Amazon is continuing the expansion of its app store, announcing yesterday that developers can submit their apps for distribution in 200 countries, including Australia, Brazil, Canada, Mexico, India, SA and South Korea.
Amazon says apps should be available to other international consumers within the next few months. Registered developers, who want their apps to be distributed internationally, will automatically have their apps available for download, unless they designate otherwise, it notes.
This international expansion is the latest in a series of Amazon Appstore for Android launches, which have included the UK, Germany, France, Italy, Spain and Japan.
Mike George, VP of apps and games at Amazon, says the expansion is another important step as Amazon strives to serve consumers and developers globally. "Many of our existing developers have localised their apps and games for international consumers, and we look forward to working with new developers that have been waiting to bring their apps to more Amazon customers across the globe."
There is, however, doubt that the Appstore will take off locally. World Wide Worx MD Arthur Goldstuck says the real value proposition of the Amazon Appstore is its integration with the Kindle Fire tablet, which is not currently available in SA. The result is that the Appstore will make little impact in SA initially.
"But it does open the way for a distributor to bring in the device. With the Amazon Kindle already officially distributed in SA, we can expect a similar distribution deal for the Kindle Fire in the course of this year," he adds.
Goldstuck says it's all about timing and that a simultaneous launch of the Appstore and the Kindle Fire would make the most sense. "If the price is right - ie equivalent to the highly-competitive pricing in the US - then it will make an impact on this market."
He adds, however, that a great deal of education of the market, along with heavy marketing, will be needed, and that the absence of an Amazon.co.za store will ultimately be the major hold-back.
Market moves
Earlier this year, Amazon stock hit an all-time high on the Nasdaq, as it climbed to $290.49, before settling at $283.99, after releasing quarterly and full-year results.
The stock's previous record high was $283.99, which it hit on 25 January in regular trading, after 4.9 million shares changed hands. Amazon is expected to release its next quarterly results on 25 April.
When looking at the download of apps, Apple still has the stronghold, followed closely by the rapidly growing Android market. According to Canalys' App Interrogator research, released last week, Apple's App Store accounted for the largest proportion of revenue between the four app stores, with 74%.
The Google Play store saw the greatest number of downloads, accounting for about 51% of the stores' collective total, with Apple falling just behind. Amazon does not even feature under the top four app stores, with Windows Phone Store and BlackBerry World taking the third and fourth place, respectively.
Goldstuck says the figures speak for themselves. "In its own right, separated from the Kindle Fire, the Amazon Appstore doesn't give users much of a reason to use it in addition to the Google Play store."
But, according to a study by research firm NPD Group, during the fourth quarter of 2012, more than a fifth, or 22%, of all digital music downloads were made from Amazon, while Apple still dominated with 68%.
Goldstuck adds that the appeal of music and video could steer the Appstore to success locally. "Once the Kindle Fire is launched in SA, we are likely to see movie and music services bundled with it as well, which will up the ante for the burgeoning local music and movie download industry."
This is not the first time the Nasdaq-listed company has reached out to SA. Last year, the online retailer started bulking up its software development presence in Cape Town, revealing plans to hire about 50 new staff members and add about the same amount of employees in 2013.
At that time, the online retailer already had about 800 employees in its call centre unit. Amazon, which launched in 1995, has more than 56 000 staff members around the globe.
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