iOS continues to rule the roost when it comes to app earnings globally. While Google Play commands a larger market share, it continues to trail the Apple App Store by a vast margin when it comes to sheer earnings.
During the third quarter of 2020, Google Play Store generated 10.3 billion U.S. dollars worldwide, while the Apple App Store generated a total of 19 billion U.S. dollars.
But what are major reasons behind this phenomena? Why do users spend more on Apple App Store than they do on Google Play? Is it about the quality of the apps? Or the OS itself? Or even the kind of users that these app stores target?
Let’s explore this in more detail by going through these five top reasons why iOS apps continue to earn more than Android apps.
Why Is iOS More Profitable Than Android?
The following factual reasons will help you see why is the iOS market beneficial for businesses and developers alike.
1. Apple Users Have A Better Purchasing Power
The first reason why iOS apps generate more profit than Android apps is thatApple users have the purchasing power to spend on devices,which in turn means they are also willing to spend on apps.According to Sensor Tower, by 2023, the global user spending of iOS users will amount to 96 billion U.S. dollars, whereas Android users will spend approximately 60 billion U.S. dollars.
Now, let’s look at more stats similar to the one mentioned above:
- Between January 2020 and June 2020, Apple generated about $32.8 billion in revenue via paid apps, subscriptions, mobile games, and in-app purchases, while Google managed $17.3 billion.
- Apple users spent $22.2 billion on mobile game apps, while Google users spent $14.4 billion between January 2020 and June 2020.
- In quarter three of 2020, the global revenue generated from mobile apps on all platforms amounted to $28 million, mostly through Apple.
The stats and figures indicate how keen Apple users are to spend and reflect on their overall purchasing power.
2. More In-App Purchases
Another reason why Apple’s profit margin continues to surge is because of the in-app purchases compared to Android. Most apps uploaded on the Google Play store are free and offer a maximum set of features free of charge. Such apps are also known as freemium apps.
You will find that Google apps offer in-app purchases to remove ads placed inside the apps, unlike Apple. The Apple App store has premium apps that showcase various features; however, they’re locked, and users can access them by paying for them.
The abundance of freemium apps is why Google fans would much rather download and enjoy a free app instead of a paid one. Additionally, they would also make-do with the in-app ads and refrain from spending money to remove those ads unless they’re using the app often.On the other hand, Apple users would most likely remove annoying ads and pay to enjoy additional features.
Apple offers the credibility that Android cannot, and why is that? It’s because Apple has strict guidelines on building an iOS app before you submit it for a review, whereas Google isn’t that strict about it.
If you ask any Android user why they prefer not to spend,they would tell you it’s because they can’t depend on the app or the developer. However, an iOS user will tell you the opposite. They’ll let you know they’ve used the app long enough to spend a few bucks on it willingly.
So, why is there a difference? The difference is preference exists because Apple has managed to maintain a quality standard with its apps. There are “set in stone” iOS app guidelines that developers need to meet before uploading the app. Once the app is submitted, they have to wait for the Apple team to review the app, which can take up to 2 weeks, so make sure you follow the guidelines.
The quality of every Apple app is the reason why Apple is more credible as compared to Android.
Apple users can depend on the operating system much more easily as compared to Android users. The reason for this is the ecosystem that Apple has followed since its launch. The ecosystem of iOS revolves around restricting their users only to use their services and banning any other third parties.
Let’s look at it in further detail:
- Apple Pay – The iOS users can only make any in-app or App Store purchases using the Apple Pay payment model. It’s extremely secure and easy to use. The digital wallet is accessible from iPhone, iPad, Mac Books, and Apple Watches. Apple vouches for data security and transactions made through the payment model, making it highly dependable.
- iTunes – The Apple iTunes is the built-in and only available media library to Apple users. While there are other music-based apps, iTunes remains the only app through which users can download and play music. The credibility offered by the iTunes store is the reason Apple users easily depend on the app.
How is this different from Android?
While Android does offer an official payment known as Google Play, very few users leverage it because of the other payment options available on the Google Play Store. The other options include credit/debit cards, mobile phone billing, PayPal, and Google Play gift cards. The numerous payment methods make the users doubt the operating system’s dependability, which is not an issue for Apple.
5. Loyal User-Base
Apple has a loyal user-base. Once you use an Apple device, there is no going back is a globally known phenomenon. Apple not only owns the larger profit margin; it also manages to retain its customers for a long time. It’s been among the top 5 preferred smartphone brands since 2009 and continues to be a favorite. Apple users stick to their iPhones because of the security and dependability the devices offer. Regardless of the battery concerns the smartphone possess, the users continue to stay loyal to the brand because they claim:
- They get software updates directly from Apple, which are available to all iPhone models simultaneously compared to Android.
- The iOS apps have no fragmentation, and they will never pose any problems or bugs because of the maintained quality standard.
- Apple has some default apps installed on the smartphone, which users can uninstall, unlike Android.
The continued loyalty is why iOS apps make more money because more users equal higher profits for Apple than Android.
Apple has a higher chance of making profits than Android, even though Android holds a considerable market share. With that said, Android apps do generate profits, but it’ll take a lot of improvement for the operating system to get ahead of Apple.