I'm considering starting getting into Android app development as something I could do on the side until I could build it up enough to leave my current job. For those that have developed Android apps part-time or full-time, how much would a developer with several years or more Java dev (web apps and services) experience most likely make a year (at least based on your past experience in Android app development) for either/both (1) developing their own apps for sale on Android Market, and/or (2) developing Android apps for others on an individual contractor basis (not yet incorporated)?
In addition, do you have suggestions for pricing apps? The following indicates average price at ~$3.50 USD:
http://techcrunch.com/2010/01/26/android-market-pricing/ (I know it depends on the app's functionality and perceived worth to customer, but I also imagine people would be much less likely to spend $39 USD for an Android app than they would for an OS X/Windows application with similar functionality/intent.)
Finally, is it realistic to develop solely in an emulator without having a real device, and if a device is needed, what would you suggest as a lowest cost option to start with?
Initially ... sure, but if you're seriously considering making this your profession, you will only benefit by actually developing for a device you've used yourself. When you use a phone today you become aware of what you like about it, what you don't like about it, and also get a good sense for which problems have already been solved by other developers. I don't think these are things which you'll be able to get the same experience with an emulator, so if you continue to be interested in pursuing Android development after some initial tinkering, I'd say you can only really succeed by using Android as your daily device.