Apple, Google, and thousands of mobile app developers have been active in the mobile app industry for more than a decade now, generating trillions of dollars.
While Apple or Google did not originally perceive the first iOS and Android releases as necessary, it became a major revenue stream for both.
In addition, iOS led the way to revenue generation for app developers with less than 15 percent market share. Partly because iPhones are more popular in high-income regions like Japan and the US, which also spend more on apps.
In comparison, India, South-East Asia, and South America are the largest markets in Google Play and generate typically less per user sales. Also in China, Apple is operating, while the Google Play shop is prohibited. Many Android app store third-party stores are available in China, with an estimated annual revenue of over $8 billion.
In the last few years, both platforms matured and developers have been able to expand their revenue generation. These comprise a platform for multiple purposes, in-app shopping systems, and subscription services all covered in this market analysis of the app.
Key Statistics of App Revenue
Revenues from Android and iOS apps increased by 24 percent year on year to $111 billion in 2020. In 2020, iOS accounted for 65% of total app revenue.
In 2020, games accounted for 71% of the app sales total. In 2020 iOS generated revenue of $47.6bn, while Google Play generated $31.9bn
Apart from games, iOS accounted for 76% of the $32.1 trillion in 2020. Google Play's non-gaming revenue generated $6.7 billion in 2020 to iOS' $24.7 billion.
The revenue from subscriptions increased to 13 billion dollars in 2020; iOS accounted for 79% of revenue.
TikTok and PUBG was Mobile's biggest grossing application in 2020.
Yearly App Revenue Data
In the two main app stores, iOS and Android, app revenue includes all revenue generation. These include advertising, in-app shopping, subscriptions, and app shopping.
In 2016-2019, revenues have steadily increased, but in the last three quarters, remarkable growth has resulted in global locks and more spent indoors.
Android's revenue has increased by 167 percent over the last four years, mostly as the developing countries (which are most popular in Android) have started to increase their average per-user revenue.
We can expect the gap between the two platforms to continue as Google continues to add additional features for developers to earn a profit.
Yearly Gaming App Revenue Data
Games continue to represent both iOS and Android's primary revenue generation, accounting for 72.3% of all turnover during the third quarter of 2020.
Comprising adverts, headless experiences, in-game cosmetic products, pro versions, and gifts, games have far more avenues to revenue generation compared to apps. Some games have worn by consoles and PCs also cost more than $10.
Yearly iOS Gaming App Revenue Data
Once again, Apple's App Store is leading the way in revenue generation.
Appodeal asked mobile developers in a date YouTube video which app store monetizes more effectively. Almost all said that iOS was the better revenue platform, and that is still the case.
Yearly Google Play Gaming App Revenue Data
Although the user base is bigger, Android could not replicate iOS' revenue generation, partly because Android is popular and has an average user income.
Android has generated about 60-70 percent of iOS revenue for the past two years, and Google does not seem to have been capturing Apple.
Non-Gaming App Revenues Data
Over the past two years, non-gaming revenues have climbed but face an important decrease after Netflix, Spotify and others stopped offering iOS and Android subscriptions. This is because Apple and Google both collect 30 percent tax from any subscription on mobile platforms.
Revenue has peaked in the last two quarters in the second quarter of 2019. We'll have to see if that goes on after the pandemic.
Yearly Non-Gaming iOS App Revenue Data
The major customer base in the United States is the majority of non-gaming sectors that operate primarily on subscriptions. Tinder, Hulu, Pandora, Calm and Strava are all based in the United States with over 50% of their client base.
As iOS has a 50% market share in Android in the USA and dominates higher income groups, it is likely that the majority of non-spiel generating revenues will come from Apple's platform.
Yearly Non-Gaming Google Play App Revenue Data
Android has still not done this, Apple stepped over a mark of 2 billion dollars in Q3 2017.
Google has the challenge of attracting customers who may never have subscribed via mobile, much more difficult than iOS, its main US client base, to subscribe and offer other services.
Subscription App Revenue Data
Despite several setbacks from major applications like Netflix, Spotify, and Epic Games, subscription revenue has continued to rise year by year, eliminating both platforms from subscription services.
Apple again leads the revenue generation, though the effect that Netflix and Spotify had on the growth of 2019 by the end of 2018 on the removal of subscription services was apparent.
Apple saw a 63% growth in subscription sales from 2017 to 2018. This decreased to 16% growth between 2018 and 2019.
Yearly Google Play App Revenue Data
As Android's sales are much lower than iOS, the percentage growth from 2018-2019 was not as distressing.
Google has added more subscription services tools, which have increased revenues by more than 1 billion dollars.
In simple terms, mobile app revenue has increased by 3X in the last five years. This means there is a lot of potential for mobile app based companies.
And those companies that are not using mobile apps to promote their businesses are missing out on this new avenue stream.
That is why it is so important for businesses to scale and grow with the help of mobile technologies.
We at Distinguished.io, b2b ratings and reviews platform, are providing lists of top mobile app development companies that you can use to grow and scale your business.
These top app developers will not only help you grow and scale but also profit from new customers that will be coming through your mobile apps.
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