Apple's iOS App Store now generating 4x revenues per app vs Android Google Play

Posted:
in iPhone edited July 2016
A new report examining mobile app revenues shows strong growth for Apple in China and from music and video streaming titles, and another big jump in the revenue lead that its iOS App Store maintains over Android's Google Play.




Half the downloads, twice the revenue



The Q2 report by App Annie shows that that average iOS download now generates four times the revenue for developers compared to Google Play. Despite serving up half the downloads worldwide compared to Google Play, Apple's App Store generated twice the revenue overall.

In January, the group's report for 2015 similarly showed Google Play accounting for twice the total downloads, but noted that Apple's App Store was generating 75 percent more in revenues. For Q1, App Annie reported the App Store download gap had grown to 90 percent of Google Play's revenues.

Apple's steady increases in App Store revenues led the firm to observe in January that "Google must continue to evolve its strategy to help drive more revenue for its developers," and in particular pointed out that "Android market share needs to grow at the high end of the smartphone market to meaningfully drive more revenue share."

Strong App Store growth in China



The firm described App Store growth in China as "explosive," noting that revenues from iOS games in China have surpassed game sales in the U.S. Revenues from iOS games in China have surpassed game sales in the U.S.

Games make up about 75 percent of global iOS revenue, so China's ability to surpass the U.S. and Japan in Q2 in that large segment--even as both of those regions enjoyed healthy growth in gaming on their own--shows the tremendous potential for Apple's services-based income in China.

Two years ago, Apple's U.S. iOS App Store revenue was 2.9 times greater than China's, but last year that gap narrowed to 1.9 times. The U.S. is currently only 1.1 times greater. App Annie predicted that China will likely soon exceed the U.S. in total app revenues.

Google Play is not currently operating in China, although the company has signaled an interest in establishing some market presence there. Google, along with Facebook and Twitter, are officially blocked within China; home grown alternative app markets and social networks have sprung up in their place.

Android missing out on iOS music, video streaming growth



Apps categorized under Music or Entertainment have also experienced rapid growth over the past two years, although iOS has been the primary beneficiary of growing consumer interest in streaming music and video apps.

Revenues from in-app subscriptions in apps including Netflix and HBO Now were a "main driver of revenue growth," the report noted, enabling the Entertainment category on iOS to reach parity with popular streaming music apps.

Google Play also experienced some growth in these categories over the past year, but lags far behind the commercial interest demonstrated on Apple's iOS platform.




Use of apps growing, revenue growth to nearly double by 2020



Refuting a popular media narrative that growth in mobile apps is growing stagnant, the firm noted that "since Q2 2014, time spent in apps has nearly doubled. As our lives become more mobile enabled, apps are at the center of our daily operations."

Growth in mobile app revenues is expected to grow from 2015's $42 billion to $52 billion this year, and reach $102 billion by 2020. Much of that growth will come from emerging markets.

"By 2020 we expect emerging economies to represent 40% of the worldwide revenue," the firm noted, predicting that "India will see the fastest growth."




Apple's all about apps



Apple focused attention on the 20 percent annual growth it experienced in its Services segment last quarter, an increase driven in large part by App Store earnings.

The company directly benefits from App Store sales and In App Purchases, and interest in apps helps to drive demand for premium hardware that runs the latest games and innovative software.

The strategic importance of the App Store is reflected in Apple's decision last winter to move its App Stores out of Eddy Cue's iTunes and iCloud oversight and instead assign them to Phil Schiller, its head of worldwide marketing.

The company has also invested heavily in making it easier to develop iOS apps, apparent in its work on the Swift programing language introduced in 2014 and the company's new Swift Playgrounds for iPad, a new tool designed for teaching the basics of code to a new generation of aspiring programmers.

Apple's focus on apps is also apparent its its portrayal of apps as being "the future of television" on Apple TV, and a renewed effort to make Apple Watch a more effective platform for third party developers with the release of watchOS 3.0.

