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Where Amazon Is Winning in Mobile

Amazon.com has minuscule market share in selling mobile apps, and the company’s long-awaited phone has yet to appear after years of work. But Amazon is nevertheless becoming a mobile juggernaut in an increasingly important realm: services that store and process data for apps.

Despite competition from Google and Microsoft, Amazon dominates the business of selling app developers storage, processing power and tools for sending messages and pinpointing locations, according to research firms and dozens of app developers. A host of companies that help developers build for multiple operating systems at once—like Parse, now owned by Facebook—have chosen to plug into Amazon’s technology over Google’s and Microsoft’s. Apps like music service Spotify and Yelp, which offers local reviews, depend on Amazon.

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“The only company that I really could see challenge Google and Apple as far as their app store dominance would be Amazon, given what they have already in the cloud,” says venture capitalist Jeff Fagnan.