Huawei Developers Alliance recently announced that it will implement the new Huawei Ads sharing policy in 2020, with developers going to sea receiving a high share of 90%, in order to attract developers to Huawei’s own overseas application market AppGallery. The policy will continue throughout 2020 and by 2021 the share ratio will be adjusted to 2:8, with developers receiving 80% of the revenue, after which the platform share will return to the basic 3:7.
In terms of in-house purchases, AppGallery has also introduced a corresponding discount, with developers receiving 85% of the share in the first and second years.
This is another initiative launched by Huawei to de-Android, following HarmonyOS, HMS, AppGallery and participation in the overseas version of the Hard Core Alliance. Since being “passively” added to the so-called “entity list”, Huawei has been interested in preventing the ecological impact of its own applications after decoupling from Android.
While these performances appear to be Huawei’s attack on Google, whether Huawei or Google is reluctant to see each other as competitors, Google also applied to the U.S. government on February 26th for a license to do business with Huawei again. Huawei, while friendly with Google, is clearly reluctant to bet on the uncertainty and the business of looking at the American face, choosing instead to build its own path.
Stand-in one-board axe: HarmonyOS v Android, HMS v. GMS
The road begins with the foundation, i.e. Harmony OS, and HMS.
At the Huawei Developer Conference in August 2019, Huawei Consumer Business CEO Yu Chengdong announced Harmony OS and HMS (Huawei Mobile Services) for the first time, and launched the HMS Core 4.0 mobile cloud service six months later, corresponding to Google’s GMS. On February 24, 2020, Huawei introduced HMS in full to overseas developers and users at an online launch conference in Barcelona.
In order to structure the ecology and attract developers to accept HMS, Huawei launched the Yew Star Program, which set up a RMB 1 billion incentive fund for developers and increased it to US$1 billion. Today, HMS has 1.3 million developers and 55,000 applications connected to HMS Core.
This data is included in the domestic Huawei application market data, according to the Huawei Application Market 2019 Security Report, in 2019 Huawei Application Market Applications has been installed in more than 170 countries and regions around the world more than 1.3 million developers, the cumulative annual application distribution of 210 billion, up 75% YoY, The maximum daily distribution was 1.3 billion. In terms of the number of apps on the shelf, the game came in second, with 17.88 percent.
Self-reliance two-board axe: AppGallery sets google Play for platform
As an important part of HMS, the overseas, Huawei App Market is known as App Gallery, the most famous Google Play, to take on the main app store business.
AppGallery’s challenge to Google Play is the “third-largest app store in the world”, with official figures showing that AppGallery has reached 400 million monthly worth of monthly downloads and 180 billion downloads, with the original AppGallery models installed after Huawei’s Mate30. This number will be higher in the future.
In addition, HMS also includes browser, mobile cloud, music and other family bucket products, not to be repeated here. In some of the more specific markets, Huawei will also choose to partner with the local app store to further reduce the use of Google Play to weaken the brand. In India, for example, Huawei was revealed to be in talks with the local app store App Bazaar.
Of course, AppGallery remains Huawei’s first choice to fill the gap in Google Play in overseas markets. In fact, it’s not just advertising revenue that benefits developers, but Huawei actually makes some concessions on all the shares. According to Huawei’s announced preferential policies, not just advertising, all developers receive revenue from AppGallery, including paid buy-outs and in-house purchases, which are higher than the App Store and Google Play.
For example, the education product base is 3:7, but the first year developers can even directly get 100% of the total income, the second year still has 90% of the share of income. The game category is also 3:7, but the first and second year are 15:85, only the third year to return to the basics.
According to Gizmochina, the offer will take effect on the first day of the next month after the developer signs a cooperation agreement with AppGallery by June 30, 2020. Previously signed developers will also take effect in the same month, and they will not be eligible for the offer after June 30.
Self-reliance three-board axe: advertising 1:9 points, in-house purchase only 15% to absorb the world’s developers
Not only to support its own stores and ecology, Huawei has also been impressed with the success of the “hard core alliance” overseas, joining the Global Developer Services Alliance GDSA, which is made up of OPPO, vivo and Xiaomi.
However, the position of the other three manufacturers is not as broken as Huawei’s. In a statement, Xiaomi said there was no conflict of interest between GDSA and Google Play, and that GDSA’s role was to make it easier for overseas developers to upload products to members’ own app stores. In other words, the purpose of GDSA is more to “introduce” global fine products than to “go out” of domestic masterpieces.
Just as Google’s show can’t change anything, the attitude of the rest of the alliance hasn’t affected Huawei’s determination to completely break away from GMS’s ecological self-reliance. With basic services and stores in place, Huawei is extending its reach to Google’s core business, search.
Huawei is testing a search app in the United Arab Emirates that already features most of Google’s search app, XDA Developers has revealed. Including Internet access, video, news and so on, in addition, Huawei search also comes with a number of commonly used tools in China plug-ins, including calculators, unit conversion, sports and so on. One interesting detail is that Huawei searches for weather plug-ins, using data from the China Meteorological Administration.
Due to historical developments, the presence of Google Play and GMS is rarely felt at home, but overseas, overseas Android market, GMS dominance makes it an insurmountable bump. It is also one of the killers of the U.S. threat to add Huawei to the “entity list”, withno software and no good hardware.
This also reverses Huawei’s determination to establish its own independent service ecosystem, and now Huawei has basically sacrificed its pressure-box stunt to launch an attack on Google Play, attracting developers to switch to App Gallery. The move largely resuscitates Epic Games’ strategy of stirring up the PC game distribution market, with the Epic Games Store growing rapidly after a 12:88 split in 2018, generating 108 million users and $680 million in revenue by the end of 2019.
Can the “out-of-date” App Gallery repeat this success?