The One Trend That Might Have Escaped Mary Meeker

December 7, 2012 10:56 am

While in many ways very comprehensive, Mary Meeker’s Internet Trends Report missed out on highlighting one growth area: The Amazon App Store.

We spotted this stat today, that the number of App downloads on the Amazon app store has grown by some 500 percent compared to 2011 (Source)
Agreed, that is on a small base (no absolute numbers published)

But here are two reasons why this is a trend worth paying attention to:

1. Amazon is making zero to negative money on these devices. The strategy is to make money by selling content. A Vibrant App Store is a key ingredient of that strategy.
As a device maker hoping to make money on content, Amazon will do all it takes to make the Amazon App Store a success.

2. Amazon’s pricing strategy on these devices will soon show a significant impact in the market and as developers see a good user base, a thousand apps will bloom. And which better company to run the ecommerce piece, than Amazon?

Given the growth rates and such promise, It is definitely surprising why Mary Meeker did not highlight this.

Remember, we are talking about a company that has been famously losing money for quite a while in many areas, and is focused on the long-term. It has the potential too, to bleed for quite a while on this before things start looking up.

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