Google is now allowing application developers to sell Android applications via the Android Market. Google Checkout will serve as the payment and billing mechanism for Android Market.
Google is leveraging their Checkout function to handle the transactions. It will be interesting to see which platform becomes the favored one for app developers, and whether differences in choice of applications will allow Google to gain more market share in the mobile OS market.
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Google has the name recognition, the installed base of users of their services/products, now they are allowing application developers to sell their products without taking a cut of the revenue for themselves. It's the same old formula of giving away the core product and making their money on the a complimentary product/service. And it will likely work again.
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