Android mobile app revenue to hit US$6.8b this year

AndroidAndroid’s smartphone mobile app revenues are projected to reach almost US$6.8 billion by the end of 2013, nearly doubling its revenues from the previous year, according to ABI Research.

The Android platform has some way to go before catching iOS’s smartphone revenues but the smartphone app market will be Android’s most fruitful hunting ground compared to other devices.

ABI Research estimates that Android smartphone app revenues will increase from 59.1 percent to 65.9 percent when compared to iOS smartphone app revenues over the next 12 months.

“Apple’s iOS still leads all the other mobile operating systems’ revenues by a significant margin; however, the greater number of Android smartphones in use is clawing back Apple’s lead in this market,” said Josh Flood, Senior Analyst of ABI Research. “This year, Android smartphones will ship by a factor of more than three-to-one to iPhones.”

Other key contributors to Android’s app revenues are its effective app advertising. Android’s digital advertising, which is primarily based on Google’s powerful analytics search engine and vast experience, gives the company a big edge over Apple.

Google has been incredibly successful at mastering targeted online advertising. Additionally, Android’s willingness to incorporate carrier billing for its app purchases could prove to be a very decisive factor against iOS in-house payments.

App purchases through mobile carriers have recorded significantly higher successful completions when compared to paying by credit or debit cards. This is also particularly notable in emerging markets such as Asia-Pacific, where low-cost smartphone sales are beginning to rocket.

 

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