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If pay to use is the only model, lots of developers would only target developed countries.

I don't see what's stopping these developers from lowering prices for users in less developed countries.

App Store prices vary by region. Developers can have lower prices in less developed countries.

A user on my platform costs me $0.02 per year.

If you can't compete gtfo.

Your cost calculation may be off but the point about competition is spot on