In a significant shift, xiaomi has announced that it will replace its proprietary app store, GetApps, with PhonePe's Indus AppStore for its customers in India. This move, scheduled for january 2024, marks a major milestone for PhonePe and signals a recalibration for the Chinese hardware giant in one of its largest international markets. It also underscores the growing influence of local players in the competitive indian tech ecosystem.
PhonePe’s Major Win
PhonePe, which is best known for its UPI-based payment app, has been making strategic inroads into the indian app ecosystem with its Indus AppStore, launched in february 2024. With Xiaomi’s adoption of the Indus AppStore, PhonePe gains a substantial boost in its bid to challenge Google’s dominance in India’s mobile app market.
The deal is a major win for PhonePe, backed by global investors such as Walmart, General Atlantic, and tiger Global, as it provides the startup with access to Xiaomi's vast user base in the country. xiaomi, the second-largest smartphone vendor in india after Vivo, has shipped over 250 million smartphones and 100 million other devices in the country since it first entered the indian market in 2013. The partnership could enable PhonePe to expand its reach and offer a more diversified platform to Android users, particularly at a time when many businesses in india have grown increasingly vocal about Google’s market practices.
Xiaomi’s Strategic Shift
For xiaomi, the switch from GetApps to Indus AppStore represents a significant pivot in its approach to india, one of the company’s most important global markets. The company has been navigating a series of challenges, including a scandal related to illegal remittances that led to the wind-down of its financial services business in 2022, as well as declining market share amid rising tensions between india and China. In recent years, Xiaomi’s once dominant position in the indian smartphone market has weakened, with competitors like Vivo and Realme gaining ground.
Despite these challenges, xiaomi has continued to perform well in india, but the company’s decision to replace its app store is part of a broader strategy to recalibrate its presence in the country. By embracing a local alternative to google Play, xiaomi is likely hoping to mitigate some of the regulatory and market pressures it has faced in recent years while also appealing to the growing segment of indian users and developers dissatisfied with Google’s app store policies.
The Rise of local Alternatives
PhonePe’s Indus AppStore seeks to address several of the key concerns raised by indian developers and businesses about Google’s Play Store. The tech giant has faced mounting criticism in india, with complaints about its high commission fees — up to 30% on in-app transactions — and its restrictive policies on third-party payments. By offering a more developer-friendly platform, PhonePe’s Indus AppStore aims to provide an alternative to Google’s Play Store that is more attuned to the needs of indian developers and consumers.
One of the key features of the Indus AppStore is its first-year no listing fee, which significantly lowers the barrier for app developers to list their apps on the platform. Additionally, the store supports third-party payment providers, allowing developers to bypass Google’s payment system, which has been a point of contention for many businesses in India. The platform also offers local language support and dedicated customer service, further enhancing its appeal to indian users.
Google’s Dominance Under Scrutiny
india, with its massive base of Android users, has long been a key market for Google. However, increasing scrutiny of Google’s app store practices in the country has given rise to local challengers like PhonePe and others. The regulatory environment in india has become more favorable to alternatives to google, especially with the indian government’s push for more local autonomy in the tech space. Developers have complained about the high fees charged by google and the limitations on using third-party payment systems for in-app purchases.
The entry of PhonePe’s Indus AppStore could serve as a significant step toward breaking Google’s hold over the indian app ecosystem. By providing more flexibility, lower fees, and local support, the app store could attract a growing number of developers and users who are looking for an alternative to the google Play Store.
What This Means for the indian Tech Ecosystem
The replacement of Xiaomi’s GetApps with Indus AppStore is part of a broader trend in India’s tech ecosystem, where local players are increasingly stepping up to challenge the dominance of global giants like google and Apple. india, with its vast and growing mobile user base, has become a battleground for wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital services and platforms, and this shift highlights the growing influence of homegrown alternatives.
For xiaomi, this is not just a business decision but also a sign of its strategic pivot in India. The company has already faced several hurdles in the country, and this move could help it regain some goodwill by aligning itself with a local player that is gaining popularity in India. For PhonePe, this partnership opens up new opportunities to expand its app ecosystem, especially with the indian government’s growing support for local tech companies.
As the indian app market continues to evolve, this partnership between xiaomi and PhonePe could pave the way for more localized solutions that better meet the needs of indian users and developers. Whether this move will succeed in challenging Google’s dominance remains to be seen, but it is undoubtedly a step toward reshaping the future of India’s mobile app landscape.
click and follow Indiaherald WhatsApp channel