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Amazon Plans to Go Google One Better With Android Appstore

Amazon (Nasdaq: AMZN) came a step closer to opening its Android Appstore Wednesday by opening a portal for developers. The portal allows app makers to submit their wares to the Internet's largest online retailer so they can be part of the outlet's offerings when its virtual doors open later this year.

Amazon is launching the Android Appstore as a service to its customers, according to spokesperson Anya Waring.

"Given the sheer number of apps available today, it's really hard for customers to find high quality and relevant products at great prices," she told the E-Commerce Times.

Amazon proposes to address quality issues in the app market by reviewing each and every entry before it's sold in the outlet. In addition, customers will be able to review and rate apps, as they do other products sold by Amazon.

As for consumers discovering and finding apps, Amazon's powerful search and recommendation system will also be part of the store.

A criticism of Google's (Nasdaq: GOOG) Android Market has been that it's hard to find things in it and there isn't a lot of information there about the apps.

"If Amazon does it a lot better and puts it together in a way so consumers can find what they're looking for, it would be very appealing," Mark Beccue, an analyst with ABI Research, told the E-Commerce Times.

Amazon has spent years developing innovative features to help customers find and discover relevant products, spokesperson Waring explained.

"We're excited to take those key learnings and innovations and apply those to the apps market segment," she said.

What's more, the store will use Amazon's smooth checkout system for ringing up apps bought by consumers. One of the knocks against Google's Android Market is that paying for apps is limited to Google checkout or Paypal.

Developers, who will receive 70 percent of the sale price of their apps, may also benefit from Amazon's mature payment system.

"There has been some reports of the Android marketplace not working that well for developers in terms of getting paid," Beccue noted.

An added bonus Amazon is offering developers who sell their wares through the retailer's app store is the ability to protect their programs from unauthorized copying through Digital Rights Management.

The prospect of selling to Amazon's 10 million customer base is attractive to some developers.

"It's nice to have a channel with Amazon's market power to sell apps through," Joshua Greenman, president of Mercury Development, told the E-Commerce Times. "However, it's a little disconcerting that developers may have to maintain apps across multiple app stores, which is more work."

With sales spread across several stores, users can get a distorted view of an app's popularity because they can't see an aggregate download number, he explained.

It's not likely that the review process at the Amazon store will improve the apps sold there, in Greenman's view.

"The only thing that will improve the quality of the apps will be less fragmentation in the Android market, which will make it easier and less expensive to make an app that runs on all phones," he maintained.

Anything that improves a shopper's ability to find an app from a computer will help developers, according to Casey Davis, chief system architect at GravityJack.

Finding an app in the Android Market from a mobile phone is easy enough, he explained, but finding one online is more problematic.

"Google made this huge mistake when they didn't index their own marketplace and make it available to people who want to browse it on the Web," he told the E-Commerce Times.

Google did not respond to the E-Commerce Times' request for comment on Amazon's Appstore. But since Google's approval was needed before plans for the store could proceed, it appears that the search giant is unconcerned about competition from the outlet.

"Google could have said no," Beccue said. "It's saying, 'Come on in. See if you can do it better. That's fine.'"

LinkedIn plans to go public in 2011: sources

A LinkedIn profile is seen in a handout image. REUTERS/Handout

A LinkedIn profile is seen in a handout image.

Credit: Reuters/Handout

By Nadia Damouni

NEW YORK | Thu Jan 6, 2011 2:53am EST

NEW YORK (Reuters) - LinkedIn, the social networking site for professionals, plans to go public in 2011 and has selected its financial underwriters, three sources familiar with the process told Reuters.

Morgan Stanley, Bank of America and JPMorgan are among the book runners, these sources said. Bankers made their pitches to the privately-held company in November, one of the sources said.

"An IPO is just one of many tactics that we could consider," a spokesman for LinkedIn said on Wednesday. He declined further comment.

Internet companies such as LinkedIn and Zynga, a popular maker of online social games, are considering offerings well ahead of a potential IPO of Facebook, two sources said.

"Some of these companies want to go public because they want to beat Facebook and others out," said one of the sources. "If Facebook went public before Linkedin, do you think anyone would pay that much attention to Linkedin?" You might want to surpass the beast."

Zynga couldn't be reached immediately for comment.

Facebook is not expected to file for a public offering until late 2012, Facebook board member Peter Thiel told Reuters in September.

But that could change. Regulators are scrutinizing a $500 million investment and a commitment to raise at least $1 billion more in Facebook this week by Goldman Sachs and Digital Sky Technologies, one of the sources said.

The SEC is reviewing whether the number of shareholders in Facebook has exceeded a 499 limit in order to remain private. If the SEC decided Facebook has moved past the threshold, it could accelerate Facebook's timeline for an offering, the source said.

Facebook and Goldman have declined to comment.

The people familiar with the process said LinkedIn is hoping to attract investors on its reputation as one of the Web's fastest growing social network sites.

