In a nutshell: Amid growing regulatory scrutiny of Apple and Google's software distribution policies, mobile developers are increasingly voicing their displeasure with the "app store duopoly." According to a new survey, most want the mobile giants to allow alternative app stores, which could help developers reach new audiences and improve discoverability.
In a recent survey by Atomik Research on behalf of Portugal-based app distributor Aptoide, most mobile app developers expressed concern about overreliance on Apple and Google's official iOS and Android app stores. The majority also expect third-party app stores to gain significant importance over the next few years.
Out of over 300 surveyed mobile game developers from the US and UK, 84% believe that there should be more than two app stores. Apple's official app store distributes all iOS software outside of the European Union, taking a 15-30% revenue cut from each transaction. Although Android allows sideloading, Google's tightening control of the mobile operating system makes its Play Store the de facto gatekeeper of Android software.
App developers believe that being restricted to the two major stores makes discoverability difficult and increases costs. Since 70% of Apple App Store downloads come from searches, developers pay for increased visibility in search results. Over half of the surveyed developers also cite Apple and Google's fees as significant barriers to distribution. The majority, 87%, make most of their revenue from the two primary stores, but half worry that Apple and Google prioritize first-party apps and services.
However, most also believe that Apple and Google's walled gardens will not last forever, and that third-party app stores will increase their revenue. Aptoide is able to help developers distribute apps on alternative Android and iOS app stores due to the European Union's Digital Markets Act, which forced Apple to open up its operating system for European users. Earlier this year, the company appealed a $580 million fine issued by the EU over its continued enforcement of restrictive policies.
Nearly three-quarters of those surveyed expect to incorporate alternative app stores into their business models within the next five years. Roughly the same portion also anticipates that the strategy will offer double-digit revenue growth. Advantages might include access to emerging markets and large niches, improved discoverability, better content curation, and superior customer service.
Apple and Google assert that controlling app distribution enhances security. Although Google claims that sideloading remains central to Android, the company recently introduced substantial limitations to the practice due to concerns over malware. However, recent court decisions in the US, the European Union, and Australia could force the tech giants to loosen control over iOS and Android software and payment processing. Moreover, Meta, Spotify, and other app developers recently formed a lobbying partnership to promote increased competition between app stores.
Most mobile game developers want Apple and Google to open the gates, survey finds
