Amazon.comisenteringthe mobile app business with an Android application store that features Amazon’s unique recommendation algorithm, a paid app for free every day, and free app testing on the Web site before purchase.

The Amazon Appstore, which is accessible viaWeband through a mobile app, is a potential iTunes equivalent for Android smartphones and tablets. Initially, users will have access to over 3,800 applications, including titles from Gameloft, Handmark and Glu Mobile. It evenpartneredwith mobile game developer Rovio to launch its new Angry Birds Rio game exclusively on the Amazon Appstore.

People are already used to buying things through Amazon and its mobile apps, giving them the experience and credibility required to break into the mobile apps market. Naturally, Amazon is also enabling one-click purchasing for anyone with a credit card on file.

One surprise for app developers is that Amazon will set thepricesthe apps will sell for. Developers will suggest a price, but Amazon could sell them for a different price, which can even be less than the sale price on the Android Market. Amazon will pay developers 70 percent of the sale price or 20 percent of the price the developer suggests the app sells for, whichever is greater.

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Apple is already fighting back, with the Cupertino companysuingAmazon for trademark infringement of the App Store name and unfair competition.

Story byFrancis Tan

Francis Tan is the Asia editor of TNW, who is based in the Philippines. He is particularly interested in Asian Internet startups, social me(show all)Francis Tanis the Asia editor of TNW, who is based in the Philippines. He is particularly interested in Asian Internet startups, social media and e-commerce. Get in touch with him via Twitter@francistanor Emailfrancis@thenextweb.com.

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