Apple's iOS App Store users spent $11.5 billion in Q4, 95% more than Google Play

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in iPod + iTunes + AppleTV
Google's Android store is pushing record numbers of app downloads to its users, with growth largely coming from developing countries. Android's ecosystem remains far less profitable than Apple's iOS App Store, however, which again grabbed the lion's share of customer spend on mobile apps despite handling fewer than half as many downloads.


Source: App Annie


A report by app analytics firm AppAnnie stated that Google Play is now serving 145 percent more apps globally, even despite having little influence in China, the world's largest and most commercially important audience of app users.

In the winter quarter, new app downloads (not counting re-installs or updates) across both stores approached 27 billion, with Google Play representing more than 19 billion and the App Store accounting for roughly the remaining 8 billion. The pace of downloads globally grew at 7 percent over the previous year.

However, revenue from app sales and subscriptions grew far faster: 20 percent over the previous year. Of a total a $17 billion spent on mobile apps, Apple accounted for $11.5 billion, leaving Google with the scraps: around $5 billion despite processing nearly one and a half times as many downloads.

Rather than rushing to claim market share in hardware units, Apple has focused on building a valuable customer base, not only in the U.S., Europe and Japan, but in China--a region that most American hardware and software firms have been essentially locked out of--as well as in emerging regions including India and Vietnam.

As a result, Apple is not only earning sustainable hardware profits but is also attracting valuable customers who buy services and pay for apps. AppAnnie noted that the top grossing app by customer spend was Netflix. Low commercial performance relative to Apple by Google Play indicates that Android users are significantly less likely to be paying for subscription content. The high rate of bootleg apps and content shared among Android users has the side effect of causing developers to focus premium app development on iOS first, and often exclusively.
watto_cobra
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Comments

  • Reply 1 of 29
    More numbers that show Apple is going to announce that Q1 2018 (or as some call it Q4 2017 or holiday shopping season) was a monster quarter.
    magman1979watto_cobra
  • Reply 2 of 29
    More numbers that show Apple is going to announce that Q1 2018 (or as some call it Q4 2017 or holiday shopping season) was a monster quarter.
    iPhone X ftw!
    magman1979racerhomie3watto_cobra
  • Reply 3 of 29
    i'm not quite sure i understand these numbers and where that 95% number comes from ?

    BUT it's simply astonishing how well Apple manage to outperform Google in this respect. Google have got no excuse for not doing better.

    Out of interest; if Google are 'having little influence in China' who is?
    watto_cobra
  • Reply 4 of 29
    tzeshantzeshan Posts: 1,887member
    One important reason Google Play collects only half as much money as iOS is Google did not copy Apple ID with a Google ID.
  • Reply 5 of 29
    tzeshan said:
    One important reason Google Play collects only half as much money as iOS is Google did not copy Apple ID with a Google ID.
    Could you please explain? I have no experience with Android or Google Play. Do you not have to pay for apps when they are downloaded?
    watto_cobra
  • Reply 6 of 29
    gatorguygatorguy Posts: 20,282member
    Google's Android store is pushing record numbers of app downloads to its users, with growth largely coming from developing countries. Android's ecosystem remains far less profitable than Apple's iOS App Store, however, which again grabbed the lion's share of customer spend on mobile apps despite handling fewer than half as many downloads. Of a total a $17 billion spent on mobile apps, Apple accounted for $11.5 billion, leaving Google with the scraps: around $5 billion
    Some kinda scraps, taking 30% of that $5B for themselves to the tune of $1.5 billion for a single quarter?  Hey it's not Apple. OK. It's still a more profitable venture than many Fortune 1000 companies.

    To the poster who asked about China and why that matters: According to the AI article China is Apple's most profitable market, surpassing even the US, and a country where Google has no Play Store and thus no app income. Games are a BIG DEAL in China, and games and the associated in-app purchases account for roughly 75% of Apple's total App Store revenues. 

    EDIT: TBH I didn't even know about subscribing to Netflix via a smartphone app. I would'a thought most folks would just subscribe direct, or via the link when they use a smart TV or Roku. So now I know.
    edited January 2018
  • Reply 7 of 29
    jd_in_sbjd_in_sb Posts: 1,483member
    “95% more” is misleading. It would be clearer to say “twice” so you wouldn’t have to mark up your bar chart explaining that Google didn’t make just 5% of what Apple did. 
    edited January 2018 anton zuykov
  • Reply 8 of 29
    auxioauxio Posts: 1,975member
    kkqd1337 said:
    BUT it's simply astonishing how well Apple manage to outperform Google in this respect. Google have got no excuse for not doing better.
    When someone gets a phone for the sole reason that it's $0, how much do you think they're going to want to spend on apps?

