Friday, 22 January 2016

Apple App Store Generates Significantly More Revenue Than Google Play Store

Apple App Store

Apple App Store boasts of stronger revenues in comparison to Google Play Store.


Alphabet’s Google Play Store had an amazing start where they observed 100% growth in contrast to Apple Inc.’s App Store as reported by VentureBeat. App Annie, which is an app analytics company, came up with their retrospective report for the fiscal year of 2015, where it was deduced that the company observed 60% growth in FY14.

Google recently launched the new smartphone series, Nexus 5X and 6P, which have resulted in growth for the app store. Moreover, it is also speculated that the Android operating system 6.9 Marshmallow might just be the catalyst for the change. The company has refined the operating system and is now simplified that might attract masses.  

However, one thing that was not part of the report was the revenues. Ironically, despite the growth of Google’s Play Store, the Apple iPhone maker has succeeded in getting 75% more revenue in comparison to Google.

Google App Store and Apple App Store now have a substantial gap. All those developers that are working for Apple tend to get more money in comparison to their counterparts. The brand has now become a status symbol among customers.

Undoubtedly, Google’s operating system is presently the most commonly used operating system in the fraternity. This has resulted in several inconsistencies due to the segmentation in the market but the Play Store has a massive consumer base. Other than that, all the users who buy an iPhone have the advantage to opt for in app purchases or paid apps.

Another factor that was highlighted in the report was that the majority of the growth in terms of the app store was observed from outside the United States. Countries that contributed significantly to the growth were Indonesia, Brazil, Turkey, India and Mexico. On the contrary, the Apple App Store observed its growth from countries like United States, Japan and China.

Apart from this, Android is likely to embrace growth this annum too. However, this growth will not act as a major revenue source and AAPL will remain the uncrowned king of the fraternity. The company is paying a lot more to the developers in contrast to Google since they are not making that much money overall.

Another factor taken into consideration is that the purchasing power of Apple buyers that is stronger than Google. Thus, revenues boost due to the purchasing power of the users who can spare out money for purchases on the App Store. 

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