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An Analysis of the EU’s and Other Data on iOS and Android Usage Finds That Apple’s App Store Generates $10.40 Monthly Revenue per User vs. $1.40 for Google Play

iPhone users spend 7.4x more on apps than Android users, study finds: Apple attracts high-spending users with premium apps.

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Recent findings indicate that iPhone users outlay seven times more on apps compared to Android users. This  contrasts with the earlier belief of a fourfold spending gap. Enhanced legal requirements for data transparency have led to this higher difference in user value between the spending habits on the two mobile platforms. 

Past Observations

Horace Dediu from Asymco recalls interactions with developers who designed apps for both iOS and Android. These developers noted that despite Android’s user base being double, the iPhone App Store revenue surpassed Google Play Store by twice. Dediu then calculated from this information that an iPhone user’s value was roughly four times that of an Android user.

Now, with more comprehensive data, Dediu provides a clearer view. Apple boasts 650 million active App Store users, whereas Google claims 2.5 billion. This indicates a global user ratio favoring Android by four times. However, the revenue ratio between Apple and Google has stayed consistent. For example, in 2016, the ratio stood at 29:15 (1.93), and in 2022, it was 81:42 (1.93).

Upon assessing the monthly app revenue per user for each platform, Dediu found that iPhone users average at $10.40, while Android users spend about $1.40. Dediu remarked that an “iPhone user is 7.4 times” more valuable than an Android counterpart.

Looking Ahead

Dediu touched upon the potential of Vision Pro apps, suggesting a revenue surge by ten times. He foresees a shift from the present $10/month spending on handheld devices to possibly $100/month for an immersive 360-degree 3D experience. Dediu believes Apple’s success lies in its ability to attract customers willing to spend more on apps.

Apple, in its annual WWDC event, announced the release of its high-priced Vision Pro mixed reality headset next year. CEO Tim Cook emphasized the dawn of the “spatial computing era”. The Vision Pro is equipped with five sensors, 12 cameras, and a dedicated chip developed by Apple. Following Apple’s announcement, Samsung and Google adjusted their release schedules and shifted their development strategy towards high-end products.

In his Asymco piece, Dediu emphasized the importance of accurately identifying customers. He observed that Apple hasn’t just grown its user base but has effectively drawn the “top 1 billion customers”.

SourceAsymco
Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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