Though Android is now dominating global mobile OS market share, it seems that Android users still aren't as free with their money as iPhone-owners. Overall Android app revenue is still lagging behind iOS. However, new data from analyst firm ABI Research is showing that Android app revenue is rising faster than app revenue on iOS.
“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, a senior analyst at ABI. “This year, Android smartphones will ship by a factor of more than three-to-one to iPhones.”
ABI's new report predicts that Android app revenue will reach $6.8 billion by the end of this year - almost double the app revenue the platform generated in 2012. Over the next year, Android app revenues on smartphones are projected to increase anywhere from 59.1% to 65.9% over iPhone app revenues.
The analyst firm cited several factors that could push Android app revenue toward iOS levels, including Google's strength in analytics and targeted in-app advertising. Also, the Android platform's ability to charge app payments to carrier bills was mentioned as a factor to watch, especially in emerging markets where credit card payments are not as prevalent.