Ahead of the rumored release of its 3D smartphone on Jun 18 in Seattle, giant online retailer Amazon.com Inc. (AMZN) disclosed that the number of apps in its Appstore has almost tripled over the past year. Moreover, Amazon revealed that the number of new developers have also nearly doubled in the past year.
As per Amazon’s disclosure, its Appstore consists of more than 240,000 apps and games, which are available in about 200 countries and on the large number of devices running on Android. However, Amazon is still far behind Apple's (AAPL) App Store and Google's (GOOGL) Play, each of which has over a million apps. Even Microsoft (MSFT) has nearly 400,000 apps in the Windows ecosystem.
But augmented reach, strong monetization and greater revenues on the Amazon Appstore are luring more and more developers.
As per an IDC report commissioned by Amazon, a survey of 360 smartphone and tablet application developers to determine their selling experiences on the Kindle Fire platform indicated that nearly 65% of the developers earned better or similar revenues on Kindle Fire compared to other apps ecosystems.
Furthermore, 74% of the developers witnessed better average revenue per app per user on Kindle Fire. In addition, 76% of these developers stated that the Kindle platform offered better exposure to new businesses than other competing platforms.
Amazon can further strengthen its Appstore by offering a collection of its own services, thus making it the most comprehensive end-to-end ecosystem for developers to build, monetize and sell their apps and games.
Developers can rely on Amazon Web Services’ (AWS) technology to meet their infrastructure requirements. Amazon SNS Mobile Push will allow developers to send push notifications to Apple, Google and Kindle Fire devices using a single application programming interface (API). The login with Amazon feature will enable developers to reduce sign-in hassles for their customers. All these services can lead to increased user engagement and order conversion.
Along with all these, Amazon can easily incorporate Kindle Fire apps, its cloud tools, and features like mobile ads, in-app purchasing and analytics into its rumored 3-D phone platform.
Amazon remains one of the leading players in the fast-growing e-commerce market. The online retail picture is shifting swiftly, with devices playing an increasingly significant role. Therefore, The Kindle platform remains a major growth driver for Amazon. In spite of more popular tablets from Apple, we think Amazon devices come with their own value offerings and therefore attract many developers to make more engaging apps and thereby drive revenues.
Amazon currently holds a Zacks Rank #3 (Hold).
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