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Amazon to Open Android App Store as Apple Sues

Posted by Abhishek Tuesday, 22 March 2011 0 comments


Amazon.com is entering the mobile app business with an Android app store that is scheduled to open Tuesday. The store’s name has already prompted a lawsuit from Apple.
The Amazon Appstore, which will be accessible at Amazon.com/appstore and through a mobile app, will sell applications for Android phones and tablets. It will also encroach on Google’s territory by providing Android users with a new way to buy apps that cuts Google out of the equation.
The store, which Amazon initially announced in January, prompted a trademark infringement suit on Friday from Apple, which claims ownership of the App Store name. “We’ve asked Amazon not to copy the App Store name because it will confuse and mislead customers,” Apple said in a statement late Monday. Amazon said it had a policy of not commenting on litigation.
Because Android is an open platform, unlike Apple’s, other companies can open stores that sell Android apps. But Amazon is perhaps a more formidable competitor than others because people are used to buying things through the site and its mobile apps — and many have stored their credit card numbers on Amazon for years.
Amazon will provide a few things that Google’s Android Market does not, said Aaron Rubenson, category leader for the Appstore at Amazon, by throwing its marketing and e-commerce expertise behind the new service.
“We spent years building shopping features that help customers find the products that are relevant to them from amidst a massive selection,” Mr. Rubenson said, “and we’re excited to apply those capabilities to the apps market.”
For instance, it will use the recommendation algorithm that Amazon uses on its Web site to suggest certain apps, so if someone shops for March Madness gear on Amazon.com, the Appstore would recommend basketball apps. It will also offer a paid app for free every day, beginning with Angry Birds Rio. And users can test apps on the Web site before buying them.
The recommendation engine may be most important. There are so many apps that Apple, Google and others have struggled to suggest the right ones to users. For a long time, Google’s Android Market was quite difficult to search, but Google recently introduced a new and improved Android Market. A Google spokesman declined to comment on Amazon’s Android app store.
For app developers, the biggest difference between Amazon’s app store and others is that Amazon will set the prices the apps will sell for. Developers will suggest a price, but Amazon could sell them for a different price — potentially less than the sale price on the Android Market. Amazon will pay developers the greater of either 70 percent of the sale price, which is the standard revenue-share percentage for app stores, or 20 percent of the price the developer suggests the app sells for.
Unlike Google, Amazon will review apps before they are sold, but will only block them if they don’t work or if they put the customer’s data at risk, Mr. Rubenson said. That is somewhere in between the policies of Apple, which has blocked apps for other reasons, and Google, which doesn’t review them and faced the consequences this month when malware snuck into the Android Market.
As for whether the Kindle, Amazon’s e-reader, could eventually run the Android operating system, Mr. Rubenson said there is “nothing that we’ve announced.” Amazon is, however, considering selling apps for platforms other than Android.


Amazon.com is entering the mobile app business with an Android app store that is scheduled to open Tuesday. The store’s name has already prompted a lawsuit from Apple.
The Amazon Appstore, which will be accessible at Amazon.com/appstore and through a mobile app, will sell applications for Android phones and tablets. It will also encroach on Google’s territory by providing Android users with a new way to buy apps that cuts Google out of the equation.
The store, which Amazon initially announced in January, prompted a trademark infringement suit on Friday from Apple, which claims ownership of the App Store name. “We’ve asked Amazon not to copy the App Store name because it will confuse and mislead customers,” Apple said in a statement late Monday. Amazon said it had a policy of not commenting on litigation.
Because Android is an open platform, unlike Apple’s, other companies can open stores that sell Android apps. But Amazon is perhaps a more formidable competitor than others because people are used to buying things through the site and its mobile apps — and many have stored their credit card numbers on Amazon for years.
Amazon will provide a few things that Google’s Android Market does not, said Aaron Rubenson, category leader for the Appstore at Amazon, by throwing its marketing and e-commerce expertise behind the new service.
“We spent years building shopping features that help customers find the products that are relevant to them from amidst a massive selection,” Mr. Rubenson said, “and we’re excited to apply those capabilities to the apps market.”
For instance, it will use the recommendation algorithm that Amazon uses on its Web site to suggest certain apps, so if someone shops for March Madness gear on Amazon.com, the Appstore would recommend basketball apps. It will also offer a paid app for free every day, beginning with Angry Birds Rio. And users can test apps on the Web site before buying them.
The recommendation engine may be most important. There are so many apps that Apple, Google and others have struggled to suggest the right ones to users. For a long time, Google’s Android Market was quite difficult to search, but Google recently introduced a new and improved Android Market. A Google spokesman declined to comment on Amazon’s Android app store.
For app developers, the biggest difference between Amazon’s app store and others is that Amazon will set the prices the apps will sell for. Developers will suggest a price, but Amazon could sell them for a different price — potentially less than the sale price on the Android Market. Amazon will pay developers the greater of either 70 percent of the sale price, which is the standard revenue-share percentage for app stores, or 20 percent of the price the developer suggests the app sells for.
Unlike Google, Amazon will review apps before they are sold, but will only block them if they don’t work or if they put the customer’s data at risk, Mr. Rubenson said. That is somewhere in between the policies of Apple, which has blocked apps for other reasons, and Google, which doesn’t review them and faced the consequences this month when malware snuck into the Android Market.
As for whether the Kindle, Amazon’s e-reader, could eventually run the Android operating system, Mr. Rubenson said there is “nothing that we’ve announced.” Amazon is, however, considering selling apps for platforms other than Android.


