Analysis: App Stores in detail

iTnews takes a comprehensive look at the app store strategies of Apple, RIM, Microsoft and Android to show which is best for developers.

In the last few months, RIM (Blackberry), Microsoft, Nokia and the Android consortium have all moved to emulate Apple's highly successful App Store model.

The new app stores coming online create a great deal of choice for mobile application developers, but also present a challenge around developer resources.

Developers need to make some important calls now on which platforms provide the most opportunity. Which are the most popular among users? Which are the most cost-effective to develop for?

Hopefully, this table and the accompanying analysis will assist in making these choices.

NB - Nokia was offered over several weeks to reveal details of its Ovi store, but declined. iTnews will update this information should Nokia go public with its plans.

	Apple AppStore(iPhone)	Microsoft Windows Mobile Marketplace	Blackberry App World (RIM)	Android Market (open source)
JOINING FEE	Standard Program US$99, Enterprise Program (for companies with over 500 staff to develop iPhones for in-house use) is US$299	US$99 annually	US$200 (includes ten app submissions).	US$25 - but only available to developers in the US and UK at present
PRICE PER APP	FREE	US$99 Five free apps until close of 2009. App updates are charged as new applications	US$200 for ten application submissions. App updates count as separate submissions	FREE
MARGINS	Developer earns 70 per cent of sale.	Developers receive 70 per cent of sale	Developers receive 80 per cent of sale	Developers receive 70 per cent of sale.
TERMS	Developers paid via monthly direct deposit into bank account	Customers purchase via credit card - other options being explored.	Customers purchase using PayPal. Developers paid via PayPal.	Credit card processing via Google Checkout
MARKET SIZE	30 million devices (17m iPhones, 14m iPod Touch) as of Dec 08	Undisclosed. 18 million licenses sold in 2008 for Windows Phones	21 million Blackberry subscribers	N/A
MARKET REACH	App Store in 77 Countries	Global	United States, Canada and the United Kingdom	US and UK only
DEVELOPER BASE	50,000	480,000	1000+	N/A

The market

Apple's App Store boasts a mind-blowing 800 million downloads for its first eight months of operation - a complete game changer for mobile telephony. Competing with that kind of demand is going to be difficult for any challenger.

That said, there are as many Blackberry-enabled phones and Windows Mobile devices in the wild as iPhones. There is certainly opportunity aplenty should these platforms, and their associated app stores, provide the ease-of-use that has helped bring about Apple's success.

The potential reach for Blackberry App World and Android Market are both geographically limited at present. Both Google and RIM are expected to make announcements on this matter in the near future.

Terms

The terms available to developers are markedly similar, but the devil is in the detail.

Three app stores offer a 70 per cent share of the sale to the developer, but RIM's late entry to the market is compensated with an offer of 80 per cent.

Apple product marketing manager Marcus Annett told iTnews that the company keeps 30 per cent of sales for profit and payment of credit card interchange fees, while Android developer relations lead Dan Morrill said the 30 per cent cut is used to pay carriers and billing settlement costs.

All four offer registration fees to cover the cost of accrediting developers to ensure a certain degree of quality.

The Android Market registration fee of US$25 certainly offers the best value - Microsoft Marketplace represents the worst, given that its US$99 fee is charged annually.

The more interesting fees are those charged for every new application uploaded for sale or free download.

While Apple and Android offer development teams the ability to spin out as many new applications as they see fit, Microsoft and RIM charge on a per app basis (US$99 per app at Microsoft, US$200 per ten apps at RIM). And to make matters worse, both count an update to an existing app as a new one for the purposes of these fees.

RIM may also face challenges if it insists on its users only being able to pay for apps on Blackberry App World via PayPal.