Xiaomi will replace its controversial GetApps store with PhonePe’s “made in India” Indus AppStore for its Indian users. This marks a significant win for PhonePe, one of India’s leading fintech companies, and aligns with Xiaomi’s ongoing rebuilding exercise in a critical market amid growing challenges.
The update will be automatically pushed to Xiaomi devices in India starting January 2025. “The GetApps team will continue providing app installation and support services under the name Indus Services App,” Xiaomi informed users.
The Indus AppStore, launched in February 2024, is PhonePe’s attempt to challenge Google’s dominance in India’s app distribution market. Google’s fees of up to 30 percent on app transactions and restrictions on third-party payments have drawn criticism from developers worldwide.
PhonePe’s app store seemingly offers a more developer-friendly model with no platform fees or commissions on in-app payments. App listings are free during the inaugural year, with a nominal annual fee to follow. Developers can integrate their preferred payment gateways and use tools like AI-based analytics to track app performance.
Notably, Indus AppStore also includes a “Launch Pad” for startups and new apps, offering visibility and support. Unlike conventional app stores, it allows mobile number-based logins, catering to users without email accounts.
Why Xiaomi made the switch
Xiaomi’s GetApps has long faced backlash for intrusive ads and privacy concerns, with users frequently complaining on platforms like Reddit. The change reflects Xiaomi’s efforts to improve user experience and address concerns while also navigating broader challenges in India.
The Chinese smartphone maker has faced declining market share and leadership shakeups amid tensions between India and China. Its current president, Muralikrishnan B, will step down at the end of 2024, although key leaders like Sudhin Mathur (COO) and Anuj Sharma (CMO) will continue driving growth.
Indus AppStore’s challenges
Despite gaining two million downloads since its launch, the Indus AppStore accounts for less than 1 percent of India’s smartphone users. The biggest roadblock remains convincing smartphone manufacturers to pre-install the AppStore over the Google Play Store. Currently, users must download it manually, which is an extra step, often encountering warnings from Android about potential security risks.
PhonePe’s partnership with Xiaomi could change that narrative, giving Indus AppStore more exposure. For Xiaomi, the move offers a fresh start, shedding the baggage of GetApps and aligning with Indian consumer preferences, as it completes ten years in the world’s fastest growing smartphone market.
