App Store continues to vastly outpace Google Play in consumer spending

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AppleInsiderAppleInsider
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in iOS
Publishers behind the biggest apps in the App Store are earning considerably more from Apple's virtual storefront than from Google Play, Sensor Tower estimates suggest, with iOS apps bringing in 64% more revenue than Android counterparts.




Analysis into quarterly spending in apps for the top 100 publishers in the App Store and Google Play by Sensor Tower's Store Intelligence claims the firms generated a combined average of $130.4 million in consumer spending for the first quarter of 2019. The data also indicates the average gross income for the publishers was $83.8 million from App Store sales, while the Google Play equivalent was $51 million in the period.

Further analysis of the first quarters of 2014 until 2019 also indicates a compound annual growth rate of about 31% throughout the period, with the App Store slightly better than Google Play again with 31.3% and 31.2% respectively. In the five-year period, the App Store's average revenue for the top apps grew 291%, whereas Google Play apps saw a 289% increase.




Looking at specific types of apps, the non-gaming revenue sees a far greater disparity between the stores, with the average spend in the App Store for top non-gaming apps hitting $23.3 million, 232% larger than the $7 million average calculated for Google Play apps in the quarter.

The disparity is also growing, with the compound annual growth rate for the App Store reported at 56.1% for the apps, against 50.9% for Google Play, over the five-year reporting period. However, in 2019, Google Play saw an increase of 44.4% against the App Store's 30.5 percent, suggesting consumers may be more prepared to spend on Android than they had previously.

Gaming, the main revenue generator, has a far smaller disparity between the stores. While the App Store is still in the lead, with gaming spend averages for the top 100 publishers being at $70 million for Q1 2019, it is only leading Google Play by just 48% with earnings of $48 million.




The compound annual rates are reversed over the five-year period, with Google Play growing slightly faster at 30.2% against the App Store's 27.9% growth. The average top 100 game publisher made 12.6% more year-on-year for Q1 2019 on Google Play, while the App Store equivalents saw 9.8% growth.

Sensor Tower advises the revenue totals are for gross amounts. The data also doesn't include revenue figures for Google Play in China, which may affect the results.

In an earlier report in October, the analytics firm reported the App Store earned nearly 93% more in consumer spending than Google Play during Q3 2018. The App Store generated 12 billion in revenue during the period, a 23.3% increase over the same quarter in 2017, while Google Play's $6.2 billion was an increase over the same time period of 21.5%.
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  • Reply 1 of 33
    MacPromacpro Posts: 19,873member
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.
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  • Reply 2 of 33
    lkrupplkrupp Posts: 10,557member
    This alone keeps developers in the iOS business.
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  • Reply 3 of 33
    MacPromacpro Posts: 19,873member
    lkrupp said:
    This alone keeps developers in the iOS business.
    I am sure the resident Google spokesperson will be all over this any moment.
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  • Reply 4 of 33
    croprcropr Posts: 1,145member
    MacPro said:
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.
    No it isn't.  Being a developer for both iOS and Android, I can make a decent living because I develop my apps for both platform.   It is 1000 times more difficult to come up with a new profit making idea than to port a profit making app to the other platform

    80% of my apps would be loss making if they were only available on a single platform
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  • Reply 5 of 33
    genovellegenovelle Posts: 1,481member
    cropr said:
    MacPro said:
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.
    No it isn't.  Being a developer for both iOS and Android, I can make a decent living because I develop my apps for both platform.   It is 1000 times more difficult to come up with a new profit making idea than to port a profit making app to the other platform

    80% of my apps would be loss making if they were only available on a single platform
    So how many apps do you have on both platforms and how many different versions are you maintaining parity on?

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  • Reply 6 of 33
    muthuk_vanalingammuthuk_vanalingam Posts: 1,432member
    How about the "free" apps which use their own payment methods? For example, swiggy is a FREE food delivery app for installation from Google play store and App store. It is used by hundreds of thousands of people in my city/state. Through this app, there is a tremendous amount of business going on in this part of the world, much like Uber/Ola etc. I don't think the developers of those Apps are struggling to make a living, though it looks like being the case, if you strictly look into the amount of money charged upfront when the App was downloaded from App/Play store. And those FREE apps would distort the amount of business happening in the real world because of the availability of applications in App/Play store.
    edited June 2019
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  • Reply 7 of 33
    MacPromacpro Posts: 19,873member
    cropr said:
    MacPro said:
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.
    No it isn't.  Being a developer for both iOS and Android, I can make a decent living because I develop my apps for both platform.   It is 1000 times more difficult to come up with a new profit making idea than to port a profit making app to the other platform

    80% of my apps would be loss making if they were only available on a single platform
    So you are stating if you were iOS alone you would lose money on 80% of your products, correct?  That doesn't seem to jibe with the normal iOS developer statistics.  If it were true they'd all have given up and changed professions.  
    edited June 2019
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  • Reply 8 of 33
    coolfactorcoolfactor Posts: 2,377member
    "But but but.... Apple only has 1% of the marketshare!"

