Google Play Store Revenue to Catch up to Apple by 2018

Google Hosts Its Annual I/O Developers Conference

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Though Google’s (NASDAQ:GOOG) Android has long beaten Apple’s (NASDAQ:AAPL) iOS in terms of user base, Apple has still managed to stay ahead in revenue earned from mobile apps. However, even that’s expected to change. Radio Free Mobile analyst Richard Windsor projects that mobile app revenue from the Google Play Store will catch up to Apple’s App Store in 2018, according to Quartz’s Steven Max Patterson. Patterson notes that Android’s 80 percent market share is driving app revenue despite Android’s lower per-user spending.

Android devices’ affordability are a key contributor to the operating system’s growth. IDC projected in February that the average selling price (ASP) of smartphones in 2013 was $335, and that average is expected to drop to $260 by 2018. Android’s ASP in 2014 is expected to be $247 in 2014 and $202 in 2018, significantly lower than iOS’s projected ASP of $649 in 2014 and $610 in 2018. IDC projected that Android would “maintain its reign as the leading operating system,” with “attainable price points” for vendors and consumers. At the time, IDC noted that iOS devices’ price points, well above others in the industry, could limit the operating system’s growth in new markets:

“iOS will remain the clear number 2 platform behind Android and will have the highest ASPs among the leading platforms. Apple has maintained a tight focus on the high end of the market with its most current devices, a trend we expect to see continue into the future. This could keep iOS from realizing greater volumes within emerging markets, but sales in mature markets will offset much of the difference.”