Are app stores causing more fragmentation?

The app store phenomenon is proliferating. What started with Apple and the launch of its popular App Store in July is now becoming a huge trend. Firms like Google, Research in Motion, Microsoft and Palm are coming up with rival app storefronts to entice developers to showcase their applications and get consumers to purchase these apps that will enhance their devices and make certain operating systems more viable.

Couple these app stores with those of the independent players such as Handmark and you have a flood of new ways for developers to market their applications and consumers to buy apps. Of course, firms like Handmark are different from Apple and Google in that they are not tied to a certain device or operating system. However, they do operate their own app stores or will build an app store white-label for others. 

Although some believe the advent of the App Store is reshaping the mobile experience and making mobile content buying easier, I'm wondering if too much of a good thing is going to be a big problem for the industry. Already, developers are complaining they don't know where to invest their time and development dollars because there are so many rival operating systems that they can't afford to support them all. And the same goes for the app stores. Developers need to make their applications available to the largest selection of potential buyers. They also want their apps displayed in stores that offer real-time reporting so they know what applications are selling and how much money they are making. But it's impossible for most development houses to support all the app stores available to them. 

Some believe the winners will be those who provide a great app store experience. Paul Reddick, CEO of Handmark, compares app stores to any other retail distribution method where the better retailers will win and the weaker ones will lose. "Whoever builds the best store will succeed," Reddick says.

Nevertheless, there is a growing fear among some in the industry that in the rush to open competing app stores, consumers will get confused, particularly if they have a poor app store experience. It reminds me a lot of the early days of buying content on the carrier deck. When purchasing content required too many clicks and took too much time, consumers gave up and then were skeptical about trying it again. Let's not make the same mistake twice. --Sue [1]