iOS apps bring in 300% more revenue than Android counterparts
A new analysis of several top apps with both iOS and Android versions reveals that every $1.00 generated on iOS by an app corresponds to $0.24 in revenue for the Android version.
Analytics firm Flurry Analytics culled through its data in a report on Tuesday (via Daring Fireball) to examine Google Chairman Eric Schmidt's recent claim that app developers will prioritize Android over iOS in 6 months time.
According to the firm's data, the Android's share of new project starts has actually declined in 2011, a fact likely related to Flurry's finding that iOS apps tend to make significantly more money than their Android counterparts.
In the first quarter of 2011, new projects within Flurry's network were split 63 percent iOS, 37 percent Android. Android's share dropped to 27 percent in the second quarter and then fell again to 25 percent in the third quarter. The firm estimates that the Android platform will regain some momentum in the fourth quarter, projecting new 27 percent of new project starts to come from Android during the period.
With anticipation of the upcoming holiday season, as well as new hardware and software releases from both Apple and Google, developer interest for both platforms jumped up significantly in the third quarter. Flurry, which estimates that its analytics services power 25 percent of all apps on the App Store and Android Market combined, saw new projects jump from roughly 11,000 in the second quarter to 15,000 in the third quarter.
After noting diminished developer interest in Android, the firm then set out to test anecdotal reports from developers that they were making three to four times as much money on iOS as Android.
"To be sure, we pulled a sample of in-app purchase data from a set of top apps with versions on both iOS and Android, comprising of several million daily active users (DAUs)," the report noted. "Running the numbers, we find that, on average, for every $1.00 generated on iOS, the same app will generate $0.24 on Android."
Flurry viewed the largest single factor affecting developer support to be "the consumer's ability to pay." Within Apple's ecosystem, iOS device users must associate a credit card or gift card with their iTunes accounts when setting up a device. Android, however, doesn't have that requirement, resulting in less of its users being readily paying customers.
"Despite installed base numbers and daily activations, the almighty dollar still drives business decision making among application developers," the report concluded. "And with the critical holiday season upon us, developers are betting on iOS for Christmas 2011."
The revenue difference between Android and iOS apps has been a common theme among results from research and analytics firms. In September, one firm suggested that Apple will generate $2.86 billion in app revenue in 2016, compared to projections of just $1.5 billion for Android. That's in spite of the fact that the study expected Android app downloads to almost double downloads on Apple's platform in five years. Google recently announced that the Android Market had surpassed 10 billion downloads, compared to Apple's October revelation of 18 billion total App Store downloads.
Another study from September concluded that "Android developers make much less money from paid apps than iPhone developers do," citing piracy as an issue for Google's platform. Over 50 percent of Android developers reported that piracy was a problem for them, according to the Yankee Group.
Piper Jaffray analyst Gene Munster said last month that iOS appears to have taken in 90 percent of all dollars spent on mobile devices, compared to Google's 7 percent of gross revenue. Over the next three-four years, Munster sees Apple maintaining a dominant 70%+ share of mobile app dollars. He went on to estimate that 13.5 percent of App Store downloads are paid, compared to 1.3 percent of Android Market transactions.
Analytics firm Flurry Analytics culled through its data in a report on Tuesday (via Daring Fireball) to examine Google Chairman Eric Schmidt's recent claim that app developers will prioritize Android over iOS in 6 months time.
According to the firm's data, the Android's share of new project starts has actually declined in 2011, a fact likely related to Flurry's finding that iOS apps tend to make significantly more money than their Android counterparts.
In the first quarter of 2011, new projects within Flurry's network were split 63 percent iOS, 37 percent Android. Android's share dropped to 27 percent in the second quarter and then fell again to 25 percent in the third quarter. The firm estimates that the Android platform will regain some momentum in the fourth quarter, projecting new 27 percent of new project starts to come from Android during the period.
With anticipation of the upcoming holiday season, as well as new hardware and software releases from both Apple and Google, developer interest for both platforms jumped up significantly in the third quarter. Flurry, which estimates that its analytics services power 25 percent of all apps on the App Store and Android Market combined, saw new projects jump from roughly 11,000 in the second quarter to 15,000 in the third quarter.
After noting diminished developer interest in Android, the firm then set out to test anecdotal reports from developers that they were making three to four times as much money on iOS as Android.
"To be sure, we pulled a sample of in-app purchase data from a set of top apps with versions on both iOS and Android, comprising of several million daily active users (DAUs)," the report noted. "Running the numbers, we find that, on average, for every $1.00 generated on iOS, the same app will generate $0.24 on Android."
