Last week Amazon.com launched its own Android Appstore. This is a big deal because Amazon is not just any e-commerce store but the biggest one on the planet. But more importantly, it could signal a major shift in the Tablet wars.

It’s worth mentioning that Amazon has not said it would be launching its own line of Android Tablets although my analysts and industry observers think it’s just a matter of time before that happens. And if it does, the Amazon Appstore will be a key success factor in its overall strategy.

NONEThere’s no question the iPad (right) is a beautifully designed device. But it’s the apps that make it so popular. Right now, the Apple App Store has something like 350,000 apps which makes buying an iPad so appealing.

Google’s Android Marketplace pales in comparison with only about 150,000 apps. Amazon’s Appstore is even worse with only a few thousand apps. But that’s for now. In time it will surely grow. Just as Amazon.com is the world's biggest virtual bookstore, I’m pretty sure it aims to be the biggest app store too.

If Amazon has plans to launch its own line of Android Tablets, it’s keeping its cards close to its chest. An Amazon.com spokesperson declined to say whether it was going to enter the Tablet arena.
Amazon’s official reason for launching the app store is that it can make it easier for consumers to find the apps they want to buy.

“The sheer number of apps available today makes it hard for customers to find high-quality, relevant products at great prices,” the Amazon spokesperson said. “We’ve spent years developing innovative features that help customers find and discover relevant products from our vast selection, and we’re excited to apply those capabilities to the apps market segment.”

If you’ve ever bought anything from Amazon, you’ll realise that it’s no exaggeration to say that Amazon will drastically improve the Android app-buying experience. It’s recommendation engine is almost prescient in figuring out what you’d like to buy. It’s got a massive membership which like to post customer reviews. It’s got a simple one-click payment option that makes buying online hassle free.

Seamless eco-system

One of the reasons Apple has been so successful with the iPod and iPad is that it’s managed to build a complete eco-system around the devices. The former has the iTunes Music Store while the latter has the App Store.

No other device maker has managed to replicate that kind of seamlessness eco-system. Except Amazon. Look at how successful its Kindle is. The reason for that success is its seamless interface with the Kindle store.  

If Amazon can replicate that seamless eco-system for the Tablet, it could have a massive winner in its hands.

Besides having an easy payment engine and good recommendations Amazon is also offering some incentives to lure people to its newly launched app store. Angry Birds Rio, a new movie-inspired version of the popular game, is available for free from the app store. Amazon is also making one commercial application available for free every day.

Is Apple scared? If it's not at least a little worried, it should be. All along, Apple’s trump card is the fact that it has a seamless eco-system while the Android market is heavily fragmented.

“In addition to Google’s own app marketplace, Amazon, Verizon, and Vodafone have all announced that they are creating their own app stores for Android - so there will be at least four app stores on Android, which customers must search among to find the app they want,” Apple CEO Jobs told analysts last year. “This is going to be a mess for both users and developers,” he added.

NONEWishful thinking on Jobs’ part? It could be. Or perhaps he’s just over-confident. Whatever the case, mark my words: The Tablet wars have just started getting interesting.

The entrance of Amazon onto the scene changes everything. While there’s no question Amazon can provide a user-friendly app store, there really should also be no question it could make great devices. Why do I say so?

Again, look at what it’s done with the Kindle (left), a magnificent device, and a real success. It’s Amazon’s best selling item ever and today, more Kindle books are sold than their paperback and hardcover counterparts.

The other thing that Apple should fear about Amazon is that amongst all the companies in the online landscape, it's the one company that has consistently shown that it can match Apple in taking bold, forward-thinking risks and create success out of new markets.

May the Tablet wars begin!

Note: Amazon’s App Store is currently only available in the US.

 

OON YEOH is managing editor of AsiaReach Media. You can follow him at www.twitter.com/oonyeoh.