The Benefits of the Google and Apple App Stores for Small App-Makers
In recent months, Washington policymakers have described the Google and Apple app stores as “harmful to consumers and developers,” accusing the stores of inflating prices, stifling innovation, and squashing competition. However, as the chief operating officer of a small app company, I can confidently say that these accusations couldn’t be further from the truth. The Google and Apple app stores offer immense benefits to app-makers of all sizes, and any changes to the current app ecosystem would likely hurt small app companies the most. Before legislators take drastic measures, it’s crucial that they understand how remarkably well the current app store system works.
How the App Store Ecosystem Supports Small App Businesses
Google and Apple are the driving force behind every app-based business. As a company that creates multimedia mobile apps, we rely on the smartphone-based ecosystem that Google and Apple built and continuously maintain and upgrade. With billions of people carrying supercomputers in their pockets, apps like ours have become possible to make, sell, and use. The app stores make it unbelievably easy for app developers to launch a business. With a few clicks and minimal expense, we were able to get our app into both major app stores and in front of millions of customers. Moreover, the stores allow us to change our fees as our business and needs evolve.
The Credibility and Security Provided by the Big App Platforms
One of the most significant advantages that the big app platforms provide to small app-makers like us is credibility. Consumers trust Google and Apple to ensure that our business is legitimate and that our apps are free from malware. The app stores also guarantee data and payment security, allowing us to focus on developing great apps rather than starting from scratch to create secure systems. Without this level of trust and security, it would be much harder for small businesses like ours to compete with software giants.
The Challenges of Multiple App Stores: Lessons from China
Some policymakers argue that the app ecosystem would be more competitive with numerous different app stores and platforms. However, our experience in China, where there are over a hundred app stores, taught us otherwise. More stores make the market far more difficult for consumers and app businesses to navigate. If we were to create multiple versions of our apps and deal with different platforms and rules in the U.S., it would crush our small business and thousands of others like it. Starting an app business would become a much more daunting task, requiring an entire team of developers instead of the two that are currently needed: an Android developer and an Apple developer.
Why Small App Publishers See Value in the App Store Fees
While some of the biggest app makers are suing Apple and Google over the commissions they charge on in-app fees, smaller apps like ours greatly benefit from the free-to-download and in-app purchase fee system. Our app allows people to try it for free and provides a monthly subscription option if they want to access premium features. The current ecosystem allows us to grow our business at an incredible rate, so the fees we pay to the app stores are worth every penny. A recent survey found that over 93% of Apple and Google small publishers believe they get more value from the app stores than they invest in them.
Are Google and Apple perfect? Of course not. But they have created astonishing technologies and platforms that enable millions of app makers to launch innovative products to consumers worldwide. Instead of trying to break a system that works so well for so many, lawmakers should focus on making the marketplace work even better for consumers and developers. The app store ecosystem supports small app businesses, offers credibility and security, and prevents the challenges that come with multiple app stores.
Analyst comment
Positive news. As an analyst, the market for small app-makers would likely be negatively impacted if significant changes were made to the current app store system. The Google and Apple app stores offer immense benefits, including credibility, security, and easy access to a large customer base. Introducing multiple app stores, as seen in China, would create difficulties for both consumers and app businesses. The current fee system is also beneficial for small app publishers, allowing them to grow their business. Lawmakers should focus on improving the marketplace for consumers and developers rather than breaking the existing system.
