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

  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default 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

  2. #2
    Imagine that. Even with androids success they still are waaaaaay off par compared to their market share.

  3. #3
    This would be considered a positive thing, it means there are probably a lot more free apps out there and not just crappy ones, premium apps. IE; Angry Birds is free for Android users, being just one example. I also find apps to be alot cheaper for the most part on the Android Market, yet another bonus to being an Android user. After this shouldn't be a surprise considering how overpriced Apple products are.

  4. #4
    Quote Originally Posted by bry2k2 View Post
    This would be considered a positive thing, it means there are probably a lot more free apps out there and not just crappy ones, premium apps. IE; Angry Birds is free for Android users, being just one example. I also find apps to be alot cheaper for the most part on the Android Market, yet another bonus to being an Android user. After this shouldn't be a surprise considering how overpriced Apple products are.
    Did you even read the article? The top 50 Android apps have a higher average price than iOS's top 50.

    50 Apps is a big list.

    Angry Bird also has a free version on iOS. What's your point?

    From a consumer point of view, more free apps is good. From a developer point of view, the lack of a possible return for their effort only deters them from creating apps for that platform. So no, you don't win in the long run, because you literally get what you pay for. You wouldn't work for free, so don't expect someone else to.

  5. #5
    It makes you wonder since your not limited to the android app store if the downloads are counted from "other" web sites lol

  6. #6
    The article is ********, I used to be an apple user and found the average price of apps nearly 5 dollars or higher, the article author needs to recheck his numbers. Angry Birds was not free initially so again Apple is following suit to Android, thats my point, apple playing catch up yet again.

    and no 50 apps is not a big list considering there are hundreds of thousands of apps out there and more then half of them are indentical is some way or feature.

    If the developers are experiencing a lack of return they better develop decent apps or no ones gonna buy them, especially if they are overpriced. I have yet to see a crap app that was free that served a good purpose on the Android Market.

    Apple also takes more share from its developers so they have to charge more or they get **** all, thats the way apple operates.

    Quote Originally Posted by nakamura View Post
    Did you even read the article? The top 50 Android apps have a higher average price than iOS's top 50.

    50 Apps is a big list.

    Angry Bird also has a free version on iOS. What's your point?

    From a consumer point of view, more free apps is good. From a developer point of view, the lack of a possible return for their effort only deters them from creating apps for that platform. So no, you don't win in the long run, because you literally get what you pay for. You wouldn't work for free, so don't expect someone else to.

  7. #7
    Ok, you all realize that Neither apple nor Google control the price or quality of there apps, and these differences only reflect on the OS's ability to decrease fragmentation and create a good consumer market. And the majority of Apples App store apps are 99 cents of free, and are usually much higher quality, and unified in terms of UI then Android Market apps. Of and by the way, Apple does't play catch up as much as you may think, the iPhones lack of 4g, and NFC ect is because they are new, unrefined technology, and in terms of software, iOS has always been way cleaner and easier to use.

  8. #8
    Livin the iPhone Life sziklassy's Avatar
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    Quote Originally Posted by ByteArt View Post
    iOS has always been way cleaner and easier to use.
    I never understand the ease of use thing. Are people using these OSs all idiots? Wjat is difficult about Android? Or is everybody just regurgitating some BS someone said at one point in time a few years ago?

    Quote Originally Posted by nakamura View Post
    Did you even read the article? The top 50 Android apps have a higher average price than iOS's top 50.
    This is a ridiculous comparison unles you sit down and look at each and every free app.

    Example, the top 50 apps in iOS are 99 cents a pieces, even spread, so average is 99 cents. Android has an app in the top 50 that sells for 300 bucks and the other 49 sell for 99 cents a piece (these are theoretical numbers). BAM. Your average instantly skyrockets to $7 per app and that statistic instantly becomes useless.

    Considering a lot of the top paid apps in Android cannot be found in iOS (widgets, backup applications, overclocking/underclocking applications) the comparison serves to be EVEN MORE pointless.

    EDIT: So I took a quick look at the top 50 apps in the android appstore. Well over 50% of them fall into the category of either "not on iOS" or "would only be found in cydia" which obviously doesn't fall into these statistics.
    Last edited by sziklassy; 11-24-2011 at 02:15 AM.
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  9. #9
    Quote Originally Posted by sziklassy View Post
    I never understand the ease of use thing. Are people using these OSs all idiots? Wjat is difficult about Android? Or is everybody just regurgitating some BS someone said at one point in time a few years ago?
    No, I'm just talking about iOS's simplicity, no widgets, no pinning apps, and a unified, simple UI throughout native and tired party apps. Everything in iOS looks the same and works the same, and there is virtually no fragmentation or viruses so every app that is sold works with every device.

