Google Leads App Downloads, Apple Cashes In - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

10:23 AM

Google Leads App Downloads, Apple Cashes In

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
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.

[ Can the One save HTC's bacon? Read For HTC, The One Can't Come Soon Enough. ]

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, and more who are harnessing the power of mobile commerce. Register with code MP_BTMEDIWKAXE and save $200 on an All Access pass.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
10 Things Your Artificial Intelligence Initiative Needs to Succeed
Lisa Morgan, Freelance Writer,  4/20/2021
Tech Spending Climbs as Digital Business Initiatives Grow
Jessica Davis, Senior Editor, Enterprise Apps,  4/22/2021
Optimizing the CIO and CFO Relationship
Mary E. Shacklett, Mary E. Shacklett,  4/13/2021
White Papers
Register for InformationWeek Newsletters
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Flash Poll