Apps on both Android and iOS have taken a more “freemium” model in recent years, giving users the option to use an application or play a game and then pay extra for certain features or in-game items. This has led to a boom in app revenue for app developers, with microtransactions becoming ever more popular in some of the most popular games. Apple recently new disclosure requirements on applications with in-game loot boxes due to the increasing trend. It is thus unsurprising to hear that overall app revenue has only increased in recent years according to a new report from SensorTower, growing by 35 percent year-on-year to $60 billion in 2017.
Firstly, that shows that mobile app freemium models are just not going anywhere. With the industry booming, it is seemingly the most profitable form of monetizing apps for many app developers. With 82% of all app revenue being from games, it’s really not too surprising. What is surprising is that Apple’s App Store has a much higher profitability than Android’s Google Play Store, much higher than some may have thought. It’s been a generally accepted fact that having your app on the App Store will pay off more than the Google Play Store, but the report found that it pays off about twice as much—Apple touting a figure of $38.5 billion versus Google’s $20.1 billion.
Google saw a much higher first-time download rate of applications on the Google Play Store than on Apple’s App Store.
What’s interesting to note, secondly, is that the amount of first-time application installs on the Google Play Store far outweighs the number of installs on Apple devices, which can mainly be placed on the appeal of Android devices in developing nations. With the continuation of the Android One program along with cheap but good devices, users in developing nations will be more attracted to Android while also being more careful of the amount of money they spend on the Google Play Store.
Source: SensorTower
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