Android Market Fees

Last month, Google said that Android Market is a key component for all mobile phones that run Android. "We made a strategic decision not to revenue share with the developers. We will basically pass through any revenue to the carrier or the developer."

Android Market is now live, but developers can't upload their applications until next Monday. For now, developers can only upload free apps and they're required to pay $25 before registering. "We charge this fee to encourage higher quality products on the market (e.g. less spammy products)," explains Google.

From next year, developers will be able to distribute paid applications. Google opted for a similar revenue sharing model like Apple (70/30), except that 30% of the revenue will go to carriers. "Developers will get 70% of the revenue from each purchase; the remaining amount goes to carriers and billing settlement fees — Google does not take a percentage. We believe this revenue model creates a fair and positive experience for users, developers, and carriers," notes Eric Chu.

Although applications are one of the most exciting things about Android-powered mobile phones, Google didn't manage to provide an auto-update mechanism for applications and you can only install applications on the phone's internal memory.