that a Kindle Fire 2 announcement is imminent. Amazon saw great success with the hardware, but they want you to know that the apps are where it's really at.
Amazon announced that the Amazon App Store has facilitated the purchase and download of hundreds of millions of apps. They also said that more developers keep coming to the App Store in hopes of striking it rich. They attribute the growth to their "industry-leading e-commerce features like 1-Click purchasing and In-App Purchasing."
“Amazon’s platform is a complete end-to-end solution for developers wanting to build, market and monetize their apps and games,” said Paul Ryder, Vice President of Apps and Games at Amazon. “Developers can build their apps and games using Amazon Web Services’ industry-leading infrastructure platform. For important audience engagement features like leaderboards, achievements, and syncing game state between devices, developers can use Amazon’s new GameCircle services. To gain exposure to tens of millions of customers, developers can list their apps in the Amazon Appstore and take advantage of awareness-building programs like Free App of the Day. And, to monetize their apps and games, customers can use Amazon’s industry-leading e-commerce and payment capabilities like In-App Purchasing and Subscriptions.”
Developers are encouraged to use the in-app purchasing model on the Amazon App Store whenever they can. Amazon found that in-app purchasing brings in more than twice the revenue of traditional paid apps. It's the same just about everywhere else as more games go free-to-play while supporting themselves on a massive number of in-app purchases.
A number of developers from Spotify, Glu, Pocket Gems and more have joined the Amazon praise chorus. They say their apps have a kind of visibility that just isn't available on other platforms. It's hard to say whether or not the Amazon App Store has an app graveyard like Apple's 400,000 still undiscovered apps.
As fas as overall revenue goes, however, Amazon's App Store is still in second place. Despite the majority of apps never even being downloaded, Apple's App Store still commands most of the market. That's not to say that Amazon is doing poorly. In fact, they're doing much better than Google Play in terms of revenue.
All of this is to say that Amazon will be pushing digital goods even more in the future. The Kindle Fire 2 launch is probably going to bring an update to the Amazon App Store. Developers can't afford to stay on any platform these days. Amazon's App Store is a major contender and developers would be wise to recognize that.