Business of Apps: Interesting Statistics & Usage Trends

According to new data released today by mobile analytics firm Flurry
  • Amazon’s Appstore for Android is generating more revenue per daily user than the Google Android Market, which was recently rebranded as the Google Play store. 
  • Amazon vets apps for quality, runs promotions to entice users to return daily, and perhaps most importantly, is able to leverage its established user base of Amazon account holders who already have credit card information on file – perfect for one-click checkouts.
  • The firm found that Amazon revenue is 89% of  iTunes App Store revenue and Google revenue is 23% of  iTunes App Store revenue. In other words, for every dollar an iOS app makes, it generates 89 cents in the Amazon Appstore and 23 cents in Google Play.
  • The findings back up Flurry’s December report, which found the Android Market to generate 23 cents of revenue for every dollar generated by iTunes.
  • Amazon, who invented the one-click purchase, perfected online shopping with data, efficiency, and customer service. Meanwhile, running a store – whether digital or retail – is not one of Google’s core competencies.
  • The data speaks of Amazon’s place as a viable third ecosystem for developers looking to generate revenue
Opportunity for more players in the market
Amazon’s success may leave other players considering similar tactics – that is, forking Android to build their own Android-flavored OS and associated app store.
  • With regards to the fiit for Microsoft/Nokia ecosystem,  Microsoft + Nokia have a lot of the key assets to succeed, from a powerful OS, hardware know-how and, most importantly, building robust third party developer support. 
  • Samsung, is called out as one company that might see this path as appealing. Reasons
    • Most OEMs want to differentiate their software, if for no other reason than to please carriers which want unique phones. Software is the easiest way to achieve this. If all hardware makers have the same software, then differentiation drops.
    • Amazon is now competing strongly against Samsung in the tablet category, as well as its ability to make revenue for developers
    • Samsung has Bada (its smartphone platform). If they haven’t switched to that already, then it’s because Android is working for them well enough, until possibly now. If that’s the case, a fork of Android again looks like an alternative to evaluate.
Flurry's Research Methodology
  • Examined a set of top-ranked apps that have a presence on all three stores: Apple, Amazon and Google Play. Combined, the apps average 11 million daily active users.
  • Set the revenue generated in the iTunes App Store to 100%, then compared the relative revenue generated by Amazon and Google to that of the App Store. 
  • It was found that Amazon revenue is 89% of App Store revenue and Google revenue is 23% of App Store revenue. Or, in other words, for every dollar an iOS app makes, it generates 89 cents in the Amazon Appstore and 23 cents in Google Play.