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  • Google's Android Market Earns 7% of Apple's App Store Revenue

    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.

    Source: AppleInsider
    This article was originally published in forum thread: Google's Android Market Earns 7% of Apple's App Store Revenue started by Akshay Masand View original post
    Comments 25 Comments
    1. bry2k2's Avatar
      bry2k2 -
      Quote Originally Posted by stevelucky View Post
      Wow, you just don't know when to quit, do you? You really are making this fun for me. I'm not sure how you say that what Apple has is far from a winning strategy when they have the second highest market cap in the world (just below Exxon, in fact trading places for first with them at one point). In case you're not familiar with economics, that means that they're the second most valuable company in the world. That's the definition of a winning strategy.

      If by winning you mean saturating the market giving consumers no other option, then sure we'll play along with that, again Apple started the tablet game first (in more recent years) and shoved it down everyones throat, they had no other choice so of course they bought it, makes sense.

      I do agree with you on one thing, that Apple's lawsuits are pretty lame, but that's another topic for another day. As far as the battery goes, I've owned the 4S since day one and I've had no battery issues whatsoever. I've turned off some of the location features and that made my battery life even better. Sometimes, features come at a cost (talk to just about anyone with a 4G capable phone).

      And I'm not sure if they've plugged the exploit on the iPad 2 yet or not, but I would argue that they do indeed have grade A support. Tell that to the woman who had her Iphone stolen and Apple let the theif hand it in to be repaired got a new one and walked away scott free, im not going to look the article up for you but its pretty easy to find Maybe you'll remember the article from this very site that stated that malware on Android has increased 472% since July while iOS remains nearly untouched (Apple, iPhone and iPad News | ModMyi - Android Malware Increases 472% Since July, iOS Nearly Untouched). Doesn't really make your case does it?

      That articles proves **** all, how does it measure any kind of impact to its customers?

      I don't think the point of this article is to determine who is the "better company". yes but thats what the original poster of the article is trying to make a point of but ill agree with you there.

      That's somewhat subjective. Google and Apple are quite different in the things they do. Google is primarily an advertising company (yes they do many other things, but advertising is where the vast majority of their revenue comes from) and they are VERY good at it. Apple is primarily a hardware/software company and (in my opinion) they are very good at that. What this article does note is that Apple is making boatloads more cash than Google in the mobile appstore world. That's all it addresses. So, in that area, I would argue that Apple is indeed better, at least quantitatively. Qualitatively, it's a matter of opinion. The problem with the article and the fact that it states that Android apps cost a bit more on average is that most of those apps you cannot get on iphone, they completely unique and their fuctionality for the most part is nothing like anything on the app store so really why should they be compared.

      Oh, okay. Because the exact sentence that you used was, "Angry Birds was not free initially so again Apple is following suit to Android, thats my point, apple playing catch up yet again." So, when you say "apple playing catch up yet again" you really mean the consumer, not Apple? Okay. But that's not what you said. It looks like maybe you missed your own point completely.

      Actually I didn't fail english (it was one of my best subjects) but thanks for the vote of confidence. And I might be offended if it weren't for your complete lack of capitalization, your borderline pornographic use of bold better tell everyone using bold settings they are writing porn, you clearly don't understand its function of making certain ideas or sentences stand out and make them easier to read, and frequent misspellings. You just don't recognize correct english when you see it. No big deal No i don't, because there isn't any misspelled words.

      But I'm trying to figure out where I said the same thing twice in the same sentence. you need to read more clearly then, you stated apple and google get the same amount from its developers and by stating how much google and apple get you just reiterated the exact same thingMy first sentence talks about the fact that Apple doesn't take a larger share from developers, my second sentence clarifies just how much Apple and Google each get, my third sentence states an assumption that you made, and my fourth sentence re-states the first sentence in order to setup an assumption. So I guess my first and fourth sentence kind of restate one another. Take note: that little dot (.) at the end of a string of words typically denotes the end of a sentence and the beginning of a new one. Maybe you meant paragraph (look it up)?

      I could keep going but I think you get the point. Please don't respond to this. I'm sure you're a totally cool person (no sarcasm intended at all) and you're really just embarrassing yourself. Okay, maybe that was a little mean. Sorry.

      Your just going in circles with your comments, I recommend you walk away before you get too dizzy.
    1. stevelucky's Avatar
      stevelucky -
      Quote Originally Posted by bry2k2 View Post
      Your just going in circles with your comments, I recommend you walk away before you get too dizzy.
      Oh, I'm getting dizzy alright.

      P.S. - That should be you're, nor your.

      Quote Originally Posted by bry2k2 View Post
      No i don't, because there isn't any misspelled words.
      P.P.S. - I think you meant, "...there aren't any misspelled words."

      Yeah, I guess your English is just fine.
    1. Mysterion's Avatar
      Mysterion -
      If Android were to allow App and Game purchases to be made using a gift card or debit card they would make a lot more money.
    1. DRauch's Avatar
      DRauch -
      Quote Originally Posted by Mysterion View Post
      If Android were to allow App and Game purchases to be made using a gift card or debit card they would make a lot more money.
      I'm almost certain that they do? I could be wrong, but aren't you able to link debit cards, credit cards, and various VISA/AMEX gift cards through your Google account? I just purchased a replacement iPhone screen and used my debit card on my Google account.
    1. Tidbits's Avatar
      Tidbits -
      Quote Originally Posted by Mysterion View Post
      If Android were to allow App and Game purchases to be made using a gift card or debit card they would make a lot more money.
      They do... I use my debit card all the time for purchases. It could possibly your bank blocks "online" purchases. I had that problem initially and had to call in a tell them to take it off. As long as it have a major credit card logo they'll take it. I have used a Verizon rebate card(Master Card I believe they switched to Visa now), a prepaid Visa card, and also my debit card(Visa).

      I use both Android and iOS. Most of the article is true from what I have seen. My wife prefers iOS for the "quality" of apps in the market over what is in Android. She is happy I bought her a Kindle Fire, but she wished I got her an iPad because of the apps. I may buy her one for Christmas(happy wife = happy home).