The US government banned Google from providing Huawei its own services in May 2019. This led to the fact that, in new smartphones Huawei, many applications of the American giant no longer use. The scandal between Huawei and the US government meant abandoning the most important thing – Google Play. Many were waiting for the consequences of these actions, but they became noticeable already in the fourth quarter of 2019. Then the shipments of smartphones Huawei fell by 7%, and this is a surprisingly strong drop against the background of constant growth in the past.
Chinese companies have declared war on Google?
After the refusal of services, Google Huawei officially announced that it would never return the applications of the American giant to its own devices again, even if Google agrees to such an adventure. Probably, Huawei is seriously outraged that an open war was started against her, however, declaring this, of course, the leadership of the Chinese giant is thinking about the future. The company hopes that the global market can exist without Google Play.
Huawei offers its own services, for example, the AppGallery app store (not so long ago, the company started paying developers to publish apps in this store), which should become a worthy replacement for Google Play. However, so far these are just words, because there are only 15 thousand applications in the store Huawei, while there are millions of them on Google Play.
All would be fine, but other Chinese manufacturers come into play: Xiaomi, Oppo and Vivo. The companies, along with Huawei, have become part of the Global Developer Service Alliance (GDSA), as reported by Reuters. The alliance will aim to create a platform for simplified publishing of games, music, films and other applications to the stores of these brands. They took this step in order to overcome the monopoly on the market in the face of Google with its services. It's amazing how another company can lose billions of dollars to the actions of one company. And this certainly needs to be prevented, as the leaders of large Chinese companies are well aware.
GDSA is slated to launch in March this year, and the alliance's prototype site says the platform will cover nine regions, including India, Indonesia and Russia.
In 2019, Google earned $ 8.8 billion on its own services from the 30% commission it takes on every purchase. And this certainly shouldn't please app developers. At least, this is what the alliance members hope for, who will certainly offer them a lower percentage. For example, in AppGallery, the commission is only 15% – that's half what Google asks.
AppSore vs Play Store vs AppGallery
It is also interesting that in total, these four companies account for 40.1% of global smartphone shipments in the fourth quarter of 2019.
Huawei, in addition to the AppGallery app store, may in the future offer its users a full-fledged HarmonyOS operating system with a microkernel. The presence of a small core and modular architecture will allow Huawei to use this system in many different devices: refrigerators, smartphones, smart watches, light bulbs, cars, computers.
What could be the problem? And they really can arise, because the alliance, as a rule, requires investment and leadership. Which company will invest the most and which will have the most influence on various issues? This is still a mystery.
It is interesting to know what our readers think about this. Share your opinion in the comments and don't forget about our Telegram chat. It seems to me that such steps are always good, because in this case the market offers great competition, namely in it more favorable offers are born.
For example, everyone knows how the Fortnite developers decided not to release the application on Google Play due to the too high commission, and, obviously, they did not lose, because the game is still played by millions of people around the world.