The issue came up during Google’s earnings conference call, when an analyst asked what Google thought about these new app markets that are popping up. Here’s Schmidt’s answer (we were transcribing from a live call so it is a bit paraphrased):
The goal of the stores is to make money for people writing the applications, not a revenue goal for Google. There will certainly be multiple stores – including a key one from us. It’s a net win for everybody.
This jives with Google’s messaging around other Android issues: competition is good, and the market will decide what works and what doesn’t. In the long run, I think they’re right, but in the short term this could spell frustration: what happens when an app store demands exclusivity from a developer? And how will a user react when they can’t use the same payment mechanism from store to store, or the pricing and availability differs? Consumers may be used to having to shop around in the real world, but this is a totally different paradigm from what’s been established on smart phones for the last two years.
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Authors: Jason Kincaid