Google Play passes Apple’s iOS App Store in app downloads, but not app revenue

“Riding strong performances in India and Brazil, Google Play’s total app downloads were higher than those in the iOS App Store in Q2 2013,” App Annie reports.

“Though Google Play had more downloads, the iOS App Store still generated 2.3x the revenue,” App Annie reports. “As of Q2 2013, app downloads in Google Play were about 10% higher than those in the iOS App Store. Though Google Play led the iOS App Store in one key measure, there still remained a wide gap in app monetization, as the iOS App Store generated 2.3x the app revenue of Google Play.”

App Annie reports, “The United States, Japan and United Kingdom remained the leaders in the iOS App Store when looking at revenue generation, and Australia climbed to #4 after a strong Q2. iOS App Store revenue was driven primarily by the United States and Japan, which combined to account for about half of the total iOS App Store revenue in Q2.”

App Annie Q213 App Store vs. Google Play Downlaods

App Annie Q213 App Store vs. Google Play Revenue

 
Much more in the full article here.

Related articles:
Apple’s App Store the biggest winner in the smartphone and tablet app economy it launched – July 14, 2013
5 years on, Apple’s App Store has forever changed the face of software; a defining moment in personal computing history – July 12, 2013
Apple’s iOS App Store now makes over $1 billion in profits per year – May 30, 2013

41 Comments

  1. I don’t believe it. Someone’s fudging the numbers. We already know that most android users don’t even use their devices as app platform. This must be including all “Google Play” downloads, not just apps. Maybe it includes downloading updates to apps, which Apple’s numbers don’t include.

  2. Just some Analcysts number crunching. Those numbers mean jack if the company isn’t getting any revenue. Lets compare Android to a park like Geauga Lake in Ohio. That park did not make enough revenue, so they had to close it down, and move some of the roller coasters to parks such as Cedar Point and Michigan’s Adventure in Muskegon. Think of it this way: Android is Geauga Lake during the 2007 season, (which was their final season) and iPhone is Cedar Point.

      1. What? I thought I made a great analagy. Cedar Point is obviously the Apple of the theme park world, with Six Flags being the Microsoft. Six Flags ran Geauga Lake into the ground back in the early 2000s, and by the time Cedar Fair bought the park, it was way too late to fix the problems Six Flags caused. Maybe you don’t live in the Cleveland area. You would understand if you did.

      1. Please, Chicago is a great city. I don’t want people to compare a fine place like the Windy City to shifty people like Google or M$. Wait a minute…Chicago has Six Flags Great America…continue on with what you were saying.

        1. I don’t know, but by the sounds of it, could be used to describe Detroit. Detroit’s politics is actually worse off than Chicago’s. While Chicago does have some crooks in office, they are no where as bad as the politicians that ruined Detroit.

        2. was referring to the lyrics of “Chicago, Chicago”:

          Chicago, Chicago, that toddlin’ town
          Chicago, Chicago, I’ll show you around, yeah
          (You’ll stay around)

          Bet your bottom dollar, you lose the blues in
          Chicago, Chicago, the folks who visit
          All wanna settle down, mmm
          (All wanna settle down in my hometown)

          On State Street that great street, I just wanna say
          [ From: http://www.metrolyrics.com/chicago-lyrics-chicago.html ]
          They do things they don’t do on Broadway
          You’ll have the time, the time of your life
          Bring all your friends, all your kids and your wife
          To Chicago, Chicago, my hometown, hey, now baby

          Ooh baby, you’ll have the time, the time of your life
          Bring all your friends, all your kids and your wife
          To Chicago, Chicago my hometown
          Oh, to Chicago, Chicago, my hometown, yeah

  3. The trend is a bit troubling, if it continues. The fact that more people downloaded Google’s offerings than Apple’s is a major symbolic achievement by Google. While it is still not enough to motivate developers to invest massive amounts of resources needed to port their iOS software to Android properly (in other words, without dropping significant features), if this trend continues, one day it might be there.

    This is pretty much unavoidable; vast majority of world population cannot afford a $650 iPhone, so they will buy a $100 Android. iPhone’s market share will likely continue to erode, and it should not be a major concern for Apple, or Apple’s fans. We don’t mind driving a BMW, and we don’t really care to see the rest of the world drive a BMW. Let them drive a Hyundai (or a Trabant).

