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App Store generates 6 times more profit than Android Market

Posted: , by Victor H.

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App Store generates 6 times more profit than Android Market
We all knew the App Store was the most profitable app catalog out there, but recent findings from Distimo show just how shockingly more cash it yields for developers. The top 200 apps in the App Store generate 6 times the profits of those in the Android Market. This makes it obvious why most programmers focus on iOS first and Android is usually only second-best.

The stats were all published by Distimo reporting about the January to November state of the application markets. Other interesting findings include the fact that Microsoft’s Windows Marketplace has outgrown the Nokia Ovi Store and the RIM BlackBerry App Worlds. 

The Android Market however remains the place to go for bargain hunters - Google’s mobile market has the most free apps, but the freemium model is picking up on the App Store as well. 

Sales of iPhone apps generate the biggest income, followed by iPad titles and last come Android app releases. iPhone app sales alone have generated four times more cash than Android Market apps, while iPad apps - double those in the Market in terms of cash yield.

The most popular apps remain Angry Birds, Facebook and Skype.

source: Distimo via SlashGear

App Store generates 6 times more profit than Android Market

36 Comments
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posted on 21 Dec 2011, 08:15 17

1. SuperAndroidEvo (Posts: 3847; Member since: 15 Apr 2011)


Because the Android Market has more free apps than the App Store. Now if the Android Market was like the App Store & sold 0.99 apps all the time then these numbers would not be such a huge deal.

There are 2 different styles here. The Android Market makes money from ads & the App Store makes money on apps sold. Both have thriving markets.

posted on 21 Dec 2011, 08:17 6

2. atheisticemetic (Posts: 377; Member since: 18 Dec 2011)


exactly. first rule of statistics is HOW you interpret the information that is given to you.

Android has free apps (and makes its money on ads unfortunately for the most part). How do you expect to make more money than something that charges for most of their applications?

Hey btw did you know oranges are orange? ;)

posted on 21 Dec 2011, 09:06 7

10. fervid (Posts: 173; Member since: 22 Nov 2011)


Androids should be codenamed Orange since we are always comparing Apples to Oranges.

posted on 21 Dec 2011, 11:37 2

23. gallitoking (Posts: 4684; Member since: 17 May 2011)


@atheisticemetic..wrong the money that Android makes from ads is minimal... we are talking about PROFIT... Android with ads,,, dont make lots of profit,,, so please dont make excuses...

posted on 21 Dec 2011, 12:10 3

26. iamcc (Posts: 1319; Member since: 07 Oct 2011)


Where did you hear this? I would be interested to see hard numbers on what is brought in by mobile ads...

posted on 21 Dec 2011, 15:24 3

30. gallitoking (Posts: 4684; Member since: 17 May 2011)


Google gets 96% revenue from ads... and according to this article ( proof) they are not getting lots of profits.... well I dont know what is so hard to understand... you want me to go kidergarten on you?.. only if you bring me an ...apple..

posted on 22 Dec 2011, 02:01 2

35. godspeed (Posts: 4; Member since: 22 Dec 2011)


Well what you posted seems to rely on presumptions. As a matter of fact, most apps DO generate way more income by ads than they would by selling the app. This is why the majority of android developers choose this model.

Ant Smasher has more than 10 mio downloads. They generate more than 2 mio $ income by ads. This dimensions could have never been achieved with paid apps. Actually it is just the other way round. People are learning, thats its more profitable to release free apps with ads.

Angry Birds is free on Android and has achieved more than 50 mio downloads allready. At the same time only 12 mio copies were sold on app store. 12 mio for 0.79$ means around 0.60$ find their way into their pockets. That makes up 7.2 mio $. I bet the amount of money generated by the android ads is way higher. Roughly about 9 mio$. And this is per year, whereas purchase is only accounted once.

posted on 21 Dec 2011, 08:38 4

5. taz89 (Posts: 2014; Member since: 03 May 2011)


exactly,could not have said it better.

