Apple, according to a media report, is now accepting other forms of payments such as Rupay and UPI in India. The move by Apple enables customers to transfer funds to their Apple ID using domestic systems of payment. As Apple’s consumer base in India expands, the decision can lead to more profits for the company in the country. Consumer spending on the App Store rose by 22.1% in the last quarter.
App users have spent a record $64.9bn in the first half of 2021. Google Play and Apple store together have seen an increase of 24.8% in spending. Apple saw consumers spend $41.5 bn while Google play saw consumers spend $23.4bn in the first half of 2021. Google Play has exceeded in growth by 30% compared to Apple store’s 22.1%. Global consumer spending on games was $44.7bn. The installation rate for apps only grew by 1.7% in the first half of 2021.
Google has announced a new offer for developers called the Play Media Experience Program. The devs are required to integrate their apps with all platforms supported by Google like its WearOs for audio, Android Auto, Android TV, and Google cast for video. The commission will be slashed to 15% for the first $1 mn in revenue earned by an app per year, before raising up to 30%. This is the second program released by Google to reduce commissions paid by devs.
Epic Games’ Fortnite, in the last two years, has paid Apple over $100 mn in commissions, an Apple executive testified in the court. Apple removed Fortnite last year from the app store when the latter developed its own in-app payment. Epic Games filed a suit against Apple alleging the misuse of its position to force developers to use Apple in-app payment and pay 15%-30% of earnings in commission. Apple spent $1 mn in marketing Fortnite, which helped Epic to earn $700mn from the iOS version.
PhonePe has acquired Indian android store Indus App Bazaar for Rs.438 cr. An official statement by both companies is yet to be released. Indus App Bazaar serves over 100 mn users and is available in 13 Indian languages with 40,000 apps being a part of the android store. App Bazaar aims to make apps easily accessible to everyone with an enhanced app store ecosystem. To date, Indus OS has earned nearly $20 mn.
Apple saved users by stopping $1.5 bn transactions in 2020 on app store purchases by removing 1mn apps and updates breaching security protocols. It blocked 95,000 apps for fraudulent violations, rejected 48,000 for undocumented features, 150,000 were spam, 215,000 removed for privacy violation. Apple reviewed over 1bn ratings and 100 mn reviews and removed 250 mn of them. Besides, 424 mn developer accounts were rejected over fraudulent behaviors.
A lawsuit in the UK was filed against Apple alleging overcharging iPhone and iPad users. The claimants said that the 30% standard fee is excessive and unlawful. Apple said its prices are in the mainstream of those charged by other digital markets. 84% of apps are free and developers are to give a 15% commission to Apple. An estimate of 1.5 mn pounds, as per the lawsuit, has to be compensated to users who purchased anything from the app store since 2015.
Google said that from July 1, it is bringing down the service fee for Google Play to 15% from 30% for the first $1mn of revenue developers earn. The android maker, however, will continue to levy a 30% cut on revenue generated by developers beyond the first $1 mn in a year. Google’s 99% of developers are likely to see a 50% reduction in fees. Further, 97% of the apps published on the platform do not charge for the content or service they provide.