Apple's App Store generated 85% more revenue than Google Play in Q1 2014

Apple's App Store generated 85% more revenue than Google Play in Q1 2014
Remember the old days when downloads from the App Store swamped those coming from the Android Market? Those days are long gone, according to a new report from App Annie. Thanks to the amazing success of the Android platform, world-wide downloads from the Google Play Store during the first quarter of the year outnumbered those originating from the App Store by 45%. In the previous quarter, downloads from the Google Play Store had topped downloads from the App Store by 35%.

But when it comes down to money (doesn't everything?), the App Store is on top. For developers, that is the bottom line. For the period from January through March, the iOS application marketplace brought developers 85% more cash than the amount received by the code jockeys writing for the Google Play Store.  Despite that large lead, the report states that the revenue gap between the two rival platforms decreased in areas like the U.S. and the U.K. During the first quarter, Google Play revenue soared 55% in the U.S. sequentially, and by 25% in the U.K.

Meanwhile, Google depended heavily on emerging markets for its lead over Apple in app downloads. That makes sense since low priced Android phones outsell the iPhone in those areas. In China, where the Apple iPhone is now available from the world's largest carrier in China Mobile, app downloads soared 70% sequentially.

As you would expect, games represent the top category of apps being downloaded. Three out of every four apps downloaded from the App Store is a game, and that percentage is even higher for the Google Play Store, where a whopping 90% of apps downloaded are games. Messaging apps on both platforms received a shot in the arm from Facebook's $19 billion acquisition bid for WhatsApp. Bringing in revenue for Android developers was the Tools category, where fears of malware led users of Android flavored devices to purchase anti-virus apps.


source: AppAnnie via PCWorld

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60 Comments

60. LiquidGalaxy

Posts: 332; Member since: Jul 03, 2013

Yup, and that was one of, if not THE main reason i never stuck with Android...poor store in comparison to Apples.

56. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

PA newsflash: "1% have, spend, more money than the 99%".

54. JMartin22

Posts: 2426; Member since: Apr 30, 2013

Don't give me this BS about Android being a hotbed for piracy. Even iOS has the same community of crackers and modders, which dedicate themselves to relinquishing premium content for free or monetizing access to it

50. scsa852k

Posts: 331; Member since: Oct 16, 2012

Android users are cheap I can say that cuz I only used Android phones.

40. flipjzn

Posts: 257; Member since: Jun 22, 2012

Because many android users dl crackec versions that hurts developers, that's why. You can find apks everywhere. Even ios jailbreak community esp Cydia works on stopping piracy.

31. JMartin22

Posts: 2426; Member since: Apr 30, 2013

How much money Google's ecosystem makes, matters to anyone of us that has an Android product exclusively. If the Google Play Store isn't as profitable as the Apple App Store by such a huge margin, that means all the highest quality applications will come to iOS first and stay there for a long time period or permanently stay exclusive there. Google seriously needs to focus on this issue.

32. Ninetysix

Posts: 2967; Member since: Oct 08, 2012

ding ding ding.. Winner!

35. ardent1

Posts: 2000; Member since: Apr 16, 2011

Apple or Google don't make very much from iTune or Google Play cards, respectively. In the case of Apple, 70% goes to developers and I estimate 10% goes to retailers of the iTune cards. That leaves Apple with 20% margin to run and maintain the App store, deal with billing issues, and other headaches. 20% gross margins is not large unless Apple gets economies of scale and scope. Another key datapoint is what Costco charges for the Google Play cards because Costco traditionally sets its profit margin at 14% over cost. That means you back into the price Google charges Costco for these cards. The main reason for the apps is "stickiness" -- getting customers to sticky to an ecosystem. With the thousands of dollars that I've dumped into Apple devices, it makes it hard for me to make a clean break.

37. jellmoo

Posts: 2701; Member since: Oct 31, 2011

I think that for most people, the monetary investment into a platform isn't as big as they may think it is. I mean, there will always be outliers like yourself if you have thousands invested into a platform, but I don't think most people have anywhere near that financial investment. For example, after having used Android for a few years now (and still use it for my phone), I picked up an iPad Mini2. I found myself not actually losing out on all that much. My Play Books transferred over just fine, and by and large I didn't need to re-purchase anything pivotal that I had on my Nexus 7.

42. networkdood

Posts: 6330; Member since: Mar 31, 2010

Wrong, no one should care less about how much money these 'ecosystems' are making. If one goes under, then another company will create one to take its place.

30. AfterShock

Posts: 4147; Member since: Nov 02, 2012

So the apps are more expensive on iOS. Its like users are hemorrhaging their money using iOS. Truly this is just another form of taxing its users to the wall to own a iPhone an be able to use popular apps as well. The whole damn IOS,garden an hardware is money sucking malware. $790 for a 16 5c just earlier today, yeah sure its a quality thing that seperates, right.