  10. #10
    Livin the iPhone Life sziklassy's Avatar
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    Quote Originally Posted by ByteArt View Post
    No, I'm just talking about iOS's simplicity, no widgets, no pinning apps, and a unified, simple UI throughout native and tired party apps. Everything in iOS looks the same and works the same, and there is virtually no fragmentation or viruses so every app that is sold works with every device.
    I understand what you are saying now. Thanks for clarigying. It always irks me when I hear people say iOS is "easier to use". I just don't think that statement has any meaning. When comparing layouts and how one would do simple things like install an app, make a call, browse the web, etc, the two OSs are remarkable similar from a user experience standpoint.

    I also don't get why iOS users quote widgets on Android as a "bad" thing. If you don't want widgets, you are certainly not forced to use them.But, if you want something other than a simple grid of icons, you have widgets at your disposal.
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------
    I once prayed to God for an iPhone, but quickly found out He didn't work that way...so I stole an iPhone and prayed for His forgiveness.

    A dog is the only thing on earth that loves you more than you love yourself. - Josh Billings

  11. #11
    Quote Originally Posted by sziklassy View Post
    I understand what you are saying now. Thanks for clarigying. It always irks me when I hear people say iOS is "easier to use". I just don't think that statement has any meaning. When comparing layouts and how one would do simple things like install an app, make a call, browse the web, etc, the two OSs are remarkable similar from a user experience standpoint.

    I also don't get why iOS users quote widgets on Android as a "bad" thing. If you don't want widgets, you are certainly not forced to use them.But, if you want something other than a simple grid of icons, you have widgets at your disposal.

    -img_0146.png

  12. #12
    Quote Originally Posted by ByteArt View Post
    -img_0146.png
    That's a sweet theme! What's it called?

  13. #13
    Quote Originally Posted by Holyloktar View Post
    That's a sweet theme! What's it called?
    Legacy, its in beta right now but its coming out soon (this friday i think)

  14. #14
    Quote Originally Posted by bry2k2 View Post
    The article is ********, I used to be an apple user and found the average price of apps nearly 5 dollars or higher, the article author needs to recheck his numbers. Angry Birds was not free initially so again Apple is following suit to Android, thats my point, apple playing catch up yet again.

    and no 50 apps is not a big list considering there are hundreds of thousands of apps out there and more then half of them are indentical is some way or feature.

    If the developers are experiencing a lack of return they better develop decent apps or no ones gonna buy them, especially if they are overpriced. I have yet to see a crap app that was free that served a good purpose on the Android Market.

    Apple also takes more share from its developers so they have to charge more or they get **** all, thats the way apple operates.

    I AM an Apple user and you're completely incorrect about the average price of apps. Here's a screenshot of the app store's top 50 paid apps. I highlighted the only 5 of the 50 that are over $.99.

    -itunes.png

    Also, I'm not sure how the price change of Angry Birds is an example of Apple playing "catch up". You do realize that Apple doesn't develop Angry Birds, don't you? If you're upset at the pricing discrepancies of Angry Birds across multiple platforms, I'd contact Rovio as they develop and price Angry Birds as they see fit.

    And Apple doesn't take a larger share from developers. Developers for Android or iOS both receive 70% from each sale (Google Android Market vs. Apple App Store | Aaron Pava | CivicActions). Also, you say that Apple developers have to charge more because Apple takes more. We've already shown that Apple doesn't take more, but let's just assume that they did. The article clearly points out that the Apple Appstore has paid out almost $3.5 billion to developers vs. the Android appstore's $239 million. While it doesn't show just how many apps were sold on each platform, don't you think the increase in number of applications sold through Apple would offset the smaller amount of income made per app (which doesn't exist, as we've already talked about)? Walmart makes a pretty good living off of lower revenue with higher volume. Couple all this with the fact that Apple does NOT take a higher cut than Google and is it any wonder why so many developers would rather build iOS apps? That's obviously where the money is at right now.

    Do you want to stop now? You're not doing so hot in the accusation department. There's no need to get upset at the fact that Apple has a winning business strategy that's working for them (and the developers) right now. I hope Google catches up. Competition is always a good thing.
    Last edited by stevelucky; 11-24-2011 at 03:36 AM.