    Now obviously I understand that's not the entire Android user base, but it's a much larger portion than it is of the iOS user base.
    StrangeDaysboltsfan17racerhomie3watto_cobra
  • Reply 9 of 29
    boltsfan17boltsfan17 Posts: 2,158member
    auxio said:
    kkqd1337 said:
    BUT it's simply astonishing how well Apple manage to outperform Google in this respect. Google have got no excuse for not doing better.
    When someone gets a phone for the sole reason that it's $0, how much do you think they're going to want to spend on apps?

    Now obviously I understand that's not the entire Android user base, but it's a much larger portion than it is of the iOS user base.
    That's a great point. I'm sure the majority of Android phones sold are the cheap bargain ones, not flagship models like the Note 8 or Galaxy S8. 
    magman1979watto_cobra
  • Reply 10 of 29
    Different business models. Apple wants to make more money from a smaller number of higher-paying customers. Google wants to get its product in front of as many eyes as possible and sell advertising. I think it made about $50B last year from mobile ads - a lot of that on iOS. It wouldn't make sense for Google to shift its strategy and focus only on the high end and lose the ad revenue. Their goal is to make technology cheap to everyone benefits.
    muthuk_vanalingam
  • Reply 11 of 29
    Speaking for myself, I’ve been spending anywhere from $5 to $10 to $20 or more on very useful apps for my iPad Pro. Quality is just unbelievably high these days.
    magman1979rich gregory
  • Reply 12 of 29
    gatorguygatorguy Posts: 20,282member
    auxio said:
    kkqd1337 said:
    BUT it's simply astonishing how well Apple manage to outperform Google in this respect. Google have got no excuse for not doing better.
    When someone gets a phone for the sole reason that it's $0, how much do you think they're going to want to spend on apps?

    Now obviously I understand that's not the entire Android user base, but it's a much larger portion than it is of the iOS user base.
    Games more so than apps per-se. 75% or thereabouts of Apple's total App Store revenue comes from games and their in-app purchases, and folks with more money are less concerned with how much they spent on the silliness. There's also many other Android app stores besides Google Play selling Android apps that developers (hopefully!) profit from so the actual spread between what's spent by Android buyers overall compared to Apple's is probably far less. Now add in the fact that China is responsible for more App Store revenue than any other country in the world and it's a no-brainer that the App Store would be out-performing Google Play. Must be hard for Google to manage if they're only seeing a measly $5-7B in profit on $20B+/- in sales from Google Play this year. Fail.
    singularitymuthuk_vanalingam
  • Reply 13 of 29
    2old4fun said:
    tzeshan said:
    One important reason Google Play collects only half as much money as iOS is Google did not copy Apple ID with a Google ID.
    Could you please explain? I have no experience with Android or Google Play. Do you not have to pay for apps when they are downloaded?
    Android users do have to pay for apps as well. However android users are not as willing to pay for apps and tend to stick to the free ones. Also it is much easier for apps to be pirated on android. 
    magman1979SpamSandwich
  • Reply 14 of 29
    magman1979magman1979 Posts: 1,114member
    gatorguy said:
    Google's Android store is pushing record numbers of app downloads to its users, with growth largely coming from developing countries. Android's ecosystem remains far less profitable than Apple's iOS App Store, however, which again grabbed the lion's share of customer spend on mobile apps despite handling fewer than half as many downloads. Of a total a $17 billion spent on mobile apps, Apple accounted for $11.5 billion, leaving Google with the scraps: around $5 billion
    Some kinda scraps, taking 30% of that $5B for themselves to the tune of $1.5 billion for a single quarter?  Hey it's not Apple. OK. It's still a more profitable venture than many Fortune 1000 companies.

    To the poster who asked about China and why that matters: According to the AI article China is Apple's most profitable market, surpassing even the US, and a country where Google has no Play Store and thus no app income. Games are a BIG DEAL in China, and games and the associated in-app purchases account for roughly 75% of Apple's total App Store revenues. 

    EDIT: TBH I didn't even know about subscribing to Netflix via a smartphone app. I would'a thought most folks would just subscribe direct, or via the link when they use a smart TV or Roku. So now I know.
    Leave it to our resident Google PR representative to attempt to put ANY kind of positive spin on this DISMAL stat for Google.

    This just reinforces that Harvard study done that Android users are financially less secure and lower education, and tend to go much more for the free crap apps whenever they can, or blatantly steal from third-party sources and end up with infected devices.
  • Reply 15 of 29
    gatorguygatorguy Posts: 20,282member
    gatorguy said:
    Google's Android store is pushing record numbers of app downloads to its users, with growth largely coming from developing countries. Android's ecosystem remains far less profitable than Apple's iOS App Store, however, which again grabbed the lion's share of customer spend on mobile apps despite handling fewer than half as many downloads. Of a total a $17 billion spent on mobile apps, Apple accounted for $11.5 billion, leaving Google with the scraps: around $5 billion
    Some kinda scraps, taking 30% of that $5B for themselves to the tune of $1.5 billion for a single quarter?  Hey it's not Apple. OK. It's still a more profitable venture than many Fortune 1000 companies.

