Why India needs its own app store?

The $500 billion-a-year app store economy is a testament to the power of mobile applications and their impact on our lives. Apple and Google control the app store landscape with their respective App Store and Google Play Store. The app store economy is a significant force in the global economy, but faces challenges related to competition, privacy, and regulations.

The High commission rates charged by Apple and Google on in-app purchases have faced criticism from developers and regulators. Concerns exist about Apple and Google's control over app distribution and potential to stifle competition.

While Apple doesn't directly disclose specific App Store profits… estimates suggest it's a significant contributor to their Services segment. Apple takes a commission on most App Store transactions, typically 30% though there is a reduced rate for smaller developers and subscriptions after the first year. App Store is a major part of Apple’s services business, and is a profit engine for the company. In 2022, it generated over $38 billion in revenue. Analysts estimate the App Store contributes a sizable portion of this.

At the same time, Google's Play Store profits are also not explicitly revealed, but here's some information to shed light: Google Play Store has a wider reach than Apple's App Store due to the prevalence of Android devices. However, the average revenue per user might be lower in some regions. Google Play has generated around $10.4 billion in gross revenue in Q3 2022. It is about $41.6 billion in 2022.

As per the report, the combined revenue of Apple + Google Play Store, that is $27 billion + $41.6 billion = $68.6 billion. However, Actual profits could be higher or lower depending on various factors.

Amidst the ongoing tussle between Indian startups and Google over billing policies, the Indus Appstore emerges as a beacon of freedom for developers.

Today, several Indian consumer-facing companies including Zomato, Myntra, Amazon, Paytm, Domino’s, Flipkart, Dream11, Swiggy and Kotak Mahindra Bank have published their apps on Indus Appstore.

Experts have called for the setting up of India's own mobile app store as a part of its ‘Digital Public Infrastructure’ after Google's action against 10 companies in India. India boasts a large pool of skilled engineers, developers, and entrepreneurs, creating a strong talent base for startups. There is an urgent need for India to come out with its own App Store / Play Store that is a part of Digital Public Infrastructure - like UPI and ONDC.

Overall, the app store economy is a significant force in the global economy, but faces challenges related to competition, privacy, and regulations.