Google Play Downloads Passed App Store Downloads For the First Time in Q2

[Tinmania]

I had a few apps on Google Play last year and what an awful experience. Because they have a 100% refund policy for the first 2 hours after you buy an App (it might have changed but used to be a full 24 hours) I had 70% of my sales refunded to people, they would buy my app, watch the videos and look at the photos and then return it for a full refund. Ugh!

I know if it was the App Store those poor suckers would be stuck with the app they don't want. Yay.



Michael

 

[Michael Scrip]

The very fact that more and more people start using other smartphones isn't only about money, many prefer an other smartphone above that of Apple.

Money can have a lot to do with it, though.

Worldwide... if you're looking for an unsubsidized smartphone at $450 and above... you can choose either iPhones or Android phones.

But below $450... your only choice is Android.

And believe me... there are a ton of cheap Android phones far below $450

I know we spend a lot of time on these forums talking about flagships like the Galaxy S4, Galaxy Note and HTC One... but Android is mostly cheaper budget phones that you've never heard of around the world.

Hell... the other night I found some Android phones in India that sell for $90

Now you tell me... is the person buying that $90 phone because of its operating system?

No... it's purely a money decision.

 

[AppleScruff1]

I would rather Apple not make a cheap iPhone and focus on margins on all of their products, even the low-cost ones.

Out of curiosity, why?

 

[GoldenJoe]

I'm very curious as to how the income breaks down. Call me cynical, but I just can't believe that Android is even in the same universe as Apple when it comes to customers buying apps or IAP. Is the Google Play revenue all ads from apps? Non-app services? How much of it went to developers?

 

[Dmunjal]

Out of curiosity, why?

I think Apple (and Sculley) made a mistake in the 90s trying to compete against Windows on Microsoft's turf. Apple couldn't compete against all the other PC manufacturers (HP, Dell, Compaq, etc) and especially the cheap Taiwanese PC knock-offs on price alone.

Apple is and always will be a high-end, high-margin product because of the money they spend on design, software, and general R&D. Those other guys didn't need to spend money on that and can price their products lower. When Apple tries to play that game, it's a race to the bottom and Apple doesn't have the economies of scale that those companies do.

Samsung can price their phones so much cheaper than Apple because they don't have to spend much on software R&D (just TouchWiz, not Android) just like HP, Dell, and Compaq didn't have to spend money on Windows.

If Apple focuses on margin and profit, they would not grow as fast but be wildly profitable. Right now, Apple makes more profit than all the other manufacturers (PC and mobile) combined.

Yes, they would lose market share and not have the same growth (and the stock would come down) but would still very relevant and wouldn't risk overextending themselves like they did before.

But this time, Jobs is not around to save the company and simplify their product line again.

 

[pearvsapple]

Way less profit on Android. Them filthy pirates.

 

[WMD]

I'm using it.

Ah, so you are talking about your own experiences...but your original post said

android is becoming more and more intriguing for ios users to jump ship.

as if you were talking about the market as a whole. It's very tempting to project your own thoughts about a product onto the market, but it's not always accurate. Case in point, at first I thought the MacBook Air was a stupid idea, doomed to fail...and now, there's a whole new category to describe its competitors (ultrabook), which it continues to outsell.

 

[Dontazemebro]

I'm very curious as to how the income breaks down. Call me cynical, but I just can't believe that Android is even in the same universe as Apple when it comes to customers buying apps or IAP. Is the Google Play revenue all ads from apps? Non-app services? How much of it went to developers?

Actually I believe ad revenue was not included in this in which case I think it should since quite a few of the paid apps on iOS can be had for free on android due to the revenue it generates thru ads.

 

[GoldenJoe]

Actually I believe ad revenue was not included in this in which case I think it should since quite a few of the paid apps on iOS can be had for free on android due to the revenue it generates thru ads.

You believe it, or you read it?

 

[Mums]

I do love being able to browse apps on the desktop browser, and click install and choose a device for it to go to. Also being able to buy and play music/movies/tv shows/books/magazines through the browser too is brilliant.

