Apple Inc. (AAPL) Lags Android In App Revenue For First Time In 2017: App Annie

Apple Inc. (NASDAQ:AAPL) may take the second position as Android is all geared up to lead the app revenue segment generated by mobile apps for the first time this year, as per the report from App Annie. The revenue estimates, however, takes into account the third-party Android app stores and not just Google Play. The Cupertino-based firm, however, claims the top spot when the revenue from Google Play alone is considered, the report notes.

App download race between iOS and Android

App Annie report suggested that the global mobile app downloads will cross 352bn in 2021 with gross consumer spending crossing $139bn. The report also stated that major chunk of this spend will be from iOS App Store, which is expected to generate over $60bn in 2021. On the other hand, Google Play will generate $42bn, and remaining $36bn will be from third-party apps.

Danielle Levitas – senior vice president of research for App Annie – stated that Android will outperform Apple as there are more Android devices than the iOS devices by about a 5-to-1 ratio worldwide. “So there’s much room for movement and while this shift might happen in 2017, ultimately, we forecast the App Store remaining the most lucrative store in the next five years,” Levitas said.

Apple Inc. (NASDAQ:AAPL), however, earns higher revenue per user and per app download as per the report. App Annie stated that in 2016, users downloaded 29bn apps from the App Store compared to 118bn total from Android app download. Also, the spread could increase this year with the report forecasting 30bn downloads from the App Store and 165bn combined Android app downloads. By 2021, the iPhone firm will have 42bn app download whereas Android will have 308bn combined.

The top five countries in terms of download are China, India, United States, Brazil and Indonesia contributing a total 54% of the downloads last year. This would continue much through 2021. However, from the revenue point of view, top five are China, U.S., Japan, South Korea, and the U.K. in 2016.

Apple making changes to App Store

Tim Cook-led firm seems to be making few changes in its App Store, restricting developers from displaying the price of their apps in the app names and screenshots. Apple’s iTunes service is already blocking the submission to the App Store or Mac App Store if the app metadata has the pricing information.


This could change the way how free apps have been working until now. Developers have been mentioning the free status of the app from years now. Even though Apple Inc. (NASDAQ:AAPL), in its developer guide for the iTunes Connect and its overview of App Store product pages, did asked the app developers not to show the price, it never restricted them to do so. However, now the developers will see the error message once they mention “free” in the name of the app.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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