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Business model for Android apps market

 
Claudio Lande
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Hello,

I'm not sure I understand the business model behind Android application development and publishing.

My understanding is that there are two models:
- selling applications (having clients pay for getting applications)
- have (typically free) applications show ads and get money from advertisers when clients are shown commercials

Some companies might not want to get revenues from Android applications (and other mobile terminals) but rather aim at giving their user one more way to access their on line services.

Is this correct? Am I missing something here?

Thank you for any help on this.

Best regards,
Claudio
 
Frank Ableson
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Claudio

There are many developers who write apps and attempt to sell them. You will note however that the highest number of downloads are for "free" applications. Personally I think that the place to win with mobile applications commercially is by providing value in a free application that is either a portal for "gated" content and/or for building brand loyalty as an add-on to an existing product. For example, I have written essentially "catalog" applications for large clients who wanted to be more in touch with their client base. The app is free, but it increases touch and loyalty with this brand's clients.

Frank
 
Ulf Dittmer
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Another option available through the Android Market has just been announced: in-app purchasing.
 
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