Google Announces Paid Apps For Smartphones

Starting in the United States next week, Google Inc will allow developers to sell applications for its Android cell phone operating system. Google hopes the move will steal part of the smartphone market away Apple Inc, who has dominated the field.
The announcement signaled Google’s commitment to catch up with Apple in the lucrative smartphone arena, even as the search engine giant pulls back on other initiatives like broadcast radio.
In a blog post on Friday, the company said its Android Market will begin by carrying paid applications from developers located in the U.S. and Britain, but has plans to open the field to companies in France, Spain, Germany, Austria, and the Netherlands before the end of the quarter.

Until now, the Android Market has only featured free applications. By opening up to paid applications, large developers such as Electronic Arts Inc will likely expand their mobile phone games to the Google operating system.

Sales for smartphones, which allow users to search the Internet, play games, listen to music, and send email, have increased by 22.5 percent in last year, amid a cell phone market that saw sales decline 12.6 percent overall, says research firm Gartner.
According to analyst Rob Enderle of the Enderle Group, smartphones are often defined by the availability of applications on that cell phone’s operating system.

"It's what's providing that extra value and getting people into the stores," he added.

Apple expanded the horizons for its iPhone by encouraging developers to create free and paid applications for its product. There are currently 1,000 applications that can run on Android, said a Google spokeswoman. Users of the Android operating system will be able to purchase applications through Google’s Checkout payment product.