  15. #15
    Quote Originally Posted by stevelucky View Post
    I AM an Apple user and you're completely incorrect about the average price of apps. Here's a screenshot of the app store's top 50 paid apps. I highlighted the only 5 of the 50 that are over $.99.

    -itunes.png

    Also, I'm not sure how the price change of Angry Birds is an example of Apple playing "catch up". You do realize that Apple doesn't develop Angry Birds, don't you? If you're upset at the pricing discrepancies of Angry Birds across multiple platforms, I'd contact Rovio as they develop and price Angry Birds as they see fit.


    You missed the point completely, it was on the app store, hence your an apple user, hence your using their product, hence your playing catch up. If your on the apple bandwagon your playing catch up.


    And Apple doesn't take a larger share from developers. Developers for Android or iOS both receive 70% from each sale (Google Android Market vs. Apple App Store | Aaron Pava | CivicActions). Also, you say that Apple developers have to charge more because Apple takes more. We've already shown that Apple doesn't take more, but let's just assume that they did.

    Thanks for stating the same thing twice in one sentence, did you fail english in school?

    The article clearly points out that the Apple Appstore has paid out almost $3.5 billion to developers vs. the Android appstore's $239 million. While it doesn't show just how many apps were sold on each platform, don't you think the increase in number of applications sold through Apple would offset the smaller amount of income made per app (which doesn't exist, as we've already talked about)?

    There are quite a bit more apps in the app store hence the difference in payout to developers, hence your difference in numbers, are you just waking up or something? Also there are plenty of articles using a google search that state Android has a land slide on free apps, this is the developers choice so don't start some crying game that users expect developers to code for free.


    Walmart makes a pretty good living off of lower revenue with higher volume. Couple all this with the fact that Apple does NOT take a higher cut than Google and is it any wonder why so many developers would rather build iOS apps? That's obviously where the money is at right now.

    Do you want to stop now? You're not doing so hot in the accusation department. There's no need to get upset at the fact that Apple has a winning business strategy that's working for them (and the developers) right now. I hope Google catches up. Competition is always a good thing.
    Apple is far from a winning strategy, doesn't take much to bully companies around with piss poor business ethics, attempting to push them off store shelves because they offer inferior products that simply do not compete with the competition. By the way, how long has that nasty battery issue been going on, seems about a month or so for some users. Have they bothered to plug that nasty security hole on the nice shiny ipad 2. Ya thats some grade A support.

    You seem quite happy to be strung along with apples half assed upgrades every year while other companies strive to bring the newest in technology with ever release, so please by all means keep bolstering apples app store income, after its coming out of your pocket not mine. This whole discussion really means nothing, the article is completely invalid as to who is the better company or not, google's market is not ever going to be in danger of folding, as it is backed by google's giant pocket book. It seems odd that apple sites like this have to post stories attempting to portray the competition as if it is meaningless to the mighty apple and yes im being sarcastic.

  16. #16
    Quote Originally Posted by bry2k2 View Post
    Apple is far from a winning strategy, doesn't take much to bully companies around with piss poor business ethics, attempting to push them off store shelves because they offer inferior products that simply do not compete with the competition. By the way, how long has that nasty battery issue been going on, seems about a month or so for some users. Have they bothered to plug that nasty security hole on the nice shiny ipad 2. Ya thats some grade A support.

    You seem quite happy to be strung along with apples half assed upgrades every year while other companies strive to bring the newest in technology with ever release, so please by all means keep bolstering apples app store income, after its coming out of your pocket not mine. This whole discussion really means nothing, the article is completely invalid as to who is the better company or not, google's market is not ever going to be in danger of folding, as it is backed by google's giant pocket book. It seems odd that apple sites like this have to post stories attempting to portray the competition as if it is meaningless to the mighty apple and yes im being sarcastic.
    Really dude. The battery issue has only affected a small number of 4s users (small compared to the number of units sold) and it has been addressed with iOS 5.01. Android hansdsets are know for their battery draining problems (why else would they give u access to it). How long have some android users been waiting on the latest version of androids os and that's if their phone even supports it. You can keep your android os and that unremovable bloat ware that the companies providing service to it install on it. Also keep getting pimped by that same company when it comes to them blessing u with the latest version of ur os. The app store is golden and android market is doing its thing but don't hate homie. also keep your latest tech because my iPhone 4s will stand toe to toe with any numbers you throw at it.