    There are several things that will need to be kept under control (by Apple) to ensure premium experience throughout the system for us, Apple users. They will have to ensure that the market share does not erode below the point at which it would become uninteresting for the developers. Right now, it is the best reasonable choice: it offers a unified, consistent, responsive and scalable platform with motivated users, ready to spend disposable income, compared to fragmented, inconsistent and balkanized platform with users looking for free content and apps. As long as situation is such, Apple should be able to afford market share drop to 1:4 (iOS vs. Android) and still offer better return on investment to developers. Dropping below this ratio, however, might tilt things too far in the other directions, and developers might lose motivation.

    This is perhaps why a cheaper iPhone will have to exist. Its main disadvantage is that it will bring the kinds of customers that Apple hasn’t really had to deal with before. Some of them may be cheapskates looking for a bargain, and Apple’s legendary customer service may end up suffering because of the heavy influx of lower-revenue users. Still, this may be an unavoidable necessity in order to hold onto the market share needed to keep premium developers in the nest.

    1. It’s not market share for developers that’s important, it’s profit. That’s why many developers have not developed for Android/Windows Phone/Blackberry — the profit does not justify the time and resource commitment.

  4. Not only that, but Android’s so-called “growth” is in emerging markets like Brazil and India. I hope I don’t sound like a ‘Murikan, but America is the most important market for iPhone, (and AndyBot). The emerging markets are actually being targeted by Mozilla’s Firefox OS, and Jolla’s Sailfish OS. Samsung is also in on this with Tizen. Android is popular in these countries because many people over there are still part of the growing middle class, and may not have enough cash for iPhone, which is where the iPhone 5C comes in.

    1. The cheap iPhone will have good margins. Apple will be very happy to sell it to anyone with enough money to buy it. Apple isn’t haughty or stuck up. They just make great stuff and are happy to sell it to the masses. Once in the Apple ecosystem consumers find it difficult to get out. Be they wealthy, middle class or struggling. They all have the same color money : green. Some have more than others. Apple won’t manufacture crap but they are willing to sell their products to everyone. The cheap iPhone will sell like hotcakes!

  5. It’s even more hard to believe when Google lies about there numbers. So I would take it with a grain of salt or less for that matter. Also Apple actually is making money off of there App store so it really doesn’t matter.

  6. Investors need to ask themselves: “what does success for Apple look like to me?”

    If the answer is total domination of every segment they field a product in and/or driving Google and Microsoft out of business, you’re going to be disappointed.

    However, if you see Apple making great profits and year-over-year growth while selling their products and services to a smaller audience who is willing to pay a little extra for excellence, well, then Apple has a bright future.

  7. Android’s ad revenue generated by free apps should be included in the overall play store revenue. Google’s ad services are VASTLY superior to Apple’s. This is why many paid apps in iOS are free in the play store.

    1. Well, that is a very tricky one to count. Exactly WHAT type of Google’s ad revenue should be counted as Play Store revenue? Does Google even break down revenue numbers based on the point of origin (web ads vs. embedded ads, further broken down by platform)? And then, if we do that, we’d have to also include all add revenue that Apple brings in through embedded ads in iOS apps (there are plenty of free apps there with embedded ads as well).

      It is very likely that Google’s add revenue (from Android apps) is greater than Apple’s add revenue (from iOS apps). But is is also certain that it can nowhere near make up for the massive difference in direct revenue from the two App stores.

      And let us not even try to compare paid iOS apps with their free Android equivalents. Even for apps where both versions are free (or both cost the same money) iOS app is significantly better than the Android version, with much fuller feature set, greater stability and better user experience, with the Android version just a lame poorly featured copy with most basic functionality. Many developers simply can’t in all honesty ask for money for such under-featured app, so they offer the limited-functionality Android app for free (who in their sane mind would pay for something like that anyway?). Couple that with the fact that the average Android user refuses to pay for apps (compared to the average iOS user, who doesn’t mind paying for a good app), and it is clear why Android market has a very long road ahead before it becomes equally attractive as iOS for developers.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.