posted on 21 Dec 2011, 11:34 2

22. gallitoking (Posts: 4684; Member since: 17 May 2011)


and Android is open system and iOS is not.. Android likes market share and iOS sales... nothing we havent heard before SAE

posted on 21 Dec 2011, 16:32 1

32. paulyyd (Posts: 326; Member since: 08 Jan 2011)


@superandroid right cause everyone loves ads when they're using an app.....

posted on 21 Dec 2011, 08:20 5

3. arcq12 (Posts: 733; Member since: 13 Oct 2011)


above comment are so true. AngryBirds games are even free on Android Market Place while you have to pay $0.99 or $1.99 on the AppStore.

posted on 21 Dec 2011, 08:51 3

8. tacohunter (Posts: 408; Member since: 06 Nov 2011)


Nope we got a free version of angrybirds, seasons, etc as well.

Can you give me an article that compares the prices between the app store and android market? Not an to old pls.

posted on 21 Dec 2011, 09:21 3

11. taz89 (Posts: 2014; Member since: 03 May 2011)


correct me if am wrong but from what i remember when i had my ip4 was that the app store has angry birds lite which are free but dont have all the levels and the android market is free with all the levels again sorry if am wrong,have not used a iphone since may.

posted on 21 Dec 2011, 08:33 5

4. iShepherd (Posts: 38; Member since: 17 Oct 2011)


Without including the ad revenue that companies pump into the android market, which is substantial, this analysis is totally worthless.

posted on 21 Dec 2011, 08:41 2

6. taz89 (Posts: 2014; Member since: 03 May 2011)


lets see if someone reports who makes more money from the freemium model and who makes the most ad revenue from free apps...

posted on 21 Dec 2011, 08:46 4

7. Dmann (Posts: 165; Member since: 17 Oct 2011)


If you take the previous article about iAd not bringing too much cash, this disparity would get smaller.

Unless ads are already taken account.

I have a personal example. My brother has bought 2 apps on his iPad. Angry Birds and Cut the Rope.

I have both. One for free on the market and the other on Getjar. But I have the ads and can´t update Cut The Rope regularly.

I think this example reflects really well what happens on both ecosystem. In the end everything comes down to preference. If I had an iPad/iPhone, I wouldn´t mind paying. I just prefer Android as an OS.

posted on 21 Dec 2011, 08:56 4

9. trin (Posts: 88; Member since: 11 May 2010)


Smh, more nestle trollhouse cookies for da kids huh PA?

posted on 21 Dec 2011, 09:22 4

12. GALAXY-S (Posts: 701; Member since: 07 Jun 2011)


Go windows marketplace!! woowhoo!! Already outgrowing Blackberry app world!!

posted on 21 Dec 2011, 09:36 2

13. taz89 (Posts: 2014; Member since: 03 May 2011)


dont think thats really a surprise and nothing to cheer about lol, windows does look interesting and once its matured more ie removable memory is a must for me,folders,drag and drop then i will give it a go and think with nokia on board they will be pushing microsoft to implement these features sooner rather than later..

posted on 21 Dec 2011, 10:10

17. GALAXY-S (Posts: 701; Member since: 07 Jun 2011)


I went down to the tmobile store last weekend and tried some windows phone from htc and it was actually pretty nice and smooth.. ill maybe purchase me one off of craigslist or something and try it out. Its exciting to see it grow though

posted on 21 Dec 2011, 09:40 6

14. iosmaster (Posts: 115; Member since: 06 Jul 2011)


Its about having the best apps the best games and pay for them to be adfree AppMarket rules that, android Market doesnt sucks but its not even near to the iOS AppMarket.

posted on 21 Dec 2011, 09:51 1

15. taz89 (Posts: 2014; Member since: 03 May 2011)


agree the app store is mostly superior to the market but since moving from the ios to android i have never felt that the market was lacking in any apps,just like the app store their is an app for everything..the best thing about the app store is that it gets the apps 1st but apps are coming to the market from ios quicker than before,but yeah the app store is better right now but its not so much better that makes the market look bad...300,000 apps is a lot in itself and has everything you would need. :)

posted on 21 Dec 2011, 10:06 3

16. tha.fox (Posts: 100; Member since: 30 Nov 2011)


proof that apple is money hungry

posted on 21 Dec 2011, 10:30 7

18. iosmaster (Posts: 115; Member since: 06 Jul 2011)


proof u need a girlfriend

posted on 21 Dec 2011, 10:41 5

19. iamcc (Posts: 1319; Member since: 07 Oct 2011)


