App Annie: Google Play gets downloads, but Apple App Store generates the revenue

Google (NASDAQ:GOOG) Play may have dethroned Apple's (NASDAQ:AAPL) App Store in terms of downloads, but developers focused on monetization may want to stick with iOS, based on the App Annie Market Index Q2 2013. Released last week, the report examines downloads and revenues across stores, countries and app categories.

  • Though Google Play had more downloads, the iOS App Store still generated 2.3 times the revenue
  • Games accounted for 80 percent of revenue for Google Play and 75 percent of revenue for Apple's App Store
  • 40 percent of all Apple App Store downloads came from the United States or China
  • The combined downloads for the United States, South Korea and emerging markets comprised over one-third of the total Google Play downloads
  • 40 percent of downloads in both Apple's App Store and Google Play were gaming apps

The App Annie Market Index Q2 2013 showed the iOS App Store has a revenue lead over Google Play.

"Android's open platform has given Google Play a very strong position in (emerging) markets because cell phone manufacturers like Samsung, Nokia, HTC and LG are offering cheaper handsets and already have established distribution channels to market and sell their products," the report said.

Put aside the war between Apple and Google for a moment: This is really about the power of key app categories and how developers could generate more money from them. For example, App Annie noted that while gaming continues to reign supreme, secondary categories like social networking saw impressive growth in Q2, surging past productivity apps in terms of revenue on iOS. That revenue bump was not accompanied by a corresponding rise in downloads, however. That means smart developers are probably using a mix of in-app advertising, in-app purchasing and perhaps even testing out paid downloads as a means of increasing their share of consumers' wallets among their established base of users. Not a bad model to follow, whether you're targeting iOS or Google Play.

To read the full App Annie Market Index report, click here.

Related articles:
Google's Android Jelly Bean surpasses 40% adoption
71% of developers pick Android as their top platform
Flurry: 90% of iOS apps in use are free downloads