“Google I/O developer’s conference may have been the showcase for several new products, but developers prefer Apple iOS platform because of the ability [to] generate revenue from the platform,” Gary Krakow writes for TheStreet. “”
“Benedict Evans, an analyst with Andressen Horowitz came away from I/O with some interesting facts about Google’s Android platform, noting that despite there being more than 1 billion Android users worldwide, developers make less on Android than they do on iOS. Evans notes Google paid developers $5 billion to work on the software platform in 2013, up from $2 billion in the previous year,” Krakow writes. “Evans concludes, ‘Google Android users in total are spending around half as much on apps on more than twice the user base, and hence app ARPU (Average Revenue Per User) on Android is roughly a quarter of iOS.'”
“This can become circular: if developers believe that Android users do not pay, then their behavior will be affected – they may offer a free ad-supported app instead of a paid app, or have a lower price,” Krakow writes. “And if they decide not to support Android or support it second, then their users will gravitate to iPhone first, which becomes self-fulfilling. You can see this clearly on Android tablets – magazine apps have low use on Android so are slow to support Android, so users who want magazine apps don’t buy Android tablets.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Lone Wolf” for the heads up.]
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IDC: Android worldwide smartphone market share passes 80% – November 12, 2013
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Study: iPad users more likely to buy – and buy more – online than traditional PC users – September 29, 2011
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Apple iPhone users buy many more apps, surf the Web much more than other ‘smartphone’ users – March 27, 2009
And a genius is born every day. Of course, MDN would have nothing to report if it couldn’t report this stuff every day ad nauseum.
Speaking of ad nauseum.
It’s not every day that a financial writer comes out with an intelligently thought out article that puts Apple in a positive light. Most financial writers would find the facts used in this story and manage to spin them into doom and gloom for Apple or find disparaging things to say about its customers. A very pleasant surprise!
When you say it like that, makes me want to reward the writer by turning off ad block, going to the full article, and clicking on everything!