Smartphone owners downloaded 13.4 billion apps in the first quarter of 2013, with Google slightly outpacing Apple. But Apple grabbed 74% of the revenue.
10 Great Android Apps For Tablets
(click image for larger view and for slideshow)
During the first quarter of 2013, the number of apps downloaded by smartphone owners jumped by 11% when compared to the fourth quarter of 2012. A total of 13.4 billion apps were downloaded across the four major app stores run by Apple, BlackBerry, Google and Microsoft. The revenue generated by those apps, reports Canalys, grew at a slightly slower pace of 9% when compared to the previous quarter. However, the total dollar figure generated by those app downloads amounts to a staggering $2.2 billion spent on mobile apps.
It shouldn't come as a surprise that Apple and Google own the vast bulk of those downloads, with BlackBerry and Microsoft distant competitors at best. In total download volume, Google wins with 51%. Apple is not far behind Google. Canalys didn't provide a breakdown of the exact percentages owned by BlackBerry and Microsoft.
The Apple-Google duopoly isn't a duopoly, however, when you look at the revenue. Apple controls 74% of all app revenue. That means out of the $2.2 billion generated by app downloads during the first quarter of the year, Apple raked in $1.63 billion. If you consider the 70-30 split that Apple has with developers, Apple paid its developers approximately $1 billion and kept more than $600 million for itself.
With Apple controlling such a huge portion of the app ecosystem revenue, it's no wonder that many developers still write iOS apps first and Android apps second.
Earlier this year, Apple said that iOS device owners had downloaded a cumulative total of 40 billion apps. It claims to have about 775,000 apps in the App Store. Google also claims to have about 775,000 apps in the Google Play Store. Meanwhile, Microsoft boasts of more than 135,000 apps and BlackBerry says it has more than 100,000 apps.
"Apps have had a huge impact on the way consumers use mobile devices, what they value, and what they expect from smart phones and tablets," said Adam Daum, chief analyst of analytics for Canalys. "They are now central to how consumers engage with content and connected services, and how they personalize their devices around the app-enabled features that are important to them. This is a multi-billion-dollar growth market, with more and more consumers around the world now comfortable and confident in finding apps, downloading them and making in-app purchases, on a growing addressable base of smart phones and tablets."
Emerging markets, such as South Africa, Brazil and Indonesia, posted the biggest growth numbers, as smartphones are still gaining strength in those regions. North America and Europe are seen as mature markets, but still posted moderate growth. North America, for example, saw revenue and download volumes increase by 8% and 6%, respectively.
What remains to be seen is whether BlackBerry or Microsoft can break down the Apple-Google duopoly with their respective platforms and app stores. Both have a long, long way to go.
Mobile technology is changing the way we live, work and play. Attend Mobile Commerce World , June 24-26 in San Francisco, to learn how to develop and deploy your company’s mobile commerce strategy. Spend three days learning from key players at Walmart, Amazon, Zappos, 1-800-FLOWERS, Advance Auto Parts, Alex and Ani, Groupon, REI, Vegas.com and more who are harnessing the power of mobile commerce. Register with code MP_BTMEDIWKAXE and save $200 on an All Access pass.
InformationWeek Elite 100Our data shows these innovators using digital technology in two key areas: providing better products and cutting costs. Almost half of them expect to introduce a new IT-led product this year, and 46% are using technology to make business processes more efficient.
The UC Infrastructure TrapWorries about subpar networks tanking unified communications programs could be valid: Thirty-one percent of respondents have rolled capabilities out to less than 10% of users vs. 21% delivering UC to 76% or more. Is low uptake a result of strained infrastructures delivering poor performance?
Top IT Trends to Watch in Financial ServicesIT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Join us for a roundup of the top stories on InformationWeek.com for the week of September 18, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."