iