In spite of the fact that Apple (NASDAQ:AAPL) has the minority mobile share, it is by far the “king of mobile applications” – according to recent statistics, the Apple App stores have recorded sales of more than $10 billion in 2013, with Apple self taking a 30% cut and 70% going to the app developers. This is perfectly understandable since the number of sold iPhones and iPads has been on the rise over the past couple of years.
The more Apple products are sold, the more apps are requested. According to a press release that was recently made available to the public, iPhone and iPad users have downloaded no less than three billion applications, and one billion dollars was spend on apps only in December 2013. That surely places this app store on the first place, way ahead of its competitors.
However, it must be said that the revenue generated by the Apple App Store represents only a tenth of the total revenue generated by the Apple last year, which sums up no less than $90 billion, thus making Apple one of the fastest growing businesses in the world.
As it was expected, most of the downloads consisted of game applications, the Candy Crush Saga being by far the most popular one. At the moment, the most feared competitor of the Apple App Store is the well-known Google Play store, which has a revenue share split of approximately 65%. Apple has gathered most of its app-related revenue by putting a price not only on the application purchases, but also on the downloads, as there is always the pay per download feature available. Also, this is a very well-thought strategy coming from Apple: with every application sold through the Apple App Store, the buyer is closely connected to the App platform, which means that it is very likely for him to come back and purchase some more applications. So far, this strategy has turned out to be more than effective for the Apple giant!
As some specialists claim, the reason why the Apple App Store is making more money than the Android App Store is that the first one relies heavily on selling the mobile phone applications, unlike Android, which tends to put more emphasis on features like suggestions, mapping or search, and to get part of its revenue from advertising services rather than from application sales. One thing is for sure, however: Apple does not seem to mind that it does not hold the majority of the market share, given the fact that its mobile strategy is so financially rewarding at the moment!
To sum it all up, even though the Apple operating system does not have as much market share as Google, it surely generates a lot more revenue and that is very clear to everybody. The reason why this is so is because Android phones are used mainly for texting and calling, unlike the popular iPhones that are taken to the next level by Apple users who make the best out of the available features. Statistically speaking, more than a quarter of the total online traffic recorded during the famous Black Friday sales were via iOS, while the Android users were accounted for only little over 10% of the online traffic.