The company has also made apps--rather than just hardware features--central to its accessibility efforts intended to make the power of computing available to as many people as possible. This year at WWDC, Apple invited deaf-blind accessibility advocate Haben Girma to address third party app developers at its development conference, to encourage them to think about building accessibility into their own apps from the start.
patchythepirate
«1

Comments

  • Reply 1 of 39
    jbdragonjbdragon Posts: 1,857member
    I don't really find it shocking. Android may have 80% of the global market, but most of them Android phones sold are low end to mid range. People wanting CHEAP phones aren't going to be throwing money at Apps and services. They want free, free,free!!! if it's not FREE, Pirate it!!!
    ButidonttweetDeelroncapasicumigorskyjony0propod
  • Reply 2 of 39
    Wait, people who buy cheap phones at buy one get one free sales are cheap when it comes to paying for apps?!? Who could have foreseen such a thing???
  • Reply 3 of 39
    arlomediaarlomedia Posts: 252member
    That's the same the ratio I'm seeing from my own apps. I have two that are available on both platforms and generate about 80% of their revenue from iOS vs 20% from Android.
    napoleon_phoneapartbrucemczimmermannDeelroncapasicumjbdragonjony0
  • Reply 4 of 39
    arlomedia said:
    That's the same the ratio I'm seeing from my own apps. I have two that are available on both platforms and generate about 80% of their revenue from iOS vs 20% from Android.

    It's nice to see a developer weigh in on this. Thanks.
    slprescottzimmermannDeelronjbdragonjony0
  • Reply 5 of 39
    mubailimubaili Posts: 377member
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 
  • Reply 6 of 39
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.
  • Reply 7 of 39
    The larger screens and faster processors in iPhone 6 and 6s has given a big boost to gaming apps.
  • Reply 8 of 39
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.

    Vision Mobiles's Q2 2015 Developer Economic report gives you some of the detail you're after:

    - 8% of iOS developers (17,000 devs) generate greater than $2.4 Million annually
    - 7% or 15,000 iOS devs make between $600K and $2.4 Million p.a.
    - 24% or 50,000 iOS devs make between $60K and $600K p.a.

    In terms of Android developers, Vision Mobile then reports:

    “It turns out that Android is not even the second best platform for revenues. Of those prioritising the mobile browser, 47% are below the app poverty line, making less than $500 and 29% make more than $5,000 per month"

    "Android developers look poor in comparison with 55% earning less than $500 per month from the platform and just 19% earning more than $5,000 per month. In fact, the revenue distribution for Android-first developers doesn’t look much better than that for those targeting BlackBerry 10 or Windows Phone either. Since the user base for Android is more than an order of magnitude bigger, this is astonishing.”

    “Speculation that Android’s overwhelming market share would eventually tempt top iOS developers to switch their priorities seem to have been unfounded. If anything, the reverse is likely to happen as the app economy continues to mature.”
    edited July 2016 slprescottDanielEranbrucemcDeelroncapasicumigorskyjbdragonjony0patchythepirate
  • Reply 9 of 39
    croprcropr Posts: 833member
    arlomedia said:
    That's the same the ratio I'm seeing from my own apps. I have two that are available on both platforms and generate about 80% of their revenue from iOS vs 20% from Android.
    The split for my apps are slightly different, but I am living in a country with only 20% iOS market share and I concentrate my marketing efforts to my country.  I  am using 2 models.  The first (traditional) model are plain app purchases and in app purchases. I get roughly 50% iOS and 50% Android.  In the 2nd model the app is free but people need to subscribe via a website to get premium features (like Evernote, Slack, Spotify, ...).  Here is split becomes: 60% Android and 40% iOS.  In this model,  I do not need to give Apple and Google the 30% cut, and as such this is by far the most lucrative model.  I do not know of the latter model is counted in the app revenue, as Apple and Google don't see the transactions passing by.
    edited July 2016
  • Reply 10 of 39
    croprcropr Posts: 833member
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.
    I have my app developing company since 2012.  80% of the income comes from developing apps for 3rd parties. My customers are banks, transport companies, government, ...  These apps are always free and cross platform (iOS and Android).
    Being profitable with your own apps is difficult, but having my own apps makes it easier to win contracts with 3rd parties
  • Reply 11 of 39
    MacProMacPro Posts: 17,562member
    arlomedia said:
    That's the same the ratio I'm seeing from my own apps. I have two that are available on both platforms and generate about 80% of their revenue from iOS vs 20% from Android.
    Doing some quick mental math and assuming time is limited, I'd suggest making a third app and being iOS only;)

