The rise and fall of the “app store” model

At present, the concept of "application store" that everyone talks about originates from Apple's App Store, which was originally just an application service platform based on Apple mobile phones. Later, Google borrowed Apple's model and operated it openly on its own Android platform, forming an industrial chain based on the application store.

Based on the iPhone's application store, third-party application software services are provided to iPhone users, which pioneered the organic integration of the Internet and mobile phones and constructed a new mobile software business model. It changed the previous inherent model of SP push and operator bundling, activated the interaction between platform providers, developers and users, and formed a recyclable industry value landscape.

It can be said that the creation of the App Store business model is Apple's contribution, and its prosperity should be attributed to Google's Android ecosystem. Although Apple has made a significant contribution to the construction of the App Store, judging from the current market distribution, the Android application ecosystem based on the Google system is more active. On the one hand, this is due to the closed nature of Apple's ecosystem, and on the other hand, it is because Android encourages the technical intervention and profit distribution of third-party platforms based on its open strategy.

Before the emergence of the software distribution model of the app store, most applications needed to be installed on users' mobile phones through intermediaries such as mobile terminal manufacturers or operators, SP/CP, and developers had to pay not only technical costs for this. Data shows that before the app store model, the intermediary links of traditional mobile software distribution once accounted for 60% of the software cost. This dilemma has caused the mobile software industry to fail to reach the level of activity of PC software for a long time, and the industrial ecological chain cannot be established.

The emergence of the app store model has opened up a direct channel between mobile software developers and users, making the development, release and sale of mobile software extremely simple, greatly lowering the threshold for people to enter the field of mobile application software. As Android transforms Apple's monopoly strategy, the app store has truly become an open business system, promoting the rise of third-party platform providers. Since then, the mobile software industry has truly risen, the industry model has been differentiated simultaneously, and the industry ecosystem has gradually become clear.

Given the closed nature of Apple's system application distribution, this article's analysis of the "App Store" model will focus mainly on the Android system.

The differentiation of the “app store” model

Different from the traditional mobile software distribution model, the application store model involves all levels of the mobile industry chain, including mobile terminal manufacturers, operating system providers, communication operators, CP/SP service providers, advertisers, third-party application distribution platforms, application developers and users.

The application store model involves almost all members of the entire mobile Internet industry chain, including terminal manufacturers, operating system providers, operators, CP/SP, developers, users, and advertisers. Generally speaking, based on the leading manufacturers of application store service providers, the current business models of domestic application stores can be mainly divided into three types: third-party platform model, operator model, and manufacturer model. The following will select representative manufacturers to introduce their distinctive "application store" models.

Third-party platform model

Among these three app store models, the third-party platform model is the mainstream, mainly represented by Internet service providers such as Baidu, Tencent, 360, and Wandoujia.

Baidu - Its subsidiaries include Baidu Mobile Assistant, Baidu Apps, 91 Assistant acquired last year, and Android Market platform resources. Currently, it has a significant advantage in the layout of third-party platforms. Among them, the most distinctive is the topic platform of Baidu Mobile Assistant's Tieba model, which allows developers to communicate directly with users through comments in the application market, opening up a new channel for platform interaction. Industry insiders believe that this shows the determination of "Baidu's distribution system represented by Baidu Mobile Assistant to firmly occupy the first place in the Android distribution market."

Tencent - WeChat, the sharp sword, has opened up a channel for its platform software such as App Bao. Among them, App Bao, a distribution platform, not only provides application download functions, but also includes mobile phone optimization, one-click rooting and toolbox functions, providing users with comprehensive mobile phone maintenance services. In addition, Tencent has also expanded the "red envelope" marketing to the platform, launching a "red code storm", which can be said to be innovative.

360 Mobile Assistant – Inheriting the free gene of 360 Antivirus, it launched “free traffic” service by setting up “free traffic” area and “Seal Plan” service, attracting users with tangible benefits. At the same time, the security of 360 Mobile Assistant is at the same level as its desktop version, using the safest and most reliable mobile phone resources to create platform advantages.

Wandoujia – Founded in 2010, a year when Android market share rose rapidly. After Baidu acquired 91 Wireless, one of Wandoujia’s biggest competitors in the application distribution market, for $1.95 billion, Wandoujia became one of the few remaining independent third-party application distribution platforms. Wandoujia has acquired deeper data mining capabilities, laying an important foundation for “mobile content search”. In addition, Wandoujia’s in-app “chase and watch” and other precise search functions provide video websites with a new distribution and promotion model.

UC – relying on the massive number of users of its browser products, attempts to build a bridge between mobile Internet developers and 500 million users. At the same time, it cooperates extensively with operators, terminal manufacturers, other Internet companies, and developers, not only providing an outlet for content and services, but also providing an entrance for applications and games. Between the entrance and exit, it plays a different role than the APP-based application store. Through web application, application bookmarking, interface plug-in, etc., it explores new forms for the future of applications.

Operator Model

In the operator model, the distribution platforms of China Unicom, China Telecom and China Mobile are the main ones. Here we take China Unicom's "Wo Store" as an example.

"Wo Store" is China Unicom's application software platform. As a new application sales model, it is mainly composed of China Unicom, developers and users. Unicom plays the role of resource provider, network operator and application distributor, and is mainly responsible for the creation of the Wo Store platform, the establishment of the developer community, distribution settlement and channel construction. Developers sign contracts with Unicom to upload applications and share profits, and have the right to set prices and settle in real time. Users can consume and download applications through Unicom's PC official website, mobile portal, client, etc.

As the earliest Chinese 3G network operator, China Unicom has gathered a group of loyal users who focus on data services and application consumption. In the future, it will be able to deeply integrate the "Wo Store" platform with China Unicom's data service business and launch package-based application services, which will have broad prospects.

Mobile phone manufacturer model

In the mobile phone manufacturer model, there are mainly brands such as Xiaomi, Lenovo, Samsung, and Meizu. The application stores of these hardware manufacturers have natural terminal and channel advantages, allowing their own applications to be bundled with hardware for sale, as built-in software that comes with the mobile phone, and presented to users at the first time. Buyers of the application stores produced by hardware manufacturers themselves are usually fans or supporters of their brands.

Xiaomi - "Xiaomi Store" relies on Xiaomi mobile phones and accumulated user resources, not only occupying a large number of application distribution resources, but also using Xiaomi MIUI desktop plug-ins to form a siege on users and other application platforms. At the same time, Xiaomi, which is well versed in social media marketing, also does not miss the opportunity to leverage social resources on the application platform. When sharing the application promotion method, it firmly grasps the "user's G-spot" and meets the needs of users.

Lenovo – In line with the localization concept of “Le Store”, Lenovo has continued its consistent Chinese strategy from the beginning, providing applications that are in line with Chinese people’s habits. At first, Le Store was not taken seriously by CPs, but through the strengthening of user experience and operation, high-quality APPs were gradually introduced. Currently, Lenovo is planning to vigorously develop local application development in China through the centralized support of important channels and a large amount of funds, so that users can see the top Chinese applications at a glance.

Summarize

From Apple's dominance in its own app store to Android's full opening of the industry ecosystem, app stores have gone through a journey from traditional closure to open competition. During this journey, the positioning of each link in the industry has gradually become clear, and the stakeholders at each node are also playing their due role.

Whether it is the innovation of the app store by third-party platforms or the traditional transformation led by operators and mobile phone manufacturers, they are all depicting the future of the app store industry model. It is foreseeable that the future app store industry chain will move towards a more open, intelligent and diversified direction.