Apple needs to get their online act together I think. iCloud.com is a joke.

I'll have to agree that iCloud is not up to par. It took me over a year to sort out the password mess iCloud created for me which Apple barely knew how to fix, and now iMatch (or whatever it's called) has rendered my iTunes unusable.

 

[ThunderSkunk]

Everyone I know that started out with an android phone that switched to an iPhone imediately complained that "the Apps for iOS cost money, instead of being free like on Android."

I wondered if iOS App purchases were subsidizing the Android versions of those same Apps.

 

[Dontazemebro]

You believe it, or you read it?

from original post

Revenue estimates include paid downloads and in-app purchases, but not in-app advertising.

Article Link: Google Play Downloads Passed App Store Downloads For the First Time in Q2

 

[cdmoore74]

You guys are something else. Half you guys can't believe it, another portion want to throw numbers and charts around and the rest of you iFans are fighting amongst yourselves. Total chaos!!! You just don't see this mess on Android sites.

 

[vvswarup]

Not surprising. There has been a huge exodus to android over the last few years. An increasing user-base attracts more devs, thus more apps.

Talking heads have been predicting a decline in developer interest for iOS for years now. They started out with the "open vs. closed" line, claiming that devs would rather develop for a platform that doesn't come with all those silly restrictions that Apple places on its app store. When it became evident that Android's openness wasn't causing a mass exodus, they claimed that increasing market share would attract developers because, like Mac vs. Windows, higher market share means higher user base.

It turns out that at the end of the day, market share and openness are the means to the end-making money to put food on the table. Developers have made far more money from iOS than they have made from Android. The money-making potential of iOS is what feeds developer interest.

 

[Klae17]

There is no huge exodus. The vast majority of new Android users are people who are upgrading from feature phones, and are talked into buying Android by a phone store employee.

It's a tiny fraction of iPhone users who leave the ecosystem to go to Android. Very tiny.

Exactly. iPhone retention is very high because of the ecosystem! Some people really think that Apple users are switching by the droves.

 

[appleisking]

There is no huge exodus. The vast majority of new Android users are people who are upgrading from feature phones, and are talked into buying Android by a phone store employee.

It's a tiny fraction of iPhone users who leave the ecosystem to go to Android. Very tiny.

Maybe people misunderstood my post. I'm not claiming tons of people are leaving just ios. But my opinion is there's a huge exodus to android from all corners of the market and from feature phones. They have the largest attraction. The point really still stands. Bigger userbase=more devs. I'm actually surprised tho not that I think about it, wouldn't devs rather stick around to where they would make more money in ios.

 

[a0me]

I do love being able to browse apps on the desktop browser, and click install and choose a device for it to go to. Also being able to buy and play music/movies/tv shows/books/magazines through the browser too is brilliant.

Apple needs to get their online act together I think. iCloud.com is a joke.

It really goes to show that, with the notable exceptions of iTunes and apple.com, Apple really sucks at Internet (services).

 

[crackbookpro]

What subsidizing? You know that must of those "emerging and international" markets have no contract smartphones, don't you?

You know that the biggest market where there are a high subsidy is USA, don't you?

I can't disagree with you entirely - in the current trend, a lot of the international market is moving away from the subsidizing culture as some of our US tele co's are doing the same these recent days. The subsidizing culture market has calmed down as oppose to what it was... and it was strong well across Europe for the past 4-5yrs.

But, to reclaim my point, it is what helped & gave/gives momentum now for Android(software) & Samsung(hardware) in the mobile arena.

 

[mrsir2009]

Does this mean google have more free apps ?

Yeah, the Play store seems to have a larger proportion of free apps than the App store. In some cases developers even charge for an app on iOS and then offer the same app for free on Android (ad supported of course). Probably because of the higher rates of piracy on Android and the fact that it's harder to get credit on a Google account in order to buy stuff (no vouchers in most places). Not to mention the fact that many Androids are sub $300 cheapies, and people who buy a Samsung Galaxy Y are less likely to pay for an app than people who buy an iPhone.