    Oh, the good old days!  :p
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  • Reply 9 of 33
    franklinjackconfranklinjackcon Posts: 612member
    MacPro said:
    lkrupp said:
    This alone keeps developers in the iOS business.
    I am sure the resident Google spokesperson will be all over this any moment.
    Alternative headlines:

    "Android users saves tens of millions of dollars on apps compared to iPhone users"

    "The most popular app developers, Google, Facebook, Microsoft, Twitter, earn hundreds of millions of dollars on Android without charging customers a dime"
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  • Reply 10 of 33
    1STnTENDERBITS1stntenderbits Posts: 460member
    MacPro said:
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.
    It's not a nightmare.  They can simply choose to support back to the oldest version of the OS that they think can garner the most ROI.  Remember, they're not targeting the different OEM skins of Android.  Also I'd be willing to bet a lot (the majority) of the disparity between the revenue from the App Store and the Play Store can be summed up in 5 letters: C-H-I-N-A.  One app store has Chinese revenue and the other doesn't.
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  • Reply 11 of 33
    tycho_macusertycho_macuser Posts: 88member
    franklinjackcon said:
    MacPro said:
    lkrupp said:
    This alone keeps developers in the iOS business.
    I am sure the resident Google spokesperson will be all over this any moment.
    Alternative headlines:

    "Android users saves tens of millions of dollars on apps compared to iPhone users"

    "The most popular app developers, Google, Facebook, Microsoft, Twitter, earn hundreds of millions of dollars on Android without charging customers a dime"
    Lol, are you high??

    please explain.

    Android users save tens of millions of dollars by using 3 companies that provide free apps/services for BOTH operating systems, and 1 that charges the same for its office suite on both platforms? 
    You made a bold statement. Then tried to co-sign your own statement w/ the weakest nonsense I’ve ever read!

    If you seriously think that developers make the exact same apps- free on Android, & for a fee on iOS.... you’re tripping!

    Those tens of billions are spent on apps that users find value in. I bet the developers are grateful that Apple didn’t foster an environment where the end user thought is: “I’m letting them track me and advertise to me... literally everything should be free! I’ll never pay for a single app as long as I live”.

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  • Reply 12 of 33
    lkrupplkrupp Posts: 10,557member
    MacPro said:
    lkrupp said:
    This alone keeps developers in the iOS business.
    I am sure the resident Google spokesperson will be all over this any moment.
    I blocked him long ago so I wouldn't know anyway, much less care what he had to say.
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  • Reply 13 of 33
    ericthehalfbeeericthehalfbee Posts: 4,491member
    MacPro said:
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.

    It's not as hard as it used to be since Google has been moving APIs into Google Play Services. Which is funny as people still pretend Android is open source, when Android is basically useless without Google Play Services (which is 100% closed source).

    The real fragmentation issue with Android these days is the wide range of devices sold and the fact that most of them are low-end. If you create an App that requires a flagship device (and a fast processor) you're severely limiting your target audience.
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  • Reply 14 of 33
    radarthekatradarthekat Posts: 3,938moderator
    1STnTENDERBITS said:
    MacPro said:
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.
    It's not a nightmare.  They can simply choose to support back to the oldest version of the OS that they think can garner the most ROI.  Remember, they're not targeting the different OEM skins of Android.  Also I'd be willing to bet a lot (the majority) of the disparity between the revenue from the App Store and the Play Store can be summed up in 5 letters: C-H-I-N-A.  One app store has Chinese revenue and the other doesn't.
    Except you forgot that Android has 5-6x the market share of iOS.  That should give Google Play the advantage, right?  Even without C-H-I-N-A.  
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  • Reply 15 of 33
    gatorguygatorguy Posts: 24,733member
    MacPro said:
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.
    It's not a nightmare.  They can simply choose to support back to the oldest version of the OS that they think can garner the most ROI.  Remember, they're not targeting the different OEM skins of Android.  Also I'd be willing to bet a lot (the majority) of the disparity between the revenue from the App Store and the Play Store can be summed up in 5 letters: C-H-I-N-A.  One app store has Chinese revenue and the other doesn't.
    Except you forgot that Android has 5-6x the market share of iOS.  That should give Google Play the advantage, right?  Even without C-H-I-N-A.  
    Google Play is but one store of dozens selling Android-compatible apps even if the major one in the Western Hemisphere. Many of the others might serve regions in the Far East, India, and Southeast Asia with unique wants or languages while some others are erstwhile Google Play competitors like Amazon, Apptoide, F-Droid and even app stores offered by the OEM's themselves, ex. Samsung, Huawei, LG and Sony. 

    Before you can comment accurately you first have to understand what you're even commenting about. The factual takeaway is that Apple makes more revenue from their App Store than Google does from theirs. That's a fact. Zero dispute.

