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Google Play Store makes far less revenue than Apple App Store

Clearly, more people on Android are using free apps.

  • Published: May 30, 2018 10:31 AM IST
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While the Google Play Store has overtaken Apple’s App Store in terms of sheer numbers, it still lags behind in terms of revenue. According to a report by Morgan Stanley Research, Apple makes four times as much net revenue from its iOS App Store than the Google Play Store, and ten times as much per device. This shows that while the Android app market may be larger, app revenues continue to be driven by iOS devices.

In absolute numbers, the net revenue per download on the App Store is $0.44, while the corresponding figure for the Google Play Store is $0.10. When we compare per-device figures, the App Store makes $5.08 while the Google Play Store earns $0.47. While Google’s growth in this segment has been flat since 2014, Apple has registered over 100 percent growth in revenues in the same period.

 

Of course, a lot of this comes down to the fact that Apple iPhone and iPad buyers naturally have higher spending power, considering the large cost of buying into the ecosystem in the first place. Apple products are premium devices, and buyers who can afford the devices naturally have a better ability to purchase paid apps and in-app purchases as well. In comparison, Google’s Android platform appeals to a wider audience with its products priced across the range. A lot of these buyers may be averse to spending money on an app, preferring to use free apps and games instead.

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Furthermore, the lower capabilities of budget Android devices may mean that a lot of these buyers just use basic free apps for their phones, rather than investing in quality premium apps. However, these numbers don’t really affect end-users, and even Google may not be too concerned about the figures given the difference in usage and customer base.

  • Published Date: May 30, 2018 10:31 AM IST