 

[crackbookpro]

Yeah, the Play store seems to have a larger proportion of free apps than the App store. In some cases developers even charge for an app on iOS and then offer the same app for free on Android (ad supported of course). Probably because of the higher rates of piracy on Android and the fact that it's harder to get credit on a Google account in order to buy stuff (no vouchers in most places). Not to mention the fact that many Androids are sub $300 cheapies, and people who buy a Samsung Galaxy Y are less likely to pay for an app than people who buy an iPhone.

100%... Google is all about cheap adoption in the cheapest platform. Always was, always will be. Still have great software, but this data can be looked at or broken down in many ways.

I like your way though, I believe you are spot on.

 

[Oletros]

I can't disagree with you entirely - in the current trend, a lot of the international market is moving away from the subsidizing culture as some of our US tele co's are doing the same these recent days. The subsidizing culture market has calmed down as oppose to what it was... and it was strong well across Europe for the past 4-5yrs.

But, to reclaim my point, it is what helped & gave/gives momentum now for Android(software) & Samsung(hardware) in the mobile arena.

No, the contrary, great subsidies means that more expensive smartphones are sold.

 

[mrsir2009]

The vast majority of new Android users are people who are upgrading from feature phones, and are talked into buying Android by a phone store employee.

Yeah, Android is pretty much replacing feature phones these days, and wether people like it or not, they're going to get an Android when they walk into the store and ask for a $100 cellphone. When I go on the Telecom website ALL of the phones are Android/iOS, with only one or two feature phones still holding out. That's waaay different than 3-4 years ago, when you got a feature phone unless you wanted a thousand-dollar smartphone.

 

[tdream]

Correct me if I'm wrong, but the number of downloads is not a good reflection of an overall success of the store?

I am not surprised that Android passed Apple, it has like a million of cheap phones that are cheap and given out for free with even two year contract where as Apple only has iPhone. So, ofcourse it would surpass, I'm surprised it took so long.

On the other note, the second chart is much more indicative of overall success of the App Store.

Based on results of those two charts:

1. Android has more users but they are cheap and download only free apps.
2. Apple has fewer customers but they are not poor and spend quite a bit more on paid apps.

And yet every conference Apple hold, they spew out the numbers like no tomorrow. Apple obviously doesn't agree with your sentiment.

The second part of your post rings true, but it's only a matter of time before Android catch up.

For years Apple has been way ahead in useability, innovation and execution, but they've slowed down tremendously and haven't been able to innovate anything other than a paint job with the latest iOS so it's obvious the competition will catch up if you're not striding forward.People see through cosmetic changes.

There are a lot of people who buy cheap android phones but guess what that's exactly the market Apple are going after, is that a little ironic for you? And you obviously know there are tonnes of top quality Android phones to choose from Samsung S3/S4/S4 Active, Note 2, HTC One, Nexus, Sony Xperia Z and more on the way. Apple has used the same design that Jobs greenlit from Ive since the iPhone 4. If anything I'd say Apple is too scared to 'innovate' away from a winning formula.

In any case it's only a matter of time until Android are on top with the majority of statistics. Though I do agree with you for now that Apple apps do exude that little bit extra quality due to tighter controls, software and hardware made by the same manufacturer and Google payments are a mess IMO.

 

[crackbookpro]

No, the contrary, great subsidies means that more expensive smartphones are sold.

Subsidizing the smartphone has been a market of a 2nd Tier high end smartphone at best. The most expensive/newest smartphones are not subsidized...

More 2nd Tier smartphones are sold because they are at the price point of where the tele's & the manufacturing pipeline of a hardware co have made a legit contract to sell sell sell, and make people adopt to their low price point subsidized culture.

 

[Oletros]

Subsidizing the smartphone has been a market of a 2nd Tier high end smartphone at best. The most expensive/newest smartphones are not subsidized...

As it is clear that you don't know how subsidies work and what smartphones have subsidies this conversation is a waste of time