There are reports circulating that both Microsoft and Samsung will soon open their own “App Stores” to distribute applications for their handsets (or Windows Mobile-based handsets, in Microsoft’s case). Such moves will become common, I think; the opportunity cost is low and Apple has really pointed the way not just in handset capabilities, but in ecosystem as well. And while Web-based apps will eventually dominate, having a ton of apps and applets that execute locally adds gravitas (I’ve always wanted to use that word) to one’s handset offering (or position as a legitimate major player, in Microsoft’s case).
But there’s a more important element at work here – incremental revenue. The handset guys have had to rely on users buying new handsets to extract more cash from the customer, and, as I wrote last month, having to wait two years for this possibility and the inherent brand-switching risk it entails isn’t good business. The automakers have had some success along these lines (satellite radio and IVHS stuff like OnStar and update DVDs for Nav systems), and, indeed, there are few consumer-electronics opportunities where incremental revenue isn’t a possibility. And there’s no requirement for a central clearinghouse of mobile apps, since cross-platform execution remains problematic and there’s no point in learning about apps that won’t run on your particular handset anyway. Apps in fact at present need to be bound to specific handsets, and thus can be bound to specific app stores, and thus could provide a few more bucks to the handset/OS guys who otherwise sit patiently, hoping you’ll be back in two years.