    Seriously though, frankly, I am surprised the ratio isn't even more stark.  Then again in reality it is.  Let's not forget that 80:20 profit ration isn't based on equal numbers of iPhones versus Android devices.  
  • Reply 12 of 39
    mac fanmac fan Posts: 87member
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.
    I did not know that less than $100,000/member/app was not making a living.

    I'm happy for Apple's success with the App Store given that Jobs hadn't planned on having one.  I'm also happy that we've been spared a lot of App Store stats at the last two/three keynotes. (WWDC had to talk about it since it's a Dev conference). 

    But I'ld like to see Apple do to things that I think would be relatively easy:

    1) require the first three words of every app's name to be unique. I'm really tired of seeing so many apps being deliberately named very nearly identical to other apps to confuse the buyer.

    2) Apple needs to fix the App Store's search engine. Time and time again, an absolutely correct name search turns up a) no results remotely related to your search or b) your target app is buried down the list of similarly named apps. I won't speculate as to the why, but it happens far, far too often and needs to be fixed. Ok, the search engine thing might take some real work, but I'd like SEO to work in our favor.
  • Reply 13 of 39
    maestro64maestro64 Posts: 4,262member
    mubaili said:
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 

    it does not matter they too are not making money, you missing the point, Apple is making money since they are solely focus on the market segment which will spend money the people with disposable incoming. Android has the customers who can barely afford to have a phone, they buy the cheapest thing on the market.
  • Reply 14 of 39
    maestro64maestro64 Posts: 4,262member
    mubaili said:
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 

    it does not matter they too are not making money, you missing the point, Apple is making money since they are solely focus on the market segment which will spend money the people with disposable incoming. Android has the customers who can barely afford to have a phone, they buy the cheapest thing on the market.
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.


    Not sure why everyone think just because they can make and App they should be rich and famous. First in order to make lots of money you need a product which everyone wants or needs. Just because you had what appeared to be a great idea does not mean everyone else with money in their pockets sees it that way. Just look at Pokémon go, who would have thought it would have taken off like it did. Is your app like Pokémon go which everyone wants to play.

    Face there are only a few great ideas which generate lots of income for their developers. Even then some of those developers has few good years then it starts to die off. The best product is one that people must have and are willing to pay for it over and over again.


    igorsky
  • Reply 15 of 39
    maestro64maestro64 Posts: 4,262member
    mubaili said:
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 

    it does not matter they too are not making money, you missing the point, Apple is making money since they are solely focus on the market segment which will spend money the people with disposable incoming. Android has the customers who can barely afford to have a phone, they buy the cheapest thing on the market.
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.


    Not sure why everyone think just because they can make and App they should be rich and famous. First in order to make lots of money you need a product which everyone wants or needs. Just because you had what appeared to be a great idea does not mean everyone else with money in their pockets sees it that way. Just look at Pokémon go, who would have thought it would have taken off like it did. Is your app like Pokémon go which everyone wants to play.

    Face there are only a few great ideas which generate lots of income for their developers. Even then some of those developers has few good years then it starts to die off. The best product is one that people must have and are willing to pay for it over and over again.


  • Reply 16 of 39
    maestro64maestro64 Posts: 4,262member
    mubaili said:
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 

    it does not matter they too are not making money, you missing the point, Apple is making money since they are solely focus on the market segment which will spend money the people with disposable incoming. Android has the customers who can barely afford to have a phone, they buy the cheapest thing on the market.
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.


