Google Play Revenue vs App Store Revenue

strategyanalystics.gifYesterday I posted on how Android now has 84.7% of the Smartphone market. However, Android users are less affluent than iOS users and tend to be less inclined to pay for apps or in-app purchases. So when might there be enough Android users to counteract Android users’ unwillingness to pay?

Strategy Analytics has new research that shows that this is as far away as 2016. This will also be driven by additional downloads due to newer connected devices such as wearables and cars. In-app purchases currently account for the majority of revenue. In app-purchases currently represent about 20% of the market and this is expected to decrease to to 16% by 2018.

Interestingly, average selling prices have increased from a low of $2.07 in 2010 to $2.69 last year. It seems as though those few apps people are willing to pay for are making the most of their position and commanding better prices.