The growth of leading smartphone ecosystems offers advantages for application software developers that want to reach the largest addressable market for their apps. As a result, Google Android smartphone mobile app revenues are projected to reach almost $6.8 billion by the end of 2013 -- nearly doubling the revenues from last year.
The Android platform has some way to go before catching the Apple iOS smartphone revenues. Nevertheless, the smartphone app market will be Android’s most fruitful growth opportunity, when compared to other devices.
According to the latest global market study by ABI Research, Android smartphone app revenues will increase from 59.1 percent to 65.9 percent when compared to iOS smartphone app revenues over the next twelve 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 at ABI Research.
This year, Android smartphones are still on a high-growth trajectory and will ship by a factor of more than three-to-one, compared to iPhone smartphones.
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 mobile 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 Latin America and Asia-Pacific, where low-cost smartphone sales are beginning to skyrocket.
ABI Research forecasts on the amount of revenue generated by native mobile applications and device types for all the major regions and key countries. The revenue sources considered are: pay-per download (provided separately for books); subscription; in-app purchase; and in-app advertising.