Despite 8% Dip, Apple’s App Store Still Ahead Of Rivals

Updated on

Apple’s App Store accounted for 58% of global app revenue last year, according to new data released by research firm IDC on Monday. Rival Google Play accounted for a much smaller share of 36%.

Google dominates in volume

According to IDC’s estimate, just 15% of global app installs came from Apple, and despite that, it accounted for a large portion of direct app revenue. In fact, Apple’s share of total app installs declined 8% on a year over year basis, despite that, the global direct app revenue share it generated saw a massive rise of 36% on a year-over-year basis. Total collections for 2015 were $34.2 billion.

In 2015, smartphone users installed nearly 156 billion apps, according to IDC estimates. The firm’s estimate of direct app revenue does not include advertising, a segment dominated by Facebook and Google. IDC expects the iPhone maker to continue to outperform Google Play in revenue generation.

“Facebook and Google continue to dominate mobile ad spending thanks to the scale and sophistication of their network effects, with Facebook’s moves to incorporate news and other interests into its experience will likely pull traffic and install volumes away from discreet apps,” said John Jackson, research vice president for IDC’s Mobile and Connected Platforms segment.

Google Play accounts for 60% of install volume – a lot more than that of the App Store. The reason is because Android phones in use outnumber iPhones. Chinese Android app stores and stragglers like Amazon’s AppStore account for the remaining percentage.

Services getting important for Apple

Apple intends to change its story, and therefore, these are important data points for it. Smartphone and computer sales contribute the largest share of Apple’s revenue, but the company is putting additional emphasis on its services business this year. The App Store is the crown jewel of the services business. iPhone users spend more for apps and in-app purchases because the iPhone is priced like a premium product. Google Play is Apple’s primary app store rival, and is the most popular app store for Android devices.

Recently Apple CEO Tim Cook said, “During the March quarter services revenue was our highest ever. Services revenue jumped 20% to $6 billion. App Store revenue was up 35% to beat last quarter’s all-time record.”

On Monday, Apple shares closed up 0.08% at $92.79. Year to date, the stock is down almost 14%, while in the last year, it is down by over 27%. The stock has a 52-week high of $132.97 and a 52-week low of $91.85.

Leave a Comment