Mobile Application Market Research
Beijing, August 11th – According to foreign media reports, an article published on the Forbes website recently compared data regarding application development across three major mobile platforms: Apple's iOS, Google's Android, and Microsoft's Windows Phone. The findings revealed that regardless of the platform, developers earn very little direct income from app sales. For example, each download of an Android app generates less than 2 cents for the developer.
Below is the main content of the article:
In recent years, there has been unprecedented enthusiasm for developing mobile apps on both iOS and Android platforms. However, based on the installed user base of each mobile platform and payment information from various companies, most developers earn only a meager income in this area.
It is widely believed in the industry that Google dominates the mobile market with 900 million users, followed by Apple with 600 million iOS users, and Microsoft ranks third with approximately 12 million Windows Phone sales (81% sold by Nokia).
Each mobile platform wants to attract app developers, and each company showcases its market size in different ways.
At its WWDC World Developers Conference, Apple stated that its App Store now has 1.25 million applications, with cumulative downloads reaching 50 billion times, and it has paid developers $5 billion. For Apple, paying such an amount to the developer community is something to be proud of, and sources close to Apple say that internal data from the App Store shows that this figure is close to the actual amount paid to developers.
Meanwhile, at the world’s largest Android developer conference, Google I/O, Google claimed that its Google Play store has over 800,000 applications from 150,000 developers. Although Google did not disclose the revenue figures for these applications, recent financial reports show that Google has paid developers approximately $900 million. External research analysts believe that the total number of Google Play app downloads is about 4.8 billion times, close to the number announced by Apple.
On the other hand, Microsoft claims that its app store has 160,000 applications from 45,000 developers. In a recent interview, Microsoft executives stated that on average each user downloads 54 apps, resulting in a cumulative total of 650 million app downloads. Although Microsoft has not disclosed performance data for its mobile department, based on payable amounts mentioned in Microsoft's Form 10-Q filings before and after the launch of the app store over the past few quarters, it is estimated that approximately $100 million in expenses since 2011 should be attributed to the app store.
Based on these data, we can summarize as follows:
User numbers: Google 900 million, Apple 600 million, Microsoft 12 million
App numbers: Google 800,000, Apple 1.25 million, Microsoft 160,000
Developer numbers: Google 150,000, Apple 235,000, Microsoft 45,000
App downloads: Google 4.8 billion, Apple 5 billion, Microsoft 650 million
Payments to developers: Google $900 million, Apple $5 billion, Microsoft $100 million
Clearly, Apple leads in the total number of apps and developer earnings, but it remains necessary to determine how much developers truly earn through these platforms.
Minimal Income Per Download
Based on the above data, we can calculate the average number of apps developed per developer and the income they can obtain from these apps. Of course, because a small portion of developers perform exceptionally well while most will fail, here we can only calculate averages.
Average number of apps per developer: Google 5, Apple 5, Microsoft 3
Average downloads per app: Google 60,000, Apple 40,000, Microsoft 4,062
Average income per download: Google $0.01875, Apple $0.10, Microsoft $0.1538
Based on these data, we know that on average each developer is busy, developing between 3 to 5 apps. Interestingly, Android leads in terms of average downloads per app, but this advantage is largely offset by low income, with each Android app download generating only 2 cents for the developer. Apple performs five times better than Android, with each download generating 10 cents for the developer. However, Microsoft's platform seems more effective, with each download generating 15 cents for the developer, but this advantage is offset by fewer downloads, with the average number of downloads per app being only 10% or even less compared to the other two platforms.
The average retail price for a paid app is $0.99, which shows the impact of free apps on average income. Android dominates the free app market, which significantly affects the average income of developers, while Microsoft's Windows platform has a smaller proportion of free apps, making it an advantage.
But how much does this affect actual income?
Impact on Developer Wallets
By multiplying the average income generated per app with the number of app downloads, we can find out how much income an average developer can generate from one app. Multiplying this figure by the average number of apps created per developer gives us their overall income in this area.
Average income per app: Google $1,125, Apple $4,000, Microsoft $625
Average income per developer: Google $6,000, Apple $21,276, Microsoft $2,222
From this, we can see that each app seems to generate decent income. A hardworking iOS developer can buy a new car, whereas Android and Windows developers might have to shop in the second-hand market. On average, each iOS app generates $4,000 in income for the developer, putting Apple in the lead, but how many developers can truly make a living from app sales? Direct income from app sales isn't enough to cover large team expenses, though other revenue channels (such as advertising) help increase revenue for developers.
Of course, these are just average values, and many people hope to find the next big hit that brings in more than the average income. But for every app that exceeds the average, it means others fall below the average.
Where Are the Opportunities?
However, there is still hope ahead. Apple has already built a mature market for developers, and Google and Microsoft also have opportunities for growth. For Google, it should focus on helping developers monetize their apps and raise income levels to keep pace with Apple. Even if Google can only reach half of Apple's average income per download, it would mean that developers could match Apple's total income. For Microsoft, it should aim to increase the number of users. If Microsoft can maintain the average income per app while increasing the user base, Microsoft might gain an edge in the platform competition.
Nevertheless, under any circumstances, efforts should be made to enhance the monetization capabilities of free apps, which may be the next opportunity for developers and offer broader prospects than existing ones.
Every app developer hopes to create the next big hit, but like any market, most people will inevitably be left behind without receiving returns for their efforts. One day, mobile apps will follow the same path as other industries in the past. Whether it was gold prospecting in the Yukon River in the past, websites in the 1990s, or today's app development, most of the income ends up in the hands of those who drive development rather than participate in it. Levi Strauss accumulated wealth by selling picks and shovels to prospectors; Adobe, Amazon, and Google amassed wealth by supporting internet developers. As the mobile revolution progresses, some new players will provide tools for app development, and they may be the real winners.