44. networkdood

Posts: 6330; Member since: Mar 31, 2010

The reality of it is that people who buy iPhones really are not rich, or any wealthier than those with Android devices...but, when one is an iZombie, one will do whatever it takes to get their latest devices, or even a low priced 5C device...

45. Ninetysix

Posts: 2967; Member since: Oct 08, 2012

And then you woke up and faced reality. Your hate is clouding your judgement as well as the world you live in. Keep on imagining that reality of yours and maybe one day it'll come true. http://macdailynews.com/2014/03/25/apples-ios-dominates-in-richer-countries-android-in-poorer-regions/ http://www.americanbazaaronline.com/2014/04/07/iphone-users-rich-android-users-belong-middle-lower-class-study/

48. darkkjedii

Posts: 31807; Member since: Feb 05, 2011

Dude you're killing him lol, cut him some slack. You know he's a a typical I can't afford iOS hater.

52. Topcat488

Posts: 1425; Member since: Sep 29, 2012

You really think it's a good idea to post bias surveys... Macdailynews, get the f%c!# outta here. Cyprus and France are not rich countries, the USA is over 14 trillion dollar in debt, Switzerland who uses Android 2 to 1 according to your survey is one of the richest countries in Europe along with Germany who also uses MORE Android phones. Next time post a creditable believable survey. O.o

53. Ninetysix

Posts: 2967; Member since: Oct 08, 2012

Not smart enough to figure out the source? http://thenextweb.com/mobile/2014/03/25/report-android-dominates-global-mobile-web-browsing-but-ios-owns-key-western-countries/ How about YOU post a survey where it says Android is widely used by the rich. Truth is so hard to swallow sometimes. You can join networkdood in your own alter reality.

55. Topcat488

Posts: 1425; Member since: Sep 29, 2012

I don't need to post any surveys, I'm not a Fanboy... Android can stand on it's on, your post just repeat the same ole nothingness. I'm rich enough to afford Apple, Android, WP or whatever. Get a life dude and stop eating those Apple smegma sandwiches. O.o hahaha say cheese!

57. Ninetysix

Posts: 2967; Member since: Oct 08, 2012

You got nothing. Got it :)

26. networkdood

Posts: 6330; Member since: Mar 31, 2010

Android just means more choices ...more apps...less money spent...Apple products mean....well, I think some people can finish my sentence here....

29. Ninetysix

Posts: 2967; Member since: Oct 08, 2012

more exclusive apps, better apps, better games, faster updates. Put yourself in the developer's shoes. Which platform are you going to focus on more when you're getting more profits from A vs G. It's all about the money money money.

43. networkdood

Posts: 6330; Member since: Mar 31, 2010

here, you said that wrong - Apple products mean consumers stuck to an over priced ecosystem - Apple consumers enjoy being a slave and do not mind skipping out on a mortgage if it means more money given to their precious company... In all honesty, it is difficult to make money making apps - not too many developers make that much from them, and in the end, all they are doing is really working for the OS creators - Google, Apple, etc...

58. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

They dont make much from them because well you are putting it best, free. But free is not really free since you are using ads. I purchase apps at times when they are good to remove ads, or go to their website to donate. There are many benefits to apple products, and i dont like apple, but when working in tech their level of support beats samsung, lg, etc hands down, for us that is.

47. darkkjedii

Posts: 31807; Member since: Feb 05, 2011

Well said bro, on point and mature. +1.

21. Muayyad

Posts: 240; Member since: Oct 05, 2012

This means Android customer pay less for more, right?

17. fanboy1974

Posts: 1345; Member since: Nov 12, 2011

I avoid Apple products because you have to go through their greedy store. This article just backed me up.

18. Ninetysix

Posts: 2967; Member since: Oct 08, 2012

Could have saved you a few words by just typing: I like to pirate.

19. timepilot84

Posts: 113; Member since: Aug 16, 2012

Or, I like to go to Amazon Store when they have things on sale, or I like to buy Humble Mobile bundle for a substantial discount, or I buy apps directly from software developers off of their web sites.

15. Scott93274

Posts: 6044; Member since: Aug 06, 2013

I remember an article stating that the guy who made Flappy Bird was making $40,000 a week just in ad revenue alone. That being said, I think it’s rather irrelevant how much is made in the App Store VS Google Play because more of Google’s apps are in fact free, thus making up their success after the download of their software and not at the point of download.

10. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

You forgot wishing him best of luck.

8. Luuthian

Posts: 332; Member since: Sep 09, 2011

If so many app downloads are games, why hasn't Apple taken the reigns and delivered a beter gaming experience? Either on the Apple TV or through an affordable controller or something.

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