As the e-commerce boom continues, the shares of Amazon.com (AMZN) have been hitting new highs. The company now sports a market cap of a hefty $83 billion.
Besides strong customer service -- and tremendous efficiency -- Amazon.com has also been adept at consolidating markets. It's a big help to consumers.
Interestingly enough, Amazon.com is in the process of building an app store for the Android (this is according to a report in Techcrunch). This is the mobile operating system from Google (GOOG). And it has been growing at a rapid rate, with 300,000 activations per day. In other words, the market potential is enormous.
Amazon.com plans to bring uniform requirements to its store. For example, it will essentially be setting prices. No doubt, this is in line with its low-cost philosophy. At the same time, Amazon.com will require an app developer to provide a strong level of customer service.
True, the Android app store space is already crowded. However, the players are still fairly small.
So with its heft -- and loyal customer base -- Amazon is positioned nicely for an Android app store. And in light of the juicy royalties on the transactions, it should be a strong source of cash flows.