Android Market open for business, revenue details emerge

Being that the T-Mobile G1 launched officially today in the US of A, it makes sense that the phone's marketplace for applications would open its doors as well. A recent post over at the Android Developers Blog has affirmed that users can now indulge in over 50 apps, and moreover, it has laid out details surrounding the process for getting your own app in there. Beginning on Monday, prospective devs will be forced to "register and pay a one time $25 application fee" in order to ensure that they're "authenticated and responsible for their apps." After that, the programs will be "made available to users without further validation or approval." Starting in Q1, developers will be able to distribute paid apps in addition to free apps, and similar to Apple's revenue model, devs will get 70% of the revenue, though it should be noted that Google won't be taking a percentage of the remainder; apparently, it all goes to settling bills with the carriers (T-Mobile's really insistent about getting some dues for app bandwidth usage, isn't it?) and payment processing systems. Go at it, you eager developer you -- we fully expect a gratis app showing off your handiwork to emerge on the 27th.

[Chris @ Oct 22nd 2008 12:59PM]

"devs will get 70% of the revenue, though it should be noted that Google won't be taking a percentage of the remainder." The other 30% is going to me right?

[fett327 @ Oct 22nd 2008 1:06PM]

Its assumed that the other 30% goes to the costs of maintaining the App Store. Same as Apple does.

[joe @ Oct 22nd 2008 3:53PM]

you didn't read it correctly. 70% goes to developers, 30% goes to t-mobile... 0% goes to Google... Google had better hope a mobile ads model works because without even taking a little cut, maintaining the app store and processing the transactions could get very expensive...

[cadillac @ Oct 23rd 2008 1:36PM]

@Joe - Yeah, I am sure Google has no idea what they are doing. They are probably just now getting around to figuring out the business model. Come on... at the end of the day they will make the most money.

[Bryan Cromwell @ Oct 22nd 2008 1:03PM]

Is there a link to the market place or do you have to use the phone?

[Canoo @ Oct 22nd 2008 1:05PM]

?????? = Unaccounted for 30%
Profit!!!

Finally! That makes sense now!

[MyHeadisFed @ Oct 22nd 2008 1:11PM]

It costs money to distribute things and keep them running....you didn't expect this to be a charity did you?

[bjsguess @ Oct 22nd 2008 1:17PM]

@MyHeadisFed

Does it cost more to host paid for apps than free apps? If not, who pays to support the distribution of free apps?

[Canoo @ Oct 22nd 2008 1:17PM]

"it should be noted that Google won't be taking a percentage of the remainder."

[MyHeadisFed @ Oct 22nd 2008 2:37PM]

@bjsguess

People that pay for apps pay for the distribution of free apps. That was my point.

[iEye @ Oct 22nd 2008 4:37PM]

Well, you could allways go and buy yourself a few Drobos and host an app store yourself if you feel that you should be getting %100 prifit for running a business but not have and overhead costs... lame

[linuxamp @ Oct 23rd 2008 12:39AM]

@MyHeadisFed Well almost all other Google services are free so your point is invalid.

Also, there's nothing to stop developers from distributing apps on their own. I hear the only difference is that users will see a few notices to warn that the app is not approved or something.

[Ian @ Oct 23rd 2008 11:18AM]

What's the point of those warnings if apps sold at the Android Marketplace never passed any sort of security check either?

I always thought of such shops as places where all apps can be found in one place. That's the benefit. People who go looking for apps will probably head to Android's marketplace before going elsewhere.

[h_2_o @ Oct 22nd 2008 1:15PM]

I'm curious if google will be running ads and sponsored links in the app store. it sounds like a silly question but that 30% might end up being BS and this being just another huge cash cow for their advertising. I've got nothing against them doing this if they actually do that, just would like them to be upfront if they do.

[winterfreez @ Oct 22nd 2008 2:01PM]

I don't think Google would hold back on something like that. After all, they were up front about the kill switch, which could be WAY more invasive than some Google ads in the store.

[0megapart!cle @ Oct 22nd 2008 1:16PM]

I imagine that a good chunk of that 30% is going to Tmobile for providing the bandwidth for the app downloads. Still seems like costs wouldn't amount to 30%.

[Ian @ Oct 23rd 2008 11:19AM]

I think double-charging for used bandwidth stinks. They've charged the user, and now they're going to take 30% of an app's sale?

[UnixSystemsEngineer @ Oct 22nd 2008 1:37PM]

So where's the "talk about your G1" thread? Surely we have some engadget readers with a shiny new G1 in their hands today / yesterday / monday?

[ben123 @ Oct 22nd 2008 2:46PM]

I just picked mine up today. First impression...its making my roommates and their iPhones green with envy, seriously.

This phone has to be seen in person, its an entirely different experience than what you get in a photo.



If anyone wants to reply with a question about the g1, I'll be more than happy to answer!

[Frankenstein Black @ Oct 22nd 2008 1:42PM]

Come on now SLING dudes, you know what has to be done on Android ASAFP! And don't let the cock blockers over at the JobO the Hutt Syndicate threaten you either!
http://www.engadget.com/2008/06/08/sling-announces-proof-of-concept-slingplayer-mobile-for-iphone/

[Anders @ Oct 22nd 2008 1:43PM]

Well,
30% is for both running the store, i guess, and approving apps, and, more important paying for all those free apps. And its a choose of course, you can distribute your Google Apps in any way you want, compared to the "closed app store only" method Apple is using.

[Aaronsoup @ Oct 22nd 2008 1:48PM]

I think that's the most important thing. The App Store is a simple option to try products. You're free to put whatever you want on this device though, someone can just as easily sell/distribute products from their own website.

[charles @ Oct 22nd 2008 1:57PM]

RE: "gratis" software. Excellent use of the word. I will use this word when I have to distinguish between "gratis" and "free" software. Frankly, no one's going to use the word "libre" when talking about software.

[scoob @ Oct 22nd 2008 2:08PM]

Not a fan of this one; going to stick with Steve's app store on the Jesus Phone.

[Chad @ Oct 22nd 2008 3:36PM]

I'm all for lack of censorship with these apps but it's going to be funny to see how many of them are related to pr0n. Who knows.....maybe it could turn out to be a selling point.

[Charbax @ Oct 22nd 2008 5:12PM]

Skype for Android!!! http://android.com/market/#app=iskoot

Is T-Mobile's kill switch going to disable this type of unanounced disrupting VOIP application? (just like Apple hates and blocks VOIP applications on the iPhone)

My guess is T-Mobile is not going to block VOIP apps cause they are forcing people to buy a 2-year voice-plan anyways when people sign up.

I think the best though will be when a carrier sells an Android device below $180 and with a $20 per month unlimited HSDPA data plan only with no voice plans needed.

[linuxamp @ Oct 23rd 2008 12:43AM]

T-Mobile is discouraging the use of high traffic applications such as VoIP and tethering but they have no way to control what types of applications customers load on the device. They could use throttling to affect the performance of such applications but if word gets out that T-mobile is throttling it will generate a lot of negative publicity.

[Jimmy @ Oct 23rd 2008 4:59AM]

I imagined there would be a slice of the sales going to the App Store etc, but 30% to t-mobile?! --how random is that?!

And for what - bandwidth usage? hang-on, I'm already paying for 'unlimited bandwidth' in my contract, they can't charge for it twice!!!