Third-Party App Stores Face Mixed Success Post-Apple Changes
Starting in 2024, Apple has permitted third-party app stores for iPhones and iPads within the European Union, a move that has not yet sparked the anticipated influx of new revenue for developers. Setapp, which aimed to capitalize on this shift, shut down earlier this year, citing the complexities of Apple's EU business regulations. Meanwhile, Epic Games launched its own mobile store in August 2024, but it has also struggled to make a significant impact in the market. In contrast, indie storefronts like AltStore and Skich are thriving.
AltStore cofounders Riley Testut and Shane Gill are expanding their reach after securing $6 million in funding from Pace Capital. They aim to introduce AltStore to more countries, while Skich reports impressive growth, exceeding 700,000 downloads and attracting over 100,000 new users monthly. Each store offers distinct approaches; AltStore focuses on 'cool indie apps,' whereas Skich is dedicated solely to games.
Skich originated from CEO Sergey Budkovski’s desire to address the shortcomings of the App Store, particularly in game discovery. He argues that the App Store prioritizes popular or paid-for placements, failing to connect players with games they would genuinely enjoy. Budkovski states, "We built Skich to solve that problem." The self-publishing model of AltStore provides developers with the freedom to innovate without stringent oversight, allowing them to establish their own business models without incurring additional fees.
Budkovski highlights a significant partnership with Xsolla, which will enhance Skich's developer payouts by managing payment operations starting in July. This collaboration aims to eliminate previous obstacles related to payment infrastructure for alternative app stores, offering a competitive commission rate of 15%, well below the industry standard of 30%.
While neither Gill nor Budkovski disclosed specific revenue figures, they hinted at potential updates later this year. Budkovski emphasized the importance of tackling the discovery issue, noting that the growing number of games, fueled by AI advancements, complicates discoverability. Skich’s recommendation engine categorizes games into 280 genres, vastly exceeding the App Store's offerings. He claims that Skich users download five times more games monthly compared to their App Store counterparts, with around 50% going on to download additional titles from the same developer.
Why it matters
Gills plans to expand AltStore into Brazil soon, anticipating rapid growth in that market. He views the potential for alternative marketplaces in the US as a significant opportunity for developers. With John Ternus stepping into the role of Apple CEO on September 1, Gill expressed hope for changes in the iOS ecosystem. He noted that if Ternus were to acknowledge the benefits of third-party stores, it could represent a pivotal shift, similar to Google's recent embrace of alternative platforms.
Original source
MobileGamer.biz