    Extending that to "all of Android" isn't necessarily so, and probably isn't IMHO.

    https://buildfire.com/mobile-app-stores-list/
    edited June 2019
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  • Reply 16 of 33
    1STnTENDERBITS1stntenderbits Posts: 460member
    MacPro said:
    It must be a nightmare for Android developers when so few users update and so many versions of the OS out there on so many disparate types of hardware.
    It's not a nightmare.  They can simply choose to support back to the oldest version of the OS that they think can garner the most ROI.  Remember, they're not targeting the different OEM skins of Android.  Also I'd be willing to bet a lot (the majority) of the disparity between the revenue from the App Store and the Play Store can be summed up in 5 letters: C-H-I-N-A.  One app store has Chinese revenue and the other doesn't.
    Except you forgot that Android has 5-6x the market share of iOS.  That should give Google Play the advantage, right?  Even without C-H-I-N-A.  
    I didn't forget and no, it wouldn't give Google Play the advantage because Google Play doesn't serve that 5-6x market share.  Did you forget that you can't say Android has 5-6x the market share of iOS without including the market share of C-H-I-N-A?  So you can't include China's market share A-N-D discount China's contribution to the revenue argument.  They go hand in hand.  If you include the market share of Android's totality, you have to include the revenue of Android in China with the revenue of Android via Google Play.  If you discount the revenue, you have to discount the market share.

    Look at it this way.  Compare the App Store to the Play Store.  There are essentially 2 large markets (China and US), 1 secondary market (Europe), and the rest.
    The App Store serves the largest market share (by default in China since the Play Store doesn't serve it at all) in both of the large markets - China and the US.  The Play Store only serves one of those markets (the US) AND serves the smaller market share in the in it.  Play Store also serves a larger group in Europe and the rest, but they pale compared to the 2 big boys.

    tl;dr Math says as long as the market conditions remain the same, the Play Store will never equal the revenue of the App Store.  The App Store serves a far larger group of customers than the Play Store.
    edited June 2019
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  • Reply 17 of 33
    sflocalsflocal Posts: 6,161member
    Has there ever been a blip in the history of GooglePlay where it made more than iOS, even for one minute?
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  • Reply 18 of 33
    gatorguygatorguy Posts: 24,733member
    sflocal said:
    Has there ever been a blip in the history of GooglePlay where it made more than iOS, even for one minute?
    Nope. Never will.

    There's too many Android appstore alternatives and Google Play lacks access to 100's of millions of Android handsets in regions they don't service. They'll still manage several $Billions in profit but certainly not as much as Apple.
    edited June 2019
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  • Reply 19 of 33
    ericthehalfbeeericthehalfbee Posts: 4,491member
    gatorguy said:
    sflocal said:
    Has there ever been a blip in the history of GooglePlay where it made more than iOS, even for one minute?
    Nope. Never will.

    There's too many Android appstore alternatives and Google Play lacks access to 100's of millions of Android handsets in regions they don't service. They'll still manage several $Billions in profit but certainly not as much as Apple.

    That's not the reason why Google Play will never match The App Store. Currently Google Play has about 2x the users as The App Store for a market share difference of 66% to 33%. Yet despite that clear advantage The App Store still generates substantially more revenue. This is simply due to the fact that the entire 33% of iPhone users represents flagship users with money to spend. That 66% that Google has includes flagships along with low-end devices. Google Play simply doesn't have enough flagship users to generate revenues to match The App Store. Further, there are no quality Android tablet Apps to generate revenue so Apple basically has this entire market to themselves.

    Third party stores are irrelevant, except to people trying to claim Android is somehow winning at "something".
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  • Reply 20 of 33
    gatorguygatorguy Posts: 24,733member
    gatorguy said:
    sflocal said:
    Has there ever been a blip in the history of GooglePlay where it made more than iOS, even for one minute?
    Nope. Never will.

    There's too many Android appstore alternatives and Google Play lacks access to 100's of millions of Android handsets in regions they don't service. They'll still manage several $Billions in profit but certainly not as much as Apple.

    That's not the reason why Google Play will never match The App Store. Currently Google Play has about 2x the users as The App Store for a market share difference of 66% to 33%. Yet despite that clear advantage The App Store still generates substantially more revenue. This is simply due to the fact that the entire 33% of iPhone users represents flagship users with money to spend. That 66% that Google has includes flagships along with low-end devices. Google Play simply doesn't have enough flagship users to generate revenues to match The App Store. Further, there are no quality Android tablet Apps to generate revenue so Apple basically has this entire market to themselves.

    Third party stores are irrelevant, except to people trying to claim Android is somehow winning at "something".
    Not doubting you're 100% accurate but where did you see that Google Play has twice as many active users as the AppStore? 

    As for writing off other Android appstores you honestly want to claim 750M+ Chinese users of Android devices don't matter, the app stores servicing them "irrelevant"? Seriously? LOL!

    There's sources with data showing Google can sell to less than half the Android install base with the majority of "Android" devices in regions that Google Play does not service. In general there are NO regions selling iOS devices that Apple cannot service are there?

    On a per user basis i have zero doubt you are correct about the potential app revenue. As an OS platform I think you might be wrong. 
    edited June 2019
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