Mobile Sands

March 9, 2009

Blackberry App World Looks Well Thought Through

Filed under: Android, App Store, iPhone, Smartphones — Tags: , , , — AJ @ 8:58 pm

Recently, RIM disclosed more information about its planned application store, now called “Blackberry App World”. Information on a FAQ posted on RIM’s website shows that its store addresses several shortcomings of Apple’s store and tries to replicate what worked well for Apple. Here are few things that I liked:

  • Leverages Paypal to reduce purchasing friction – Customers with Paypal accounts will not have to go through the hassle of establishing a new account to download their first app. This is similar to Apple’s strategy of leveraging iTunes accounts to reduce friction on its App Store.  However, it remains to be seen if Blackberry will use free apps on its store to drive Paypal sign-ups,  something Apple does.
  • Sets $2.99 as lowest price to entice developers to invest – Blackberry is pushing for higher quality applications because it is unlikely to beat Apple on the sheer number of applications (Apple claims to have over 25,000). Though there is no guarantee that a $2.99 application will necessarily be better than a $0.99 one, it does provide developers with a business case to invest more.  Blackberry users will not lose out on apps are available for $0.99 on App Store because most such apps have free (“ad-supported”) counterparts that will eventually make their way to Blackberry
  • Allows developers to offer “Try and Buy” – Blackberry allows developers to chose if they want customers to try their application before they buy it. This is a better model than Apple’s, where developers who want to encourage trials have to create and distribute a “Lite” version or Android’s where all apps are “try and buy”by default (since they are returnable in 24 hours)
  •  Offers flexible licensing schemes to attract enterprise software vendors- Blackberry allows software vendors to run their own license distribution servers. This enables software vendors to implement pricing schemes in which they sell a pool of software licenses to large corporations.
  • Is customizable per operator – Gives operators (and developers) control over which apps are distributed in which markets.

Blackberry’s policies combined with the fact that it offers a higher revenue share (80%) than all other application stores should win it developer support. Now, Blackberry needs to do three more things to effectively compete against Apple:

  1. Offer a fantastic shopping and usage experience to buyers
  2. Convince operators and developers that it has momentum
  3. Create awareness about the applications available on its platform

Let us wait and see how it goes.

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