Google Inc has set a floor price for all the apps on the Indian version of the Play Store after which they could be sold for as less as Rs. 10. The price floor is also applicable to in-app purchases. Prior to this decision from Google, the lowest price charged by the developers was Rs. 50.
Making apps more affordable
The price cut should be able to retain more Android users in India for Google, experts believe. The developers will be able to reach out to more users in India is what the firm is hoping, Google said in a blog post. The cut would make the apps more affordable, thus, allowing more people to buy the popular apps as the average incomes are low in the country.
The new lower price floor will make the apps more accessible, and will also help in maintaining the number of Android users in the country, Jasdeep Badyal, a mobile analyst from CCS Insight told BBC. “The majority of smartphone market share in India is taken up by Android handset makers such as Samsung, Micromax and Intex,” Badyal said. The analyst notes that the share of other platforms such as the iOS and Windows is growing due of decline in price points, making smartphones more affordable. But, the fact that the developers will be able to charge less for their app now will get them more users.
China is the biggest handset market in the world, but a recent data by two analyst firm shows the smartphone sales are falling there. So, the decision by Google Inc comes at an apt time as it will help the US firm to offset lowers sales elsewhere with more sales of Android phones in India.
Google to re-enter China
On one hand, where Google is making efforts to up its share in India, it is also planning to up its growth by re-entering China. Last week, a report from The Information noted that Google is making another attempt at entering mainland China following a five-year absence.
Citing people familiar with the firms plan, the report says Google Inc is also trying to get approval for a Chinese version of its Play Store mobile app, and extend support of a version of Android for wearable devices in China. The US firm have assured the Chinese authorities of following all the local laws, and block Play Store apps deemed objectionable by the govt.