Coming from the dude named "iosmaster"...

posted on 21 Dec 2011, 10:47 8

20. iosmaster (Posts: 115; Member since: 06 Jul 2011)


you noob my GF its called Siri BTW noob

posted on 21 Dec 2011, 11:18 2

21. ZayZay (Posts: 556; Member since: 26 Feb 2011)


you said noob twice.

posted on 21 Dec 2011, 12:03 3

25. EclipseGSX (Posts: 1566; Member since: 18 Oct 2011)


Your GF is Siri? Your parents must be so proud...

posted on 21 Dec 2011, 12:11 3

27. iamcc (Posts: 1319; Member since: 07 Oct 2011)


See, I thought I had a pretty good point when I pointed out that the guy named iosmaster shouldn't be making comments about people getting girlfriends.

Then you came out and said that. Thanks.

Case closed.

posted on 21 Dec 2011, 12:02 1

24. acs2acs2 (Posts: 2; Member since: 15 Dec 2011)


Its not about how much they get, its about what and how we USERs get something

posted on 21 Dec 2011, 12:45 4

29. 530gemini (Posts: 2198; Member since: 09 Sep 2010)


Of course the appstore would generate more money than the android marketplace.

Ios users are willing to pay for apps for the convenience of not having to see those annoying ads every time you open an app and just enjoy the app in its full glory. Giving ios users, again, a better user experience. While android users have to deal with those ads popping up at the top and bottom of their screens when they open their apps, and can't do anything about it because it's free :)

Google wants those ads on your apps. Why? Because they want profit, profit, profit, lol. And what do fandroids say about Apple again?

With ios, developers make more money. With android, google makes good profit through ads, while developers make less money :) But of course according to fandroids, google is about giving and giving :) Giving more ads, hahahahahaha

posted on 21 Dec 2011, 15:45 1

31. taz89 (Posts: 2014; Member since: 03 May 2011)


well if you learn about Google...they have been giving a lot money to good causes. .so yeah Google do give....
m.news24.com/news24/SciTech/News/Google-to-fight-modern-slavery-20111214
I

posted on 21 Dec 2011, 18:55 1

33. 530gemini (Posts: 2198; Member since: 09 Sep 2010)


Then there you have it. Ios users are happy with our user experience, while android users are happy to see ads on their apps because they like to believe that google is now a non-profit organization whose profits go to charities. We're all happy :)

posted on 21 Dec 2011, 19:34 1

34. taz89 (Posts: 2014; Member since: 03 May 2011)


lol like to believe...are you saying I am imagining that article now...also I never meant Google have become a charitable company...my point was to show Google do give where as you were trying to say they don't...if not helping charity is not giving then please tell what is considered giving.

posted on 22 Dec 2011, 16:50

36. akhi216 (Posts: 61; Member since: 01 May 2011)


FACT: Over 75% of revenue comes from in-app payments. I own a Droid 3 and an iPod Touch 4th generation and I can say that iOS's in-app payment system is leaps and bounds ahead of Android's in-app payment system. With iOS, you get your digital content instantly. I can't say the same for Android; sometimes it takes minutes, hours, and sometimes even days to get your digital content, and sometimes you don't get it. Also, with iOS you can backup games and return to them later. You can do this on Android unless you hack your device; a lot of people say that Android does things out of the box that you have to hack iOS to do, but here is an instance where you have something important that you have to hack Android to get it to do. I'm pretty sure that this leads people to make more in-app purchases on iOS than Android hence the fact that an overwhelming majority of app money comes from in-app payments. If Android fixes their in-app purchase system by presumably backing them up to Google's servers, then they would keep up with iOS, but I don't think that that'll happen because Android is open source.

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