Microsoft

A look at Windows Marketplace for Mobile, which will be on display Thursday at CTIA.

(Credit: Microsoft)

Microsoft plans to show off its forthcoming Windows Marketplace for Mobile this week at CTIA 2009, as well as its ties to the fashion world.

Microsoft's Robbie Bach plans Thursday to discuss Microsoft's take on the mobile phone application store, an old concept that is being reinvented for the smartphone following the success of Apple's App Store. Windows Marketplace for Mobile won't arrive until later this year, along with Windows Mobile 6.5, but this week the company will demonstrate how users can select, purchase, and download an application from their Windows Mobile handsets.

We've already heard a bit about Windows Marketplace for Mobile: Microsoft plans a similar revenue-sharing model as Apple, with 70 percent of application revenue going to the developer and 30 to Microsoft. The company promises that its submission process will be "transparent," in a clear dig at Apple, and it also plans to charge developers more money for multiple submissions.

Bach will announce that Windows Mobile users will have 24 hours to return any application they purchase for a full refund. Applications can be purchased on the phone or through a Web site, and billing will be handled by credit card or through the wireless carrier's bill.

Microsoft is emphasizing that it plans to give wireless carriers a chance to get in on the mobile application fun, with plans to let carriers set up a "store within a store" on Windows Marketplace for Mobile, said Aaron Woodman, a director in Microsoft's Mobile Communications business.

Woodman declined to comment on whether or not Microsoft would be sharing any of its 30 percent cut with carriers, but it does plan to let carriers have a link off the Marketplace homepage to showcase their own applications.

While Microsoft and its partners work out the details for the Marketplace, the company is also announcing a deal to let Windows Mobile users add a little bit of style to their phones. Microsoft has cut deals with two design houses--Design Museum London and Council of Fashion Designers of America--to have artists and designers create themes and wallpaper for Windows Mobile phones. Isaac Mizrahi will be the first to participate.

Microsoft has backed off plans to charge Windows Mobile developers $99 for submitting even minor updates to their applications.

Last week, Microsoft said that unless developers submitted updates to their applications within 7 days of their release, the company would charge developers $99 to get those updates onto the Windows Marketplace for Mobile application store, which is expected to debut later this year. But the company has decided to back off that policy, which did not seem like it would be all that popular with mobile developers trying to decide where to focus their attention amid lots of competition.

Now all updates or version upgrades for applications that have already been submitted to the store will be accepted free of charge, a Microsoft representative confirmed. This applies to minor bug fixes as well as second-generation releases that add new features or capabilities.

Microsoft still plans to charge developers $99 a year, plus $99 per application, to submit applications to Windows Marketplace for Mobile, though this year, developers are being allowed to submit up to five applications free of charge for that $99 yearly fee.

Charging for updates could have resulted in either developer apathy at the prospect of having to fork over $99 every time they discovered a bug, or a host of buggy applications frozen in time in order to avoid the update fees.

Windows Marketplace for Mobile is expected to launch later this year with the release of Windows Mobile 6.5.

Microsoft on Wednesday is offering up more details on its would-be rival to the iPhone's app store.

The software maker said it will charge developers $99 a year, plus $99 for each application they submit to get an app into the Windows Marketplace store. Through the end of this year, though, developers who register will be able to submit five applications at no additional charge.

The software maker defended the charge: "Microsoft will run a rigorous certification process to ensure that the end user's experience is optimal, and that the device and network resources aren't used in a malicious way," a Microsoft representative said in a statement. "This process has a significant cost and Microsoft believes $99 is an acceptable cost of doing business for (software developers) looking to get in front of millions of customers."

The software maker pledged that it will also offer developers "complete transparency throughout the application submission process" as well as direct feedback. Apple has been criticized for being slow to respond to developer questions while an application is in the approval process, as well as providing developers with little information as to why certain applications were rejected.

Developers who choose to charge for their programs will keep 70 percent of the proceeds. (Free titles will also be allowed). By comparison, Apple also gives developers 70 percent of app sales through its App Store for the iPhone and iPod Touch. Research In Motion has pledged to give developers an 80 percent cut in their forthcoming store.

Microsoft announced plans for the mobile application store at last month's Mobile World Congress. The store is set to debut with the launch of Windows Mobile 6.5 in the fourth quarter of this year.

The software maker plans to let developers start registering in the spring and begin submitting applications this summer.

Microsoft also said it was launching a sales and marketing program to help developers, though it didn't say how large that program will be.

Update at 2:17 p.m. PST, with comments from Microsoft on fate of Windows Marketplace.

Microsoft is doubling down on retail, with the launch of a second online store at the start of this year's especially critical holiday shopping season.

The Microsoft Store, which opened for business Thursday, is designed to carry the largest and most up-to-date selection of the software giant's product lines, such as Office, Windows, Xbox, and Zune.

The one-stop shop will carry Microsoft hardware too.

Microsoft currently operates its Windows Marketplace e-commerce site, which it .

There are many similarities between the two sites, but with the launch of Microsoft Store, that will change.

"With the launch of the Microsoft Store, Windows Marketplace will shut down as an e-commerce site. Marketplace will transition from an e-commerce and referral site to a Web page that will refer customers to sites such as Microsoft Store, Windows Vista Compatibility Center, and other appropriate destinations," a Microsoft spokesman stated.

Meanwhile, according to a Microsoft team blog, the Microsoft Store is also accessible to folks in Germany, the United Kingdom, and Korea. Plans are in the works to add Japan, France, Spain, and the Netherlands in the near future, as well as other countries.

Microsoft is launching its new site at a time when retailers are facing a major downturn as concerns over a recession weigh on the minds and wallets of consumers.

Online retailer Amazon.com issued a cautious note regarding holiday sales when it reported its third-quarter financial results last month, while eBay lowered its fourth-quarter forecast.

As for Microsoft...in this current climate, two sites could have possibly been better than one.