Apple’s App Store took 60% of mobile app sales in 2016 despite a smaller user base vs. Google’s Android

“Apple’s App Store raked in 60% of mobile app sales last year, despite having a smaller base of users than Alphabet’s Google Play store, BMO Capital Markets reported Wednesday,” Patrick Seitz reports for Investor’s Business Daily. “Apple’s iOS App Store generated $27 billion in revenue in 2016, compared with $18 billion for Google Play, BMO said. The investment bank predicts that Apple will hold its 60% share of app sales for at least the next two years.”

“BMO said in a report, ‘We estimate Apple recently passed 700 million iPhones in use, whereas Google Play crossed a billion users in mid-2015,” Seitz reports. “Apple iOS device owners spend nearly three times as much on apps as users of Google Android-based devices, the firm said. BMO believes this is because of the premium nature of iPhones and the often better quality of apps in the Apple App Store.”

“Apple’s app sales are more profitable than Google’s, BMO said,” Seitz reports. “Apple got $7.3 billion in App Store revenue in its fiscal year 2016, which ended Sept. 24, BMO estimates. That represented about 3% of Apple’s total sales last fiscal year. Google took in $5.4 billion in app store revenue in calendar 2016, representing about 6% of total company revenue, BMO said.”

Read more in the full article here.

MacDailyNews Take: The main reason for this discrepancy is demographics. Those with disposable income and the proven will to spend it own iPhones. Those without settle for iPhone knockoffs.

Hee Haw!

The price tags on and features of Apple’s products are an IQ test. They are a filter that Apple uses to skim off the desirable customers and leave the leftovers to the knockoff peddlers. Tablet buyers, just like personal computer and smartphone buyers, either pass or they fail – daily, repeatedly, forever, until or unless they finally figure it out.SteveJack, MacDailyNews, October 23, 2013

SEE ALSO:
Why Google Play sales still can’t keep up with Apple’s App Store – February 29, 2016
Google is suffering from a raging case of Apple iPhone envy – February 2, 2016
Apple’s iPhone can soon reap 100 percent of world’s smartphone profits – November 17, 2015
Apple’s iPhone owns 94% of smartphone industry’s profits – November 16, 2015
Apple iPhone owns over 90% of smartphone profits, so why do others even bother fighting over Apple’s scraps? – October 8, 2015
Beleaguered Samsung’s future depends more on components than on copying Apple – October 7, 2015
Beleaguered Samsung finding it tough to compete Apple’s revolutionary iPhone – October 6, 2015
Apple’s iPhone juggernaut continues with record-breaking sales while Android peddlers fight over scraps – September 28, 2015
Apple’s iPhone owns 92% of smartphone industry’s profits – July 13, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Why Android users can’t have the nicest things – January 5, 2015
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
What we mean by ‘Hee Haw demographic’ – November 13, 2013
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
Apple will continue to ignore Android market share stats all the way to the bank – October 29, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013

8 Comments

  1. My iPhone SE is the perfect form factor and WORKS, is stable and free of ALL THINGS Google. It is also VERY FAST….you know… responsive to my touch. Fluid comes to mind. Steve only wanted 1% of the global market. The rest is history. Whatever happened to Blackberrie’s STORM? pfff. Up Yours, you condescending losers. Yeah LOSERS.. Crack this .!..

  2. Oh, so non-rich people are dumb people? Hee-haw people? Android people? Bank book is determined by IQ?

    For some, “all the money you made will never buy back your soul.”

    I agree with one thing: buying Apple is the better, smarter choice.

    1. Stupid people can’t grasp simple concepts like Total Cost of Ownership. Stupid people can’t tell knockoffs from the real thing. Stupid people can’t recognize the difference between having seamless ecosystem vs. a hodgepodge of things that have no hope of matching up. And, yes, in general, stupid people can’t figure out how to make a lot of money in this world.

  3. Not that it matters how well the App Store is doing. Apple stock still got slammed hard today. Much worse than Alphabet or any of the FANG stocks. Apple still remains the stock to dump when the general market is down. Despite the many price target upgrades, fear still remains the highest with Apple.

    Apple will never be able to significantly increase iPhone market share. Cheap smartphones will always be more in demand than quality smartphones. I doubt it has anything to do with IQ. It just comes down to how much money most consumers have to spend. Alphabet realizes that and they’ll keep pushing cheaper and cheaper smartphones. Wall Street will always value Alphabet higher than Apple based on their higher market share.

    1. Good point. Today Gogle announced that the next version of Android, O, will have a ‘lite’ version that supports devices that are limited to 1GB of RAM.

    2. Keep in mind that today (‘I call for the impeachment of The Trump’ day) was all about perception. Once the *shivers* over The Trump’s latest fiasco wears off, the scared little sheeple will return to the flock.

      The Trump is just another narcissistic con-man parasite. Happiness is getting someone competent into the White House. Imagine that.

  4. Unless articles like this one mention the number of paid apps sold in addition to total revenue, I would take this with a grain of salt. All it might mean is that Apps cost more on iOS than Android, since we’re agreed that Android is the ‘low cost’ OS that is good enough for a lot of people.

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