Many people in the U.S. forget just how popular smartphones and gaming is around the world with app revenue in the billions, and while iOS is very popular in the U.S., on a global scale it is a drop in the bucket compared with Google's Android OS – and it continues to grow yearly.
This trend show that Google Play finally surpassed iOS in annual downloads of Apps by over 15-percent in 2013, whereas in 2012, iOS was slightly a head of Google.
The chart above shows that while Google Play may have surpassed iOS in volume of apps downloaded in 2013, iOS is still substantially ahead of Google when it comes to revenue on those downloads. So many of the Android apps are free and I know from personal experience that Android users will act like $1.99 for an app is $199 out of their pocket, so many tend to stick to the free versions.
During 2013, the little country of Japan surpassed the U.S. in App Revenue and now sits in the number one position. Japan had 3.3 times the revenue grew in 2013 and was driven largely by Gaming Apps, however, one good thing was that most of their purchases came via Google Play. The result of this was that the gap between the iOS App Store and Google Play also shrank. After Japan and the U.S., South Korea came in a distant third and the U.K. was fourth.
Another interesting trend was that for the first time App store games actually surpassed the sale of games optimized for hand-held devices, with iOS Apps gaining the most early in the year, but by year's end, Google Play Store had also passed up the handheld games. Combining iOS and Google Play downloads, consumers spent three times the amount on Apps than were spent on the optimized hand-held games.
The trend of using the "freemium" model continue to grow – developers soon found out that they could make a lot more money by giving the App away for "free," such as Candy Crush Saga, but then charge for premiums throughout the game – buy more time, buy more chips, buy access to more levels, etc. Revenues for this type of App have skyrocketed over the past couple of years to where Gaming Apps make 93-percent of their revenue this way and non-gaming Apps make 57-percent of their revenue using the freemium method.
The top five categories are listed above with the number one and two best-selling App in those categories that use the freemium method of selling. In the Games category, we have Puzzle and Dragons and Candy Crush Saga, which is no surprise, as I know many older women that are simply addicted to Candy!
Let us know on our Google+ Page if you are downloading and playing games and if you try and buy the App outright, or do you use the freemium method of "paying."
About the Source: App Annie data and products are the industry standard, used by over 90 percent of the Top 100 grossing publishers. More than 350,000 apps rely daily on App Annie Analytics to track their downloads, revenues, rankings and reviews. The company is tracking the most downloads and revenues of any app or eBook store market data
company to date, at over 33 billion downloads and more than US $8 billion in app store revenues.