Amazon sells Android apps - why this move and what's the impact ?

This week, Amazon opened its Android app store.
Why is Amazon moving in this direction ? Is it just for money earned selling these apps ?

There are probably much better reasons for this move.

First, Amazon is by far the most successful Digital Shopping Mall in US and Europe. As any shopping mall, there is no reason why not to sell a product which is sold somewhere else. Amazon can not sell Apple iPhone and IPad apps since Apple behaves as a high end brand, restricting sales in its digital, fully controlled experience iTunes store. It's thus about "one-stop-shopping" and comprehensive digital goods proposition.

Second, through this move, Amazon clearly positions itself in the M-commerce business. Amazon becomes fully relevant for Android mobile users and the market place can collect mobile phones numbers of their current customers or recruit new customers. This critical information added to the Amazon account will further enable the giant to further close the loop, possibly engaging in mobile advertising or couponing.

That leads to the third and probably the main reason. Facebook, Apple, Google and Amazon form the FAGA quatuor heading to the same M-commerce expected nirvana, each attacking from a different angle. Google already partially controls the mobile platform real estate, a very good advertising machine and an emerging cash desk. Apple has a fully controlled platform real estate, an emerging advertising machine and an efficient cash desk. Facebook probably has the most efficient platform real estate, (now even extending to feature phones through latest acquisition), including the most innovative advertising machine and is currently building a cash desk.
Amazon is the king of E-commerce, already having all ingredients online but missing presence on mobile. Through this Android store, Amazon penetrates for a low budget an efficient mobile platform real estate to complement a too small Kindle footprint. Amazon is thus strengthening its position in this FAGA quatuor.

The next question concerns the impact on device vendors and mobile apps ecosystem. Will this help or arm Google ? Does it impact Apple ? What about Amazon selling windows phone 7 apps  or Blackberry apps ?

This Amazon Android app store on one hand is an additional factor demonstrating to consumers the openness of Android ecosystem. It can only thus increase relevance of Android phones. On the other hand, it probably arms Google in its quest to spread its Google Checkout, so important in the FAGA war.

Apple is probably not directly impacted, keeping their closed ecosystem and currently suffering (a lot of people would like to suffer this way) the consequences around censorship and too obvious dominance.
BlackBerry apps mainly concern business and are probably less relevant for both Amazon and Blackberry.

The open question remains for Windows phone and especially in the context the Nokia deal. Nokia stopped its unsuccessful OVI store. Amazon could probably be a good partner for Nokia selling special Windows phone apps. But will Microsoft authorize this or will Seattle monster engage in FAGA war to make it FAGAM ?

Future will say ...

Benoit Quirynen

Telecom - automated tariff optimization as the next improvement in customer relationship

Yesterday, I received two messages from my telecom provider.

The first message was an SMS notification that I reached 50% of volume granted by my data plan. I like this kind of positive message when it's not pushed to often.

The second message was a bill. It's usually not a pleasure to receive a bill but this one was a bit special. In the header, the provider announces that tariff optimization process has been run based on my consumption and the tariff plan that I have selected is still the best one for me.

It is also mentioned that they will automatically run this tariff optimization process every 6 months. The optimization facility was already available before but it was up to the subscriber to run it and to switch tariff. Now, at least the simulation is executed automatically.

Telecom operator considers that it's better to keep an existing subscriber than artificially increase the Average Revenue Per User (ARPU) based on poor customer relationship. Customer loyalty improvement could make a sound difference for the value of the share at the end. I consider it as a good anti-churn tool and a very good move of telecom industry inline with respect of the subscriber. A win-win deal obviously.

What is still missing is a simulation of tariff with offers from competitors. It would have been very nice to add a sentence : "and if you would have selected provider B, you would have paid x € more every month" ... if it's true.

Is "automated cross-provider tariff comparison" the next step in customer relationship improvement ?

To be continued ...

Benoit Quirynen