iOS Apps Generate 6 Times the Revenue of Android Apps

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The iOS App Shop rakes in six occasions the revenues of the Android Marketplace. Image: Distimo

The Android Market and Apple App Retailer are locked in continuous battle for the hearts and minds of mobile device users. Although Apple nonetheless holds a lead in the total amount of app offerings, its dominance looks to be diminishing. But concern not, Apple fan boys: Team iOS nonetheless holds an overwhelming lead in terms of app obtain revenue.

Distimo, an app retailer evaluation firm, compared the 200 highest-grossing apps in every single marketplace. According to a study released Tuesday, the firm located that the iOS App Retailer has produced six instances the complete revenues of the Android Market. iPhone app revenue earned four times the earnings of the Android Market, while iPad app revenue produced twice as a lot cash as Android Market app sales.

Android’s poor showing definitely isn’t for a lack of complete downloads, or for a lack of Android devices running in the wild. Google’s Andy Rubin tweeted that the quantity of Android activations is now up to 700,000 gadgets per day, and Android is the dominant smartphone OS in most of the U.S.

And whilst the iOS App Retailer has seen much more than 18 billion app downloads, Android is catching up quick: It lately crossed the ten billion downloads mark.

Distimo notes that the “freemium” model has become a dominant enterprise method for app developers on each main platforms. In this monetization tactic, apps are totally free, but developers develop income by way of in-app purchases. About half of the top rated 200 grossing iOS apps are now “freemium,” and that quantity is even larger — 65 % — for Android.

Distimo’s findings jibe with earlier reports and estimates from analysts concerning app revenues for the two respective platforms. Piper Jaffray’s Gene Munster estimated that Apple has 85 to 90 % market share in complete app revenues. This year alone, the iOS App Shop has offered developers with $ three.four billion in revenues, while the Android Industry has delivered only $ 240 million to its developers.

It is not that Android consumers really don’t have money to spare on apps or in-app purchases. A Bloomworlds study found that far more than a quarter of Android users make $ 100k or far more a year. So possibly Android users are just much less susceptible to the wiles of in-app marketing and purchases. Or possibly a greater number of young iOS customers — kids and teenagers — blithely tap away to purchase in-app upgrades. A modern Everyday Show sketch illustrated this point to hilarious effect.

Distimo vice-president and co-founder Remco van den Elzen attributes the discrepancy basically to the ease of acquiring on every single platform.

“Google has been significantly less productive in getting users to spend for apps since Google Checkout is regarded to be a lot more cumbersome than iTunes,” van den Elzen says. “More importantly, nonetheless, Apple has always been really effective in acquiring everybody to enter their credit card specifics when activating their devices. This has benefited Apple significantly, as the threshold for buying the initial application is decrease.”

The Distimo study also found one thing surprising about iOS users’ downloading habits.

“The quantity of downloads in the Apple App Shop in the US has been declining for nearly the total year,” the report states. “The lowest point coincided with the moment when the anticipation for the new iPhone was at its height in September.”

Distimo located this trend was equivalent for the iPad as properly: Downloads went down just before the announcement of a new item (in February, before the iPad 2 was launched), but went back up right away soon after (in March). Maybe the capacity to sync and store data to iCloud will adjust this trend in the long term.

iPhone, Android and iPad apps dominate the app industry space. Image: Distimo

Wired: Gadget Lab