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iOS App Revenue Still Totally Rules

1 July 2014 484 views No Comment

Rich, educated folk trend to Apple and a scrappier crowd in lower income places prefer Android. That paradigm is doubly true for iOS app revenue.

When you think about the iPhone, Android and their related app ecosystems a few truisms come to mind — rich, educated folk trend to Apple and a scrappier crowd in lower income places prefer Android. That basic paradigm extends to apps and app revenue.

Ben Evans, one of my favorite smart guys, watched the happenings at last week’s Google IO conference and jotted down his musings Android vs iOS app revenues that go roughly like this

There are roughly twice as many Android devices in use today. However, iPhone users generate twice as much app revenue for developers.

Fundamentally, Android users are, frankly, a bit threadbare while iPhone owners have and like spending money. This, according Evans, leads to self-reinforcing group think for developers:

Finally, this can become circular: if developers believe that Android users do not pay, then their behavior will be affected – they may offer a free ad-supported app instead of a paid app, or have a lower price. And, if they decide not to support Android or support it second, then their users will gravitate to iPhone first, which becomes self-fulfilling. You can see this clearly on Android tablets – magazine apps have low use on Android so are slow to support Android, so users who want magazine apps don’t buy Android tablets.

Over the last year, Google paid devs $5 billion, which is more than double the previous 12 months $2 billion. Meanwhile Apple paid out $7 billion in calendar 2013 and, based on trends, likely paid out at least $10 over the last 12 months.

That really puts fandroid bluster and blow into perspective. Money talks, bull cookies walk…

What’s your take?

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