I expect Google won't try to profit from any 3rd party Android applications - i just dont think it's there style. If anything i imagine there will be a revenue system in place to pay the application owners.
Here's a quote from Richard Miner, one of Android's key technical staff from back in November 2007.
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"For Android, there is no built-in business model," Miner stated flatly during our phone conversation. "The answer might not make sense, but basically, this is all going to be open sourced. For us, strategically, it's key to have strong support in the mobile world." He continued, "As far as monetizing it -- we're more focused on delighting users before we figure out how to throw ads in front of them."
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IMO Google's plan is use the Android OS to gain strong foothold in the soon-to-be-massive mobile internet arena, and then leverage their Android platform to push their mobile advertising network.
Also if you want to peer a little deeper into the business models of actual Android applications, here's a nice little thread from google groups.
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If we develop a handy utility or game or whatever to run on Android what is the intention for the business model for this:
* Is the idea that it is all just a free-for-all?
* Are we expected to make our own arrangements to sell the app from our sites or Handango or whatever?
* Is there going to be some market place where users can pick and choose the apps?
* Is there going to be some mechanism for promoting apps to users?
* Are there going to be bus dev people for us developers who will help get apps built into Android devices as they are shipped?
* How can we protect our apps from piracy?
* If our app gets popular will Google buy us? :-)
Any other guidance as to what to expect would be great.
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Excellent question, most people are probably hoping to get the development in so that Google blesses their work with some prize money and recognition and/or a gig for the team. Developing applications should have some type of business model in mind (say a subscription, free application but pay-for-premium plug-ins, etc.).
Admittedly, some type of commerce functionality should be a by-product of what-ever application that is developed. It is hard to be truly altruistic and create the absolute best application for this platform and at the same time try to figure how to extract cash from the customers that will use it in the first place.
The major players, Google, the Service Providers and the Media corporations have got their ducks in a row and are in the best
position in this race to win with the cash in their coffers. They are betting that the developers (which they do not initially have to hire), will provide them with the next big cash cow, when it does start gaining momentum after the application has been developed and gained the proof of concept they are looking for, then, and only then, will the powers that be consider placing their bets.
Any team of developers should consider this the new business model of the times after all why take risks hiring developers to develop applications that have not been market tested, when all the power players have to do is sit and wait for *all* the works to come to fruition and then put the carrot on the stick for the asses to follow.
My advise is two-fold, build the application *with* a business plan in mind from the beginning so when the Devil wants to negotiate one will have more leverage in the negotiating process.
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