Mozilla, the maker of Firefox, released the latest version of its free and open source Web browser to the public on Tuesday.
The browser boasts a number of improvements over past iterations, including a new look and feel, and increased privacy and security features. One security upgrade, “Do Not Track,” will allow “users to set a browser preference that will broadcast their desire to opt-out of third party, advertising-based tracking,” Mozilla said.
The new Firefox also promotes interactive capabilities with HTML5, a Web programming language that provides full interaction without the need of external plug-ins like Adobe Flash and Microsoft Silverlight.
Gary Kovacs, chief executive of Mozilla, said in a recent interview that the new capabilities added to the browser will enable developers to build applications using HTML5 that are similar to downloadable applications currently used on a number of mobile devices. These so-called Web Apps include fully interactive graphics and games. Mozilla also set up a Web site,  The Web O’(pen) Wonders, to showcase some advanced examples of the new browser’s rendering engine.
Mr. Kovacs said that the “millions of developers who currently build Web sites” would be given opportunities to showcase rich interactivity with the new browser, and that these features could help add some balance to the current battle between the open Web and downloadable apps that only operate on specific platforms.
Mozilla also began offering a new feature, Mozilla Sync, which allows people with the Microsoft browser to automatically sync their bookmarks, open browser tabs and settings between multiple computers, mobile phones and Android-based tablet computers. The Mozilla Sync feature will not work with Apple’s iOS devices, which include the iPhone and iPad, because the browser is not available on Apple’s mobile platform.
The new browser had been downloaded nearly three million times hours after it was made available online. Microsoft’s Internet Explorer 9 was downloaded2.35 million times within the first 24 hours of its availability last week.


Mozilla, the maker of Firefox, released the latest version of its free and open source Web browser to the public on Tuesday.
The browser boasts a number of improvements over past iterations, including a new look and feel, and increased privacy and security features. One security upgrade, “Do Not Track,” will allow “users to set a browser preference that will broadcast their desire to opt-out of third party, advertising-based tracking,” Mozilla said.
The new Firefox also promotes interactive capabilities with HTML5, a Web programming language that provides full interaction without the need of external plug-ins like Adobe Flash and Microsoft Silverlight.
Gary Kovacs, chief executive of Mozilla, said in a recent interview that the new capabilities added to the browser will enable developers to build applications using HTML5 that are similar to downloadable applications currently used on a number of mobile devices. These so-called Web Apps include fully interactive graphics and games. Mozilla also set up a Web site,  The Web O’(pen) Wonders, to showcase some advanced examples of the new browser’s rendering engine.
Mr. Kovacs said that the “millions of developers who currently build Web sites” would be given opportunities to showcase rich interactivity with the new browser, and that these features could help add some balance to the current battle between the open Web and downloadable apps that only operate on specific platforms.
Mozilla also began offering a new feature, Mozilla Sync, which allows people with the Microsoft browser to automatically sync their bookmarks, open browser tabs and settings between multiple computers, mobile phones and Android-based tablet computers. The Mozilla Sync feature will not work with Apple’s iOS devices, which include the iPhone and iPad, because the browser is not available on Apple’s mobile platform.
The new browser had been downloaded nearly three million times hours after it was made available online. Microsoft’s Internet Explorer 9 was downloaded2.35 million times within the first 24 hours of its availability last week.



