Content vs Advertisement

According to Piper Jaffray (via CNN 11/21/2011)

• Since its inception, Google's Android Market Place has generated about 7% of the gross revenue of Apple's App Store.
• Apple has about 85% to 90% market share of the total dollars spent on mobile apps.
• Only 1.3% of Android apps are paid, compared with 13.5% of iPhone's.
• Apple developers have made more than $3.4 billion since 2011, compared with less than $240 million for Google developers.

Apple and Google have different business models. Apple makes money on hardware and content, including apps, while Google is an advertisement company, which monetizes free content provided by others. On average, to get the same money on Android, an iOS (Apple) app developer would have to reach 10 times more customers. With Androids market share only twice as big as iOS, the math for quality content is skewed toward Apple. But if you are willing to spend time on app selection and device configuration, you can save money by using an Android device. I guess, there's a business model available for premium phones that for a fee provide the best of both worlds.

In the meantime, VBeat reports about the latest and greatest in the iOS world:

Top Paid iPhone Apps

1. Angry Birds
2. Fruit Ninja
3. Angry Birds Seasons
4. Cut the Rope
5. Tiny Wings
6. Angry Birds Rio
7. Words With Friends
8. Camera+
9. Doodle Jump
10. Plants vs. Zombies

The top 10 paid iPhone apps were all games, with the exception of Camera+, a photo app with tons of cool filters. Angry Birds claimed the top spot, and it’s no surprise. 2o11 was the year Angry birds went from a niche meme to a full on cultural phenomenon. Making an unlikely appearance on the Top 10 list is Doodle Jump, a basic but “insanely addictive” platformer that first appeared on the iPhone nearly two years ago.

Top Free iPhone Apps:

1. Facebook
2. Pandora Radio
3. Words with Friends Free
4. Angry Birds Free
5. Skype
6. Netflix
7. Angry Birds Rio Free
8. Groupon
9. Fruit Ninja Lite
10. Twitter


tags: mobile, apple, google, business, model