Paid Apps coming soon to Android Marketplace!

One of the biggest areas where the HTC G1 phone on T-Mobile's network lags Apple iPhone is the app store.

So far, the Android Marketplace allowed only free apps in its online store but that is set to change this week. Google is expected to allow developers to start charging for programs sold through the Android market place, says The Wall Street Journal.

You can already hand over money for Android apps - unlike the iPhone you dont have to go through a central store to install new stuff - but until now the ‘official’ shop front has only offered free downloads.

Developers can set the price of their apps and will receive 70% of the revenue - the remaining amount goes to carriers and billing settlement fees-Google does not take a percentage. Google say that they do not intend to make a profit from apps distributed via the Market.
Unlike the iPhone App store that has splits the revenue with the developers, Android allows for third party programmers to keep the profits to themselves. Apple keeps 30 percent of the revenue from apps sold through the iPhone store.

The Android marketplace is also open. Apps do not have to be approved by either the carrier or Google which developed the Android mobile operating system. That is in contrast to Apple's walled garden approach that requires all apps to be scrutinized by the company. iPhone users are billed for paid apps through their iTunes account. It is not clear what kind of payment framework Android will use.

Paid apps should help improve the Android marketplace. At the least, G1 phone users deserve equal access to Tipulator, Super Monkey Ball and iBeer.

Google announces Android Market

Google on Thursday announced Android Market, an online center that will let people find, buy, download, and rate applications and other content for mobile phones equipped with the open-source operating system.

Attracting developer attention is a key part of the Google-led Android software effort, and those who produce applications will have an easy time getting them to the market, Eric Chu of Google's Android project said in a Thursday blog post.

"Similar to YouTube, content can debut in the marketplace after only three simple steps: register as a merchant, upload and describe your content and publish it," Chu said. "We chose the term 'market' rather than 'store' because we feel that developers should have an open and unobstructed environment to make their content available."

Though the first Android phones are planned to arrive later this year, Chu said to expect the initial phone-based Android Market application to be a beta version that might only support distribution of free applications. An update later will handle different versions of applications, support for different profiles of Android phones, and analytics to help developers track adoption.

The move was expected. Google said in May at the Google I/O conference that it would provide a central repository of Android software.

.. from here