Apple’s (NASDAQ:AAPL) mobile monetization ability is almost four times Google’s (NASDAQ:GOOG), according to Raymond James analyst Tavis McCourt, making the iPhone maker more valuable to developers. According to McCourt, even though Google was likely to pass Apple in the number of apps for mobile devices soon, the statistic won’t matter because even though “Google has numbers, Apple has $$$, and developers want $$$.”
McCourt made his analysis after reviewing Google chief executive Larry Page statement from Thursday that the company was making money on mobiles at a “run rate” of $8 billion a year. The figure, which includes sales of advertising and apps from Google’s Play store, should be compared to Apple’s total mobile ads, content, and operating profit, the analyst said.
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“Since Google indicated the ‘vast majority’ of the $8 billion is mobile advertising/search, we can conclude that mobile advertising/search is likely growing more than 100 percent (from $2.5 billion a year ago to about $6 billion today),” McCourt said.
“This would leave approximately $2 billion in annualized revenue for apps/content through Google Play. How does this compare with Apple? In terms of how Google Play is monetizing, if we assume it is generating $2 billion/year of revenues, this compares to an $8.6 billion run rate for Apple’s iTunes/app store revenues … [The] comparison in app store monetization appears to be that Apple is monetizing about four times more effectively on its app store than Android, despite Android having substantially more customers globally.”
Raymond James has an Outperform rating on both Apple and Google shares.