Flurry viewed the largest single factor affecting developer support to be "the consumer's ability to pay." Within Apple's ecosystem, iOS device users must associate a credit card or gift card with their iTunes accounts when setting up a device. Android, however, doesn't have that requirement, resulting in less of its users being readily paying customers.
"Despite installed base numbers and daily activations, the almighty dollar still drives business decision making among application developers," the report concluded. "And with the critical holiday season upon us, developers are betting on iOS for Christmas 2011."
The revenue difference between Android and iOS apps has been a common theme among results from research and analytics firms. In September, one firm suggested that Apple will generate $2.86 billion in app revenue in 2016, compared to projections of just $1.5 billion for Android. That's in spite of the fact that the study expected Android app downloads to almost double downloads on Apple's platform in five years. Google recently announced that the Android Market had surpassed 10 billion downloads, compared to Apple's October revelation of 18 billion total App Store downloads.
Another study from September concluded that "Android developers make much less money from paid apps than iPhone developers do," citing piracy as an issue for Google's platform. Over 50 percent of Android developers reported that piracy was a problem for them, according to the Yankee Group.
Piper Jaffray analyst Gene Munster said last month that iOS appears to have taken in 90 percent of all dollars spent on mobile devices, compared to Google's 7 percent of gross revenue. Over the next three-four years, Munster sees Apple maintaining a dominant 70%+ share of mobile app dollars. He went on to estimate that 13.5 percent of App Store downloads are paid, compared to 1.3 percent of Android Market transactions.
Comments
I can only hope that Eric is reading these reports... and choking on them.
Won't he have to read it 300 times for it to have that effect?
If I were a developer, who would I rather be making apps for? iOS or Android? It's a real hard choice.
On iOS, the developer probably only has to make a couple of versions, one for iPhone/iPod Touch and one for iPad.
On Android the developer probably has to make more versions to accommodate the wide range of fragmented Android devices that are out there and the testing for all of the million different Android devices that are out there sounds like a huge pain in the ass.
I'm not a developer, but I've read that iOS is far easier and better to program for than Android. So that leaves a hard choice. Make an app for iOS and make 300% more money, or work much harder on a platform that is a pain to program for and make much less money.
I can only hope that Eric is reading these reports... and choking on them.
None of these stats matter. Eric Schmidt says in 6 months, you will develop for i scream scamwich whether you like it or not.
Within Apple's ecosystem, iOS device users must associate a credit card or gift card with their iTunes accounts when setting up a device.
Actually, you can get an Apple ID without providing credit card info. I just found out recently at the Apple Store when setting up accounts for my in-laws.
None of these stats matter. Eric Schmidt says in 6 months, you will develop for i scream scamwich whether you like it or not.
well no he said "you will want to develop for ICS whether you like ICS or not, perhaps even first."
but hey...who needs facts.
well no he said "you will want to develop for ICS whether you like ICS or not, perhaps even first."
but hey...who needs facts.
but here's the problem with that. Almost all iOS devices sold in the last 2.5 years will be on iOS5. Only a dozen (high guess-timate) of select Android devices will have ICS.
As a developer, my hesitation is more than just the lack of profit in supporting Android:
• Fragmentation: how many of my users are really on the latest Android version? Very few are even ABLE to run it at any given time, and fewer still actually do so. So my game must be hobbled by supporting old OS’s, far more than is the case with iOS.
• I’ve got spend agonizing amounts of time TESTING different Android configurations: a zillion hardware designs with a zillion carrier modifications and numerous aging versions of Android OS. Or, I can let my unsuspecting customers do the testing... but I’ve still got to follow up on what they report!
• From what I’ve heard, Android developers have to field customer service contacts that Apple handles for you on iOS. Stuff relating to the download/purchase/refunds and basic compatibility is more likely to end up in YOUR lap. And let’s face it, Android users suffer more problems than iOS users: you’re going to not only waste time, but face the wrath of users frustrated by the whole experience, without Apple to take any of that off your shoulders.
• I might need to go ad-supported, which is how Google thinks the world should be. Then my customers haven’t paid with money (only with their time and aggregated demographic data), so if they have problems, crashes, lose their high scores/progress... well, tough luck? But I really hate to shovel in ads! And I hate to settle for sending out something of poor-quality even if I end up with no good way to avoid it.
• It’s easier to pirate for Android (no need to jailbreak); but the KIND of piracy that worries me is when someone steals your app and then RESELLS it (or gives it away), possibly adding malware in the process. Doesn't happen on iOS. Guess who gets the support calls/emails for those pirated versions?
