Apple Execs Are Starting To Feel Threatened By ... - Business Insider

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Apparently Apple executives are really starting to get worried about competition from Amazon's App Store.

In a new piece about the ongoing rivalry between the two tech giants, The Wall Street Journal drops this little tidbit:

Apple is also paying close attention to Amazon's app store, according to developers, who said Apple executives have told them they think Amazon's controlled, iTunes-like approach makes it more competitive than other app stores, including one operated by Google Inc.

That might sound odd at first considering that Amazon's App Store had just more than 30,000 apps as of March of this year, while Apple's App Store currently has more than 650,000 apps.

However, Amazon does have a leg up on some of Apple's other competitors in the app market in part because its model is so similar to Apple's. Amazon has reviewers who decide whether an app gets accepted into the app store (unlike Google), which ensures a certain amount of quality control. Amazon also has a huge existing customer base already, most of whom have credit card information on file with the company (like Apple), which makes it easier for them to make purchases in the app store.

Indeed, at least one study has already shown that Amazon's app store generates more revenue per user than Google, and not that much less than Apple. This, in turn, could help the company attract more app developers who are frustrated with the difficulty of making money with Android. Amazon is already ramping up the process of actively courting developers as is.

It still seems premature to view Amazon's app store as a big threat to Apple, but considering that Amazon is reportedly looking to compete more with Apple in the future by launching a larger Kindle Fire tablet and a new smartphone, Amazon's app store could pose a bigger threat down the road.

Source: http://www.businessinsider.com/apple-execs-are-starting-to-feel-threatened-by-amazons-app-store-2012-7

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