Report: Battle for App Revenue Swinging in Favor of Android

Sept. 3, 2013

Revenue from mobile apps on the Android platform are expected to nearly double by the end of this year, according to a new report from market research firm ABI Research. The report projected sales of Android smartphone mobile apps will reach $6.8 billion in 2013. The researchers found Android’s use of targeted online advertising through Google has enabled it to cut into Apple’s big lead in app revenue.

“Apple’s iOS still leads all the other mobile operating systems’ revenues by a significant margin; however, the greater number of Android smartphones in use is clawing back Apple’s lead in this market,” says senior analyst Josh Flood. “This year, Android smartphones will ship by a factor of more than three-to-one to iPhones.”

The report also notes that Android’s willingness to leverage the higher conversion rates of direct-carrier billing could prove to be “decisive” against iOS’s in-house payments.