Google Play Revenue Up 311% From Last Year But Still Far Behind iOS

According to App Annie, an app analytics company, Google Play’s revenue went up 311% from October 2011 to October 2012, while iOS’s revenues only grew 12.9%. However despite Google Play’s massive revenue growth and it closing in on iOS quickly, iOS’s revenue for the year is still 4 times that of Google Play. Google Play is catching up quick though with its revenues growing 20 times as fast. Just last month, Google Play’s revenue increased 17.9% while iOS’s revenue dropped by 0.7%.

Bertrand Schmitt, CEO of App Annie, said,

“The gap between global revenues on iOS and Google Play is still there. But the gap is shrinking every month, creating more opportunities for publishers to generate significant revenue growth in several countries on Google Play.”

This is very significant because a huge deterrent for major developers from the Google Play store was that developers didn’t believe Google Play was very profitable. That’s why many opted to develop for iOS instead. With Google Play closing in on the revenue gap with iOS, we may see more top-tiered developers working on apps for Android.

Another important thing to consider is that free downloads in Google Play have gone up 48% as well, compared to only 3.3% in iOS.

App Annie also released a list of top developers for both iOS and Android.:

  • iOS: Electronic Arts, Supercell, Zynga, Gameloft, Apple, Applibot, SQUARE ENIX, GungHo Online Entertainment, Kabam and Gree
  • Android:  DeNA Co., COLOPL, GungHoOnlineEntertainment , WeMade Entertainment, LTD, Zynga, GAMEVIL, Gree, NAVER, Gameloft and NextFloor
Some of these developers only have 1 or 2 highly popular apps, while others have around 50+ in their portfolio. Schmitt said,
“We can also see from the data that app publishers have two options when it comes to becoming a global app store success -– distributing a large quantity of apps, or marketing one or two high-quality apps. Both business models are working – from large publishers including EA and Zynga, which have been able to scale, to smaller publishers such as Supercell, which had runaway success last month with Clash of Clans.”
 

According to the graph above, Japan beat the United States in Google Play revenue in October 2012 making it the first month where the United States didn’t come out on top. However, in iOS, United States came out superior to Japan. What is significant about these charts however is the high adoption of Android in Asian markets. Schmitt stated,

“What has become clear from App Annie’s first Index is that while iOS took home more of the global revenue pie in October, the rising adoption of Google Play in Asian markets, including South Korea and Japan, is already driving major revenue growth opportunities on the platform”

What’s also important about the Asian market is that 7 out of the 10 top publishers for the Google Play store were from Japan and South Korea, where most of their games are overwhelmingly popular. Also Android is gaining popularity in Indonesia, which has a population of 242 million people.

So if Google can continue to entice the Asian market, it will be able to catch up and surpass iOS’s revenue gains.

It also really helps that there are so many Android devices available out there.The IDC reported earlier this month that 3 out of every 4 handsets shipped globally were Android handsets. This brought Android’s year-to-year growth from 2011-2012 up 91.5% compared to iOS’s 57%.

It’s exciting to see Google Play doing so well and catching up with iOS. Maybe we’ll start seeing some more high-end developers for Android soon. I know that I, for one, would love to see Square Enix release more titles for Android.

Source: Mashable, Pando Daily, and Tech Crunch via App Annie

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