Assessing App Store Revenue

benedictevans.pngBenedict Evans has an insightful post comparing Google and Apple app store revenue. Only very recently have Google publicly stated Play Store revenue, I guess because only recently has it become large enough to compare to Apple App Store. The main conclusion is that while Google has about double the number of devices, it pays out about half that paid out by Apple.

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Benedict explains that app store revenue isn’t an ideal way to compare the platforms/stores because the majority of the revenue is for games. I suspect things might look different if games were excluded. Also, the numbers don’t include revenue on other 3rd party app stores such as Amazon. Benedict also asks what will happen in the near future when the Android user base will double but Apple’s won’t.

Whatever the outcome, the key thing for me is that app store revenue is mostly irrelevant. I have observed that none of my clients over the last two years have sold apps – not even via in app purchases (IAP). Maybe this reflects the fact that the majority of app store revenue is for games. Instead, my clients have been more interested in using mobile as a tool for getting important things done. Those ‘things’ have either been a small yet important part of their business or in a few cases have used a specific kind of device, for one purpose, to create a new business. They are not selling apps, they are selling products based on apps.