• Better middleware support on iOS. Just as app developers prefer iOS, so do middleware vendors making useful components so you don’t have to reinvent every wheel.
• And, since my app is a game, Game Center (achievements, multiplayer, push notifications, scoreboards) is a great draw for iOS.
I could deal with all of the above. Some do, at a cost in time and money. Some lose money doing so! Some even make a little. How many make ENOUGH money to be worth it? Very few, I suspect—and I would guess most of those tend to pretty simple, even shovelware, apps—but thus easier to test/support.
I’m sure that’s part of why you just don’t see the same quality of apps on Android to match the best on iOS. Still, after years, they just aren’t there. Android fans settle for “good enough I guess” and pretend those apps are the same. They’re not. (The other part is failing of the OS itself and its haphazard, primitive handling of UI. Possibly not a problem for my game, but a problem for non-game apps.)
well no he said "you will want to develop for ICS whether you like ICS or not, perhaps even first."
but hey...who needs facts.
Makes no difference what he said. Why should developers go out of their way to make apps for a company that doesn't protect their apps from piracy? An app store that resembles the wild west with no rules.
but here's the problem with that. Almost all iOS devices sold in the last 2.5 years will be on iOS5. Only a dozen (high guess-timate) of select Android devices will have ICS.
Indeed.
I'm not saying Schmidt is right but no need to continue disseminating disinformation.
Indeed.
I'm not saying Schmidt is right but no need to continue disseminating disinformation.
The asshat who is disseminating disinformation is the moron at Google who claimed that developers will prioritize Android over iOS in 6 months. What a retarded and idiotically stupid thing to say.
The asshat who is disseminating disinformation is the moron at Google who claimed that developers will prioritize Android over iOS in 6 months. What a retarded and idiotically stupid thing to say.
Good thing he never said that...
Good thing he never said that...
"Whether you like ICS or not, and again I like it a great deal, you will want to develop for that platform, and perhaps even first."
It his beliefe that ownership without utilization is all that is important in smartphones.
Actually, you can get an Apple ID without providing credit card info. I just found out recently at the Apple Store when setting up accounts for my in-laws.
If I recall correctly, you can create an "cardless" Apple ID by downloading one free app from the App Store on an iOS device.
You know from personal experience that you can delete all associated credit card info from an existing Apple ID.
Let's see.....
If I were a developer, who would I rather be making apps for? iOS or Android? It's a real hard choice.
On iOS, the developer probably only has to make a couple of versions, one for iPhone/iPod Touch and one for iPad.
On Android the developer probably has to make more versions to accommodate the wide range of fragmented Android devices that are out there and the testing for all of the million different Android devices that are out there sounds like a huge pain in the ass.
Actually, this was basically Rovio Mobile's explanation why Angry Birds sucked so bad on the first wave of that app's supported Android devices.
App developers work much harder pounding out Android apps, yet get less return. Nagromme has offered a list of Android developer issues that roughly parallel Rovio Mobile's observations.
Good thing he never said that...
You're just arguing semantics. It was clear what he meant.
If you have a problem with it, then you should complain to the numerous publications and sites that have reported his words as meaning exactly that.
There are enough cross-platform mobile development tools out there that there's no excuse not to have your app ready for all platforms, including games (I'm thinking of Unity).
And yeah, 24% of a lot of money is still a lot of money.
It's bad business.
Instead of wasting an enormous amount of time and energy in making an Android version that will only pull in less than a quarter of the revenues as the iOS version, that time is much better spent on working on another new iOS app.
If I were a developer, I would proudly state on my website, that my company does not develop for Android, and nobody should bother to ask as to when or if an Android version will become available.
This statistic isn't surprising as there are many, many more budget options for Android users, and those budget users simply aren't going to be paying as much for apps.
There are just as many budget users on iOS. If not more then android. You still got people buying 3GSs and those phones are no spring chickens. iOS has another advantage that has led to its success.
Also considering its not that the android market is unsuccessful for developers. It is that the iOS app store is simply more successful. Many of you are looking at it as the iOS app store as the default but if you step back and look at each of them you see where the difference lead them to different money solutions. The iOS is store so successful is due in part to iTunes gift cards. Androids app market is great, I love it. However there is an entirely different way to make money with android then iOS. If you where to look at who is getting the most money from adds we would see a different story.
Also when looking at the words of Eric Schmidt a man with permanent Foot-in-mouth Syndrome you would know what he says is publicity.
Also