  17. #17
    Quote Originally Posted by bry2k2 View Post
    Apple is far from a winning strategy, doesn't take much to bully companies around with piss poor business ethics, attempting to push them off store shelves because they offer inferior products that simply do not compete with the competition. By the way, how long has that nasty battery issue been going on, seems about a month or so for some users. Have they bothered to plug that nasty security hole on the nice shiny ipad 2. Ya thats some grade A support.

    You seem quite happy to be strung along with apples half assed upgrades every year while other companies strive to bring the newest in technology with ever release, so please by all means keep bolstering apples app store income, after its coming out of your pocket not mine. This whole discussion really means nothing, the article is completely invalid as to who is the better company or not, google's market is not ever going to be in danger of folding, as it is backed by google's giant pocket book. It seems odd that apple sites like this have to post stories attempting to portray the competition as if it is meaningless to the mighty apple and yes im being sarcastic.
    You can tell when someone has no point or when they have been shown how dumb they are, when instead if debating one point they have to completely change the issue.

    Lol at some moron with an email address and a keyboard calling a report by Piper Jaffrey "dumb"...while providing no proof.

  18. #18
    Quote Originally Posted by bry2k2 View Post
    This would be considered a positive thing, it means there are probably a lot more free apps out there and not just crappy ones, premium apps. IE; Angry Birds is free for Android users, being just one example. I also find apps to be alot cheaper for the most part on the Android Market, yet another bonus to being an Android user. After this shouldn't be a surprise considering how overpriced Apple products are.
    Agreed.

    I've had my fair share of Android phones as well as my current iPhone.

    The one thing I really do miss about the Android-scene is the fact that a lot of the apps are free or cheaper than their Apple counterparts.

    Beyond that, I do miss the open-sourceness of the Android products, whereas Apple makes the i-Scene much more complicated to do nearly anything. I also miss my custom firmwares such as CyanogenMod and having menus pop-up on screen with one touch of a button.

    There's pros and cons to both. Needless to say, I enjoy my iPhone. The battery could be better... It could be a little better made to withstand impact, but I love it.

  19. #19
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    I wish I had seen this earlier so my comment would be at the top where it could be seen. but anyway, once again we get half the story, the half that makes apple shine. but here's the truth. Android App Revenue Only 7% of iOS Revenue? Not So Fast

  20. #20
    Quote Originally Posted by carolinamic View Post
    Really dude. The battery issue has only affected a small number of 4s users (small compared to the number of units sold) and it has been addressed with iOS 5.01

    A small number is still pretty large and no it has not been completely resolved, apple has admitted this themselves.

    . Android hansdsets are know for their battery draining problems (why else would they give u access to it). At least if/when I have a battery issue I have the option of removing it myself, not sending it off somewhere or waiting and hoping the company gives a **** to fix it.

    There are no further battery issues that I have heard of, and like apple were for the most part related to the os, some hardware

    How long have some android users been waiting on the latest version of androids os and that's if their phone even supports it. new OS is out within a month or so, my current os that resides on 90 percent of the android phones out there was absolutely amazing and contained all the latest features anyone needed

    You can keep your android os and that unremovable bloat ware that the companies providing service to it install on it.
    rooting fixes that although there was very little to be removed, also makes the phone more flexible and the manufacturers don't threaten or rush to stop users from doing it. hows your 4s jailbreak coming along?

    Also keep getting pimped by that same company when it comes to them blessing u with the latest version of ur os. your point is to lost to even think about The app store is golden and android market is doing its thing but don't hate homie.

    also keep your latest tech because my iPhone 4s will stand toe to toe with any numbers you throw at it.
    Oh you mean those numbers that mean nothing in the real world performance, you mean the extra 1 or 2 seconds your app loads faster lol, sure you can have that.

    Quote Originally Posted by Moreno53 View Post
    You can tell when someone has no point or when they have been shown how dumb they are, when instead if debating one point they have to completely change the issue.

    the person was unable to grasp the original idea i was presenting so had to move on, you are obviously in the same boat.

    Lol at some moron with an email address and a keyboard calling a report by Piper Jaffrey "dumb"...while providing no proof.
    Oh Piper Jaffrey the be all end all to providing the information we need, they can't possibly write an article that can be misconstrude or have any incorrect points in it. Get over yourself dude, the popcorn seats left a long time ago.
    Last edited by bry2k2; 11-24-2011 at 11:28 AM.

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