OTTAWA — Research In Motion challenged Apple on Tuesday by announcing that its BlackBerry PlayBook would be sold at the same price as the iPad 2.
But the success or failure of the BlackBerry tablet, which will have a base price of $499, is unlikely to be determined in the aisles of Best Buy,Staples, RadioShack or the other retailers that will begin offering it on April 19. Many analysts believe that the PlayBook’s main customer base, like that of the original BlackBerry smartphone, will be corporations and government buying in bulk at a discounted price.
“Maybe ‘PlayBook’ is a misnomer,” said Tony Cripps, an analyst with Ovum, a unit of Datamonitor, who is based in London. “R.I.M. would be crazy not to maximize its advantages in the enterprise market.”
The PlayBook will be the first tablet that is directly price-competitive with Apple’s offering. By comparison, both the Motorola Xoom and the Samsung Galaxy Tab cost more than the iPad 2. Hewlett-Packard, which is also expected to sell its TouchPad tablet to corporations, has not yet announced the price of its device.
While Best Buy began accepting advance orders for the PlayBook on its Web site on Tuesday, the primary buyers of the PlayBook are unlikely to be paying retail. From the first days of the BlackBerry hand-held, R.I.M. carefully cultivated relationships with the information technology departments within corporations and governments. Its products have long included security and control features that are of more interest to people who run computer systems than to the employees using the BlackBerrys.
Jeff Orr, an analyst with ABI Research, said that R.I.M. had been consulting with its large customers about the PlayBook for several months. “They’re playing to a market where they definitely have a closer relationship than Apple,” Mr. Orr said.
That has produced some initial corporate interest. Sun Life Financial, a large insurance and financial services company in Toronto, has agreed to buy about 1,000 PlayBooks and said that it had already developed an application for the devices.
But beyond the identical prices, R.I.M. and Apple have taken several different approaches to their tablets. The PlayBook, for example, has a 7-inch screen compared to the iPad 2’s 9.7-inch display. But unlike the iPad 2, the PlayBook can display Web pages that use Adobe Flash software. and it has a much higher resolution camera for video and still photography.
At first, the PlayBook will be available only in a version that connects to the Internet through Wi-Fi. R.I.M. has said that more advanced, and costly, models for use on wireless carriers’ networks will be available from Sprint this summer. Following Apple’s lead, R.I.M. said that in addition to the base model with 16 gigabytes of memory, the PlayBook will be offered as a 32-gigabyte version for $599 and a 64-gigabyte model for $699.
Despite the embrace of the iPad by consumers, the demand from businesses and governments for tablets remains, at best, unclear. “It’s still very, very early stages,” said Mike Abramsky, an equity analyst with RBC Capital Market, a unit of the Royal Bank of Canada, who said that small businesses currently accounted for most nonpersonal use of tablets.
Still, Mr. Abramsky expects that sales to corporations and governments will account for about 30 to 40 percent of all tablet sales by the end of 2012.
Mr. Abramsky said that many corporations would probably prefer the PlayBook because of their history with the BlackBerry smartphone. But at the same time, he said he also expected that companies would find ways to integrate iPads and tablets based on Google’sAndroid operating system, if for no other reason than to accommodate employees who bring their personal devices to work.




OTTAWA — Research In Motion challenged Apple on Tuesday by announcing that its BlackBerry PlayBook would be sold at the same price as the iPad 2.
But the success or failure of the BlackBerry tablet, which will have a base price of $499, is unlikely to be determined in the aisles of Best Buy,Staples, RadioShack or the other retailers that will begin offering it on April 19. Many analysts believe that the PlayBook’s main customer base, like that of the original BlackBerry smartphone, will be corporations and government buying in bulk at a discounted price.
“Maybe ‘PlayBook’ is a misnomer,” said Tony Cripps, an analyst with Ovum, a unit of Datamonitor, who is based in London. “R.I.M. would be crazy not to maximize its advantages in the enterprise market.”
The PlayBook will be the first tablet that is directly price-competitive with Apple’s offering. By comparison, both the Motorola Xoom and the Samsung Galaxy Tab cost more than the iPad 2. Hewlett-Packard, which is also expected to sell its TouchPad tablet to corporations, has not yet announced the price of its device.
While Best Buy began accepting advance orders for the PlayBook on its Web site on Tuesday, the primary buyers of the PlayBook are unlikely to be paying retail. From the first days of the BlackBerry hand-held, R.I.M. carefully cultivated relationships with the information technology departments within corporations and governments. Its products have long included security and control features that are of more interest to people who run computer systems than to the employees using the BlackBerrys.
Jeff Orr, an analyst with ABI Research, said that R.I.M. had been consulting with its large customers about the PlayBook for several months. “They’re playing to a market where they definitely have a closer relationship than Apple,” Mr. Orr said.
That has produced some initial corporate interest. Sun Life Financial, a large insurance and financial services company in Toronto, has agreed to buy about 1,000 PlayBooks and said that it had already developed an application for the devices.
But beyond the identical prices, R.I.M. and Apple have taken several different approaches to their tablets. The PlayBook, for example, has a 7-inch screen compared to the iPad 2’s 9.7-inch display. But unlike the iPad 2, the PlayBook can display Web pages that use Adobe Flash software. and it has a much higher resolution camera for video and still photography.
At first, the PlayBook will be available only in a version that connects to the Internet through Wi-Fi. R.I.M. has said that more advanced, and costly, models for use on wireless carriers’ networks will be available from Sprint this summer. Following Apple’s lead, R.I.M. said that in addition to the base model with 16 gigabytes of memory, the PlayBook will be offered as a 32-gigabyte version for $599 and a 64-gigabyte model for $699.
Despite the embrace of the iPad by consumers, the demand from businesses and governments for tablets remains, at best, unclear. “It’s still very, very early stages,” said Mike Abramsky, an equity analyst with RBC Capital Market, a unit of the Royal Bank of Canada, who said that small businesses currently accounted for most nonpersonal use of tablets.
Still, Mr. Abramsky expects that sales to corporations and governments will account for about 30 to 40 percent of all tablet sales by the end of 2012.
Mr. Abramsky said that many corporations would probably prefer the PlayBook because of their history with the BlackBerry smartphone. But at the same time, he said he also expected that companies would find ways to integrate iPads and tablets based on Google’sAndroid operating system, if for no other reason than to accommodate employees who bring their personal devices to work.