A Piper Jaffray analyst recently estimated that the Android Market has made a small fraction, 7% to be exact, of the Apple App Storeís gross revenue. The statement is shocking considering that a recent report revealed that Android has captured 52% of the smartphone market during the third quarter.
The folks over at AppleInsider have quoted Munster saying the following regarding the matter:
"In other words, it appears that Apple has roughly 85-90% market share in dollars spent on mobile applications," he wrote in a note to investors. "While Google has closed the gap in terms of app dollars spent over the last year and we continue to believe Android will grow smartphone share faster than Apple, we believe Apple is likely to maintain 70%+ share of mobile app dollars spent over the next 3-4 years."
As of right now the Android Marketís paid apps constitute of only 1.3% of their total app catalog, compared to the App Storeís 13.5%. The total number and quality of apps are up for debate but it is interesting to see that the Android Market has a larger portion of free apps. Itís also important to note that the Android Marketís average price of the top 50 paid apps is $3.79 while Appleís average is $2.01. What this indicates is that Android users pay more on average per app but purchase a few number of apps in the long-term.
Munster also estimated that the average number of apps on each Android device is 34 while the average for each iOS device is 71. The estimates are based on a sample size of 200 million total Android activations as well as stats provided by Androlib (an Android application discovery tool).
Other things to keep in mind here would include Munsterís summer poll of Apple app developers at the WWDC 2011. He found that almost half of his respondents developed apps for Android as well, however all of them mentioned that they feel the iOS platform is easier to develop for and is better for monetizing an app. More recently, an analyst from Canaccord Genuity recently reported that Apple earned 52% of the handset industryís operating profits last quarter despite only having 4.2% of the global handset market share. It has also been noted that while the volume of downloaded applications on Android is expected to surpass that of the iOS App Store, the iOS platform is expected to generate $2.86 billion in app revenue compared to Androidís $1.5 billion. Apple has a strong presence which seems to be a continuing trend in the future.