    To the poster who asked about China and why that matters: According to the AI article China is Apple's most profitable market, surpassing even the US, and a country where Google has no Play Store and thus no app income. Games are a BIG DEAL in China, and games and the associated in-app purchases account for roughly 75% of Apple's total App Store revenues. 

    EDIT: TBH I didn't even know about subscribing to Netflix via a smartphone app. I would'a thought most folks would just subscribe direct, or via the link when they use a smart TV or Roku. So now I know.
    Leave it to our resident Google PR representative to attempt to put ANY kind of positive spin on this DISMAL stat for Google.

    This just reinforces that Harvard study done that Android users are financially less secure and lower education, and tend to go much more for the free crap apps whenever they can, or blatantly steal from third-party sources and end up with infected devices.
    Dismal? LOL. You should have such a dismal future. Yes Google makes less money than Apple. What company doesn't? Anyone compared to Apple comes out on the short side. You needed reassurance?

    And as far as Android buyers having less disposable cash than iPhone buyers that's another no-brainer, no Harvard study required (obviously). Ya got more money and ya' got less worry about the budget and ya buy more expensive stuff...
    but we need a study to demonstrate that. :)
    edited January 2018 singularitymuthuk_vanalingam
  • Reply 16 of 29
    avon b7avon b7 Posts: 3,472member
    'Google', 'Google's Android Store', 'Play Store', 'Android.'

    This article seems to mix it all up into one big mish mash and steps over the reality that 'Android' is more than the 'Play Store' when it comes to apps even if it does mention Google's lack of presence in China

    Drawing conclusions on 'Android users' by just looking at 'Play Store' data is disingenuous apart from missing the real point on app store revenue in a Google perspective. Google uses Android to spread its revenue generators out to users, one of which just happens to be the Google Play Store. Apart from that, its revenue generators extend beyond Android to Apple's hardware and into many other areas.

    singularity
  • Reply 17 of 29
    tmaytmay Posts: 3,563member
    gatorguy said:
    Google's Android store is pushing record numbers of app downloads to its users, with growth largely coming from developing countries. Android's ecosystem remains far less profitable than Apple's iOS App Store, however, which again grabbed the lion's share of customer spend on mobile apps despite handling fewer than half as many downloads. Of a total a $17 billion spent on mobile apps, Apple accounted for $11.5 billion, leaving Google with the scraps: around $5 billion
    Some kinda scraps, taking 30% of that $5B for themselves to the tune of $1.5 billion for a single quarter?  Hey it's not Apple. OK. It's still a more profitable venture than many Fortune 1000 companies.

    To the poster who asked about China and why that matters: According to the AI article China is Apple's most profitable market, surpassing even the US, and a country where Google has no Play Store and thus no app income. Games are a BIG DEAL in China, and games and the associated in-app purchases account for roughly 75% of Apple's total App Store revenues. 

    EDIT: TBH I didn't even know about subscribing to Netflix via a smartphone app. I would'a thought most folks would just subscribe direct, or via the link when they use a smart TV or Roku. So now I know.
    WRT subscriptions, I would happily pay a reasonable premium just to have iTunes Store manage those subscriptions. It would be easier to turn them on and off, allowing a more efficient streaming experience overall, not to mention the convenience of a single media payee. I would think that some Google and Amazon users would also find going through a store useful, even if at a small premium. 


  • Reply 18 of 29
    p-dogp-dog Posts: 12member
    jd_in_sb said:
    “95% more” is misleading. It would be clearer to say “twice” so you wouldn’t have to mark up your bar chart explaining that Google didn’t make just 5% of what Apple did. 
    It is not misleading. If I earn $5.00 per hour and you earn $10.00 per hour, you earn double what I earn, i.e. 100% more. Apple earns a profit from its App Store that is slightly less than double what Google earns from its Google Play store, thus Apple earns 95% more profit than Google (from selling mobile apps). If Apple had earned exactly double what Google made, it would have been 100% more profit.
  • Reply 19 of 29
    That graph is wrong. The bottom of the “95%” line should be at the level of the green staple, not the 5B line.
    edited January 2018
  • Reply 20 of 29
    kkqd1337 said:

    Out of interest; if Google are 'having little influence in China' who is?
    Uhh, Apple.

    you need to realize that the bulk of cell-phone sales in China are dumb-phones.
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