According to the latest report from ABI research, Android smartphone app revenues are expected to reach $6.8 billion – nearly twice more than last years numbers.
While that may sound like a lot, that’s only about 60% of the total posted by iOS – the clear leader in app revenue amongst all mobile OS’s.
While Apple’s 65% share in smartphone and tablet app revenue is hard to contend with, Google’s experience in online advertising is translating well into the mobile world, and is one area where Android apps excel – targeting online audiences through in-app advertisements. This is especially significant as some 90% of all apps are now free, and earn their cash through in-app ads.
Android’s open source approach is also more appealing to carriers, who have more incentive to choose Google’s OS because its ability to allow carrier billing for apps. Carrier billing has significantly higher completion rates than credit or debit cards.
When it comes to smartphones, Android app revenue is expected to rise to 66% of iOS totals next year. Apple may have something to say about that come next month, if the rumors are true.