Apple App Store Makes 80 Percent More Money Than Google Play Store


Despite seeing a huge growth in app downloads, the Google Play Store continues to lag far, far behind the Apple App Store in terms of revenue generated from apps.

The latest report by mobile analytics firm App Annie reveals the App Store's revenue is a whopping 80 percent more than what Google earned from the Play Store in the third quarter of 2015, signifying a huge increase in disparity over Apple's 70 percent lead in the second quarter.

Google, however, is following growth down a different path. While the App Store makes money, the Play Store is seeing more downloads. According to App Annie, Google saw 90 percent more downloads for Android apps over iOS apps in the quarter from July to September, up from the 85 percent lead during the previous three months.

The differences in growth can be attributed to where Apple and Google are taking their products. Apple, which is slowly but surely establishing a stronghold in the Chinese market, sees its revenue growth from the popularity of iPhone 6 and iPhone 6 Plus in the country.

Thanks to Apple's adoption of large-screen smartphones, a product the company previously scorned, Chinese customers have quickly picked up the new iPhones, some even resorting to incredible measures to buy a new phone.

App Store revenue is mostly generated by games, such as Tencent's The Legend of Mir 2 and The King of Fighters' 98 Ultimate Match and NetEase' Fantasy Westward Journey. Other revenue generators include social video apps iCast Show and MiaoPai and Uber competitor Didi Dache.

Google, meanwhile, retains a strong presence in emerging markets such as India, Indonesia, Vietnam and Brazil, where smartphone users are not likely to buy premium apps or make a lot of in-app purchases. India, in particular, is a bright spot for Google, as it is the third-largest market for Android app downloads, only next to the U.S. and Brazil, while also being the third largest smartphone market.

"It is equally important to note that smartphone penetration in the country remains at 10 to 15 percent range with tremendous room for growth," adds App Annie.

The rise of popular social networking and messaging apps, particularly Facebook and WhatsApp, helped drove the growth of downloads in India. Security apps such as 360 Mobile Security and file sharing utilities such as SHAREit are also popular.

However, revenue generation for the Play Store is limited to smaller, more developed countries led by Japan, followed by the U.S., South Korea, Taiwan and Germany.

Photo: Brian Snelson | Flickr

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