The recent report published by AppAnnie states that Google (GOOG) is creating faster and higher revenue than Apple (AAPL). According to AppAnnie, Google Play app revenue reached almost 100%, while iOS app revenue raised about 20% between the third and fourth quarters, last year. One theory could be that Android can be holding the major share of new Smartphone users who have just recently started to download apps on their phones. While, iPhone buyers seem to have shifted their apps from their old device to the new ones.
The Google Story
Google is making extensive revenue growth from adverts it showcases online. It has maintained its control over the expanding market and also funds its future businesses with such successes. Google is a house-hold name from students, housewives to professionals everyone loves Goggle and its numerous services. Thus it won’t be wrong to say that it’s more in contact with its users than its rival. With Google, users get a great number of choices and the competition between the two giants pushes them to develop competitive apps for the users. Having an open business model is benefitting Google in gradually capturing its dominance in the technological world. While Apple’s closed door policies is rather cumbersome and frustrating for developers.
As indicated by the figures of YCharts, Google is maintaining a steady growth rate and seems likely to overrun Apple. The reason for this could be that Apple maintains its exclusivity in the market while Google turns to every opportunity possible to make a few dollars either from in-app purchases or adverts. Moreover, the Google platform is more inviting for developers which even let them showcase updates as and when required.
The Apple Advantage
The advantage that Apple has, is that it has repeat customers and Apple sells songs which may continue to grow in the future. Apple had always dished out fresh innovations for its users unlike its counterparts Google or Samsung. Whereas Google has a clear advantage over Apple that it doesn’t have to sell its own devices, on the other hand Apple’s devices are more finely versed with its software and hardware. Hence, Apple offers a simple, easy to follow, integrated interface for its users. Moreover, Apple has its dedicated App store for its various users on multiple devices unlike Google. For instance, Amazon tablet users cannot access the Google Play store. This leads to fragmented user markets for Google to work with. Apple’s users pay for their devices and apps as compared to Google’s users who go for free downloads.
To sum it up
With Google leading the battle in its own way and Apple is tightly guiding its upcoming innovations in the technology world, it is hard to say whether Apple will lose the battle to Google. It will be also interesting to note that Google’s major revenue comes from Asian markets, mainly Japan and Korea as they are nine out of the 10 biggest Android app revenue makers. While Apple has a strong hold on European markets maintain a stream of loyal and potential customers.