Apple still rakes in lion’s share of app revenues, but Google is closing gap fast

Published on Monday, April 22nd by Dave Evans
Search giant’s app income jumps 90 per cent in just one quarter

App revenues at Google Play are growing much faster than those at rival Apple’s iTunes, though it’s the latter that still accounts for three quarters of all purchases. Collectively the app stores brought in $2.2 billion in the first three months of this year, according to Canalys, with Apple’s App Store generating $1.48 billion of that. But Google is catching up fast. Separate data from another research firm, App Annie, show the search giant has made significant headway from a year ago when its apps generated just a tenth of Apple’s revenues. In fact, Google’s revenues jumped 90 per cent in Q1 2013 from the fourth quarter last year.

By comparison Apple’s app store revenues grew by a quarter in the same period, compounding worries that the Cupertino giant – which is due to release an update on its sales figures tomorrow – is suffering from weakening demand for its hardware staples, the iPhone and iPad.

App market operators such as Google and Apple generally take 30 per cent of the revenues, with the balance going to the app developers.

Although last month Apple upped the stakes with a pledge to put aside a bigger cash pot for those making programs for its platforms.

gomonews.com