    Not sure why everyone think just because they can make and App they should be rich and famous. First in order to make lots of money you need a product which everyone wants or needs. Just because you had what appeared to be a great idea does not mean everyone else with money in their pockets sees it that way. Just look at Pokémon go, who would have thought it would have taken off like it did. Is your app like Pokémon go which everyone wants to play.

    Face there are only a few great ideas which generate lots of income for their developers. Even then some of those developers has few good years then it starts to die off. The best product is one that people must have and are willing to pay for it over and over again.


  • Reply 17 of 39
    maestro64maestro64 Posts: 4,262member
    mubaili said:
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 

    it does not matter they too are not making money, you missing the point, Apple is making money since they are solely focus on the market segment which will spend money the people with disposable incoming. Android has the customers who can barely afford to have a phone, they buy the cheapest thing on the market.
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.


    Not sure why everyone think just because they can make and App they should be rich and famous. First in order to make lots of money you need a product which everyone wants or needs. Just because you had what appeared to be a great idea does not mean everyone else with money in their pockets sees it that way. Just look at Pokémon go, who would have thought it would have taken off like it did. Is your app like Pokémon go which everyone wants to play.

    Face there are only a few great ideas which generate lots of income for their developers. Even then some of those developers has few good years then it starts to die off. The best product is one that people must have and are willing to pay for it over and over again.


  • Reply 18 of 39
    maestro64maestro64 Posts: 4,262member
    mubaili said:
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 

    it does not matter they too are not making money, you missing the point, Apple is making money since they are solely focus on the market segment which will spend money the people with disposable incoming. Android has the customers who can barely afford to have a phone, they buy the cheapest thing on the market.
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.


    Not sure why everyone think just because they can make and App they should be rich and famous. First in order to make lots of money you need a product which everyone wants or needs. Just because you had what appeared to be a great idea does not mean everyone else with money in their pockets sees it that way. Just look at Pokémon go, who would have thought it would have taken off like it did. Is your app like Pokémon go which everyone wants to play.

    Face there are only a few great ideas which generate lots of income for their developers. Even then some of those developers has few good years then it starts to die off. The best product is one that people must have and are willing to pay for it over and over again.


  • Reply 19 of 39
    maestro64maestro64 Posts: 4,262member
    mubaili said:
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 

    it does not matter they too are not making money, you missing the point, Apple is making money since they are solely focus on the market segment which will spend money the people with disposable incoming. Android has the customers who can barely afford to have a phone, they buy the cheapest thing on the market.
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.


    Not sure why everyone think just because they can make and App they should be rich and famous. First in order to make lots of money you need a product which everyone wants or needs. Just because you had what appeared to be a great idea does not mean everyone else with money in their pockets sees it that way. Just look at Pokémon go, who would have thought it would have taken off like it did. Is your app like Pokémon go which everyone wants to play.

    Face there are only a few great ideas which generate lots of income for their developers. Even then some of those developers has few good years then it starts to die off. The best product is one that people must have and are willing to pay for it over and over again.


  • Reply 20 of 39
    maestro64maestro64 Posts: 4,262member
    mubaili said:
    well, there is no Google Play in China. They should lump in revenue from Huawei App Store, Xiaomi App Store, Bidu App Store etc to do a true comparison 

    it does not matter they too are not making money, you missing the point, Apple is making money since they are solely focus on the market segment which will spend money the people with disposable incoming. Android has the customers who can barely afford to have a phone, they buy the cheapest thing on the market.
    I am a developer for iOS and tvOS. Not making much $$. I would very much like to see a report that shows how many developers are making a living doing apps for Apple. By that I mean $100,000 or more for each team member for an app.


    Not sure why everyone think just because they can make and App they should be rich and famous. First in order to make lots of money you need a product which everyone wants or needs. Just because you had what appeared to be a great idea does not mean everyone else with money in their pockets sees it that way. Just look at Pokémon go, who would have thought it would have taken off like it did. Is your app like Pokémon go which everyone wants to play.

    Face there are only a few great ideas which generate lots of income for their developers. Even then some of those developers has few good years then it starts to die off. The best product is one that people must have and are willing to pay for it over and over again.


Sign In or Register to comment.