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Despite Impressive Growth, Google Play Store Only Generates Half as Much Revenue as the App Store

When it comes to app distribution platforms, there is very little doubt that two of largest ones are the iOS and Android ecosystems. This can be attributed to the sheer number of apps that these two platforms host. As of this moment, both the iOS App Store and Google Play Store are each homes to a staggering 800,000+ apps. Over the years, Google's platform did an impressive feat of catching up to Apple's in terms of number of apps and downloads. However, it's a different tale when it comes to revenue.

Google Play Store VS iOS App Store

App analytics company App Annie has conducted their quarterly Market Index where they review the most recent download and revenue trends according to stores, countries and categories. The findings were rather interesting. The Play Store was able to achieve an impressive percentage of growth rate with respect to app population and downloads. In fact as of Q1 2013, the Play Store downloads were able to achieve about 90% of iOS App Store downloads.

the iOS App Store and Google Play both had solid gains in app downloads last quarter, Google Play had a higher percentage growth rate as well as a greater gain in absolute downloads. As of Q1 2013, Google Play’s app downloads were close to 90% of iOS App Store downloads.

While the Google Play has almost caught up with Apple with regards to app population and downloads, the former is still trailing behind the latter when it comes to revenues. Just how much more does the App Store is making compared to the Play Store? According to the findings, the App Store is earning more than twice as much.

From Q4 2012 to Q1 2013, iOS App Store quarterly revenue grew by roughly one-quarter. Meanwhile, Google Play app revenue grew by roughly 90%. While Google Play had the higher growth rate, the iOS App Store gained more in absolute revenue and earned about 2.6x that of Google Play in Q1.

App Annie Market Index

This huge gap in revenues is attributed to the lack of willingness of Android users to pay for apps. This has been pointed out again and again. However, this doesn't mean that the Play Store isn't experiencing revenue growth. It does, it's just that App Store is simply more of a revenue powerhouse.

Over the years, many iOS developers just doesn't find it attractive to develop for Android due to the lack of revenues. However, it seems that the trend is changing. Will we see more developers making high quality apps for Android? [via iPhoneHacks]

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