Eddie Kim's Car Locator app for the Android brought in $13,000 a month after being a featured app. It was widely cited as a Android developer success story. Sadly, it seems that this success may have petered out since there has been no followup to the March story announcing the success.
http://eddiekim.posterous.com/an-android-success-story-13000month-sales-0 even though he wrote in March that "I'll post again in a month or so with hopefully even better numbers!"
http://www.nytimes.com/2010/10/25/technology/25android.html?_r=2
Experts and developers say that is in part because the Android Market, the dominant store for Android apps, has some clunky features that can be annoying to phone owners eager to make a quick purchase. For starters, Android uses Google Checkout rather than an online payment system that more people are familiar with, like PayPal. As a result, many Android developers make their apps available free and rely on mobile advertisements to cover the cost.
http://www.readwriteweb.com/mobile/2010/10/how-android-developers-can-im...
Android developers waiting for Google to implement an official method for in-app purchases finally have some alternatives. This week, there was good news from Papaya Mobile, a mobile social platform with 3 million users. The company partnered with Zong, an international mobile payments company to offer in-app virtual goods purchases within its gaming platform.