Jan 17th, 2011

Here is something that might give developers considering the Amazon app store reason for concern: according to Business Insider, content makers can only suggest a retail price when submitting their applications, and Amazon will make the final decision on how much any particular app will cost. While ultimately it may turn out to be not such a big deal (we expect Amazon to honor suggested pricing pretty closely), it will no doubt have many second guessing the third-party app selling solution.

Obviously, the biggest impact could be on the actual developer. Amazon has agreed to give 70 percent of revenue generated or 20 percent of the suggested retail price, whichever is greater, back to the developer. This provides some protection in case Amazon decides to run a sale or promotion giving away an app for cheap or free, but if the retailer makes it habit of cutting app prices the 20 percent deal no doubt will see smaller profits than selling an app at its suggested price with a larger percentage cut for the developer.

We’ll have to wait and see how this pans out, but for now we remain cautious about Amazon’s venture into the world of apps.

[via TalkAndroid]