Apple’s App Store is destroying Google Play in services and subscriptions

“Apple’s U.S. customers installed 45 new iPhone apps in 2017, a growth of 10 percent over last year, while Services revenue from In-App Purchases and Subscriptions expanded by 23 percent – -driven by games, music and video streaming and dating services,” Daniel Eran Dilger reports for AppleInsider. “And overall, Apple’s U.S. App Store customers drove significantly higher revenue per user ($58) than Google Play ($38).”

“Recent U.S. data from Sensor Tower shows that… customers installed an average of 45 new iPhone apps in 2017, about 4 more than they had in 2016. One contributor to this growth is likely Apple’s efforts to highlight content in the App Store and make it easier to search for and discover titles, with high-quality, magazine-like merchandising,” Dilger reports. “And beyond downloads, users were volunteering to pay for more App Store content as well. Games alone drove about 62 percent of total revenues, or $36 per user, mostly from In-App Purchases.”

“Randy Nelson, Sensor’s head of mobile insights, stated, ‘we estimate that for each active Android device in the U.S. last year, approximately $38 was spent on Google Play-on and in apps-so about $20 less than iOS,'” Dilger reports. “That tracks with the disparity in revenue generation we see between the stores outside the per-device level. Android users generally spend less on or in apps, Google Play generated about 60 percent of the App Store’s revenue last year in the U.S.”

Read more in the full article here.

MacDailyNews Take: Naturally.

Android is pushed to users who are, in general:

a) confused about why they should be choosing an iPhone over an inferior knockoff and therefore might be less prone to understand/explore their devices’ capabilities or trust their devices with credit card info for shopping; and/or
b) enticed with “Buy One Get One Free,” “Buy One, Get Two or More Free,” or similar ($100 Gift Cards with Purchase) offers.

Neither type of customer is the cream of the crop when it comes to successful engagement or coveted demographics; closer to the bottom of the barrel than the top, in fact. Android can be widespread and still demographically inferior precisely because of the way in which and to whom Android devices are marketed. Unending BOGO promos attract a seemingly unending stream of cheapskate freetards just as inane, pointless TV commercials about robots or blasting holes in concrete walls attract meatheads and dullards, not exactly the best demographics unless you’re peddling muscle building powders or grease monkey overalls.

Google made a crucial mistake: They gave away Android to “partners” who pushed and continue to push the product into the hands of the exact opposite type of user that Google needs for Android to truly thrive. Hence, Android is a backwater of second-rate, or worse, app versions that are only downloaded when free or ad-supported – but the Android user is notoriously cheap, so the ads don’t sell for much because they don’t work very well. You’d have guessed that Google would have understood this, but you’d have guessed wrong.

Google built a platform that depends heavily on advertising support, but sold it to the very type of customer who’s the least likely to patronize ads.

iOS users are the ones who buy apps, so developers focus on iOS users. iOS users buy products, so accessory makers focus on iOS users. iOS users have money and the proven will to spend it, so vehicle makers focus on iOS users. Etcetera. Android can have the Hee Haw demographic. Apple doesn’t want it or need it; it’s far more trouble than it’s worth.MacDailyNews, November 26, 2012

“All men are created equal.”

Well, not when it comes to users of smartphones and tablets…

The bottom line: Those who settle for Android devices are not equal to iOS users. The fact is that iOS users are worth significantly more than Android settlers to developers, advertisers, third-party accessory makers (speakers, cases, chargers, cables, etc.), vehicle makers, musicians, TV show producers, movie producers, book authors, carriers, retailers, podcasters… The list goes on and on.

The quality of the customer matters. A lot.

Facile “analyses” that look only at market (unit) share, equating one Android settler to one iOS user, make a fatal error by incorrectly equating users of each platform one-to-one.

When it comes to mobile operating systems, all users are simply not equal.SteveJack, MacDailyNews, November 15, 2014

Apple App Store users spent nearly double that of Google Play users in Q417 – January 26, 2018
Apple’s iOS continues to attract content apps first, despite smaller unit share – October 30, 2017
Bernstein: Google to pay Apple $3 billion this year to remain the default search engine on iPhones and iPads – August 14, 2017
Higher income U.S. states use Apple iPhones; lower income states use Samsung Galaxy phones – September 27, 2016
iOS users are worth 10X more than those who settle for Android – July 27, 2016
Apple’s App Store revenue nearly double that of Google’s Android – April 20, 2016
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
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
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013
iPhone users smarter, richer than Android phone users – August 16, 2011
Study: Apple iPhone users richer, younger, more productive than other so-called ‘smartphone’ users – June 12, 2009


  1. Google is hurting itself by providing services to cheap people, the bottom feeders who wants everything for free. Apple is not hurting google, Apple is profiting from targeting the classy people who are happy to pay for great service

    1. And yet I am the famous applecynic who chits all over Apple but I admit to being an iTunes user. I am a major hypocrite and my life is one of yeah but no but yeah but no.

      It’s very confusing to be me. I even skipped 2.0 and went straight to three because I was and still am Mr Confused

      Confucisous say don’t listen to applecynic – learn from a real cynic, learn from a windowsynic.

        1. Whatevs, bro. You openly admit to breaking the law and you want people to take you seriously. Why would anyone take a criminal seriously? You are a lawcynic. that is all. mic drop.

        1. So you admit to being an oral tampon user who illegally modifies IP restricted content so you can illegally play it on multiple platforms, illegally?

          Why would anyone trust a thing a criminal says? You are a commonsensecynic and should be banned and ignored for being a doofus of the highest illegal dumfuq order.

  2. “One contributor to this growth is likely Apple’s efforts to highlight content in the App Store and make it easier to search for and discover titles”

    Not in iTunes they don’t. Taking away iTunes’ ability to accesses the app store so users have to search for apps on there devices is, IMHO, a great leap backwards in user experience. So hard to look for new apps on a small screen.

    Also, I have 5 iOS devices and when updates are posted I now use 5x the bandwidth e.g. Garage Band is 1.8 GB. I now have to download it on each device using 9 GB of my limited allowance. Then there’s all the other apps that need to be updated too.

    Not good enough Apple.

  3. “we estimate that for EACH ACTIVE Android device in the U.S. last year, approximately $38 was spent on Google Play-on and in apps-so about $20 less than iOS,’”

    Sounds to me like Google is making more money than Apple…. Hard to believe that Android would have less than 50% more active devices vs iOS.

Reader Feedback

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