The site claims more than 85 million members.

The filing of LinkedIn's S-1 registration statement with the U.S. Securities and Exchange Commission, which contains the basic financial information of an issuer, could take months, said one of the sources.

"There are lots of things that are worked on that they could put on hold; they miss numbers; they want to grow a little more," another of the sources said.

Linkedin, which does not disclose financial results, makes money from advertising and premium services. The valuation of a Linkedin IPO was not given by the sources.

AT&T plans 20 new phones, major Android push

By Sinead Carew

LAS VEGAS | Wed Jan 5, 2011 9:44pm EST

LAS VEGAS (Reuters) - AT&T Inc announced four times as many smartphones as it did this time a year ago, backed heavily by Google Inc's software, highlighting the urgency of its quest to lessen its dependence on Apple Inc's iPhone.

The mobile operator, which has been the exclusive U.S. provider for iPhone since 2007, is expected to face tough competition early this year with bigger rival Verizon Wireless expected to kick off sales of the popular cellphone.

AT&T executives said on Wednesday at the Consumer Electronics Show that it would introduce 20 high-speed smartphone models in 2011, including a dozen Google Android devices. At last year's CES, by comparison, AT&T unveiled plans for only five new smartphones.

The first of these phones will come from Motorola Inc, HTC Corp and Samsung Electronics Co Ltd.

The No. 2 U.S. mobile provider also said it would sell a tablet computer from Motorola, but declined to elaborate.

The twin Motorola announcements suggest a shift in industry allegiances as Motorola has recently been the key phone maker for Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc.

Motorola said its Atrix 4G phone, expected to go on sale this quarter, will attach to a new type of accessory called a lapdoc, which looks like a laptop but does not work without the cellphone. Motorola's lapdoc has a laptop size screen and keyboard aimed at better Web browsing, video viewing and typing than on a typical cellphone.

"It will change the way people work," AT&T's president and head of mobility, Ralph de la Vega, said in an interview on the sidelines of the event.

De la Vega said that, after a "good fourth quarter" with a "seasonal pickup in demand," he sees 2011 being a strong year for smartphones sales, which he plans to boost with higher-speed network upgrades.

SPEED UPGRADES?

AT&T has come under fire for its patchy wireless service, which is under increasing strain as bandwidth-hogging smartphones proliferate.

De la Vega vowed to speed up AT&T's plan for upgrading its network with LTE, a high-speed technology already offered by rival Verizon. AT&T's LTE launch is scheduled for the middle of 2011 with coverage for up to 75 million people by year's end. That would put it a year behind its bigger rival Verizon.

But the executive said his company plans to pick up the pace in 2012, with an aim of having its national LTE high-speed upgrade largely complete by the end of 2013. He promised the first LTE phones in the second half of this year.

However, one analyst said that he expects AT&T's news to be upstaged by announcements expected from Verizon Wireless during its CES keynote and news conference on Thursday.

"They did what they could to take the wind out of Verizon's sails," said CCS Insight analyst John Jackson. But he added, "It's not going to be enough to overshadow what Verizon comes out with.

China state newspaper's Web unit plans IPO

SHANGHAI | Wed Jan 5, 2011 1:57am EST

SHANGHAI (Reuters) - People.com.cn, the online news portal run by People's Daily, the mouthpiece of China's Communist Party, aims to list in Shanghai this year, the state-run China Daily reported on Wednesday.

People's Daily Online Co Ltd, which operates People.com.cn, plans to raise about 800 million yuan ($120.8 million) by selling shares on the Shanghai Stock Exchange, the China Daily said, citing an unidentified source.

People's Daily Online aims to sell 40 million yuan-denominated A-shares in Shanghai at 15-20 yuan apiece in the IPO, making it the first news website to go public in the domestic market, the newspaper said.

People's Daily Online is now in the final stage of bringing in strategic investors. It has struck deals with deep-pocketed investors including China Mobile, China Unicom, China Telecom, China Life Insurance and some domestic private equity firms, the China Daily said.

People's Daily will use the IPO proceeds to expand its online services, the report said.

Last month, People's Daily launched its own news search engine Goso.cn to compete with larger rivals such as Baidu Inc in the lucrative online search market.

"We aim to build People.com.cn into an internationally recognized website," Zhang Yannong, president of People's Daily, was quoted as saying by China Daily.

The central government has said it will encourage 10 state-backed news websites, including People.com.cn, Cntv.cn and Xinhuanet.com, to go public as a way to accelerate reform at these companies to achieve greater efficiency and profitability, China Daily said.

People's Daily Online booked a net profit of 22 million yuan in 2009, with a revenue of 190 million yuan from its core business, the report said.

China Daily said top Chinese brokerage Citic Securities will underwrite People's Daily Online IPO.

($1=6.624 Yuan)

(Reporting by Soo Ai Peng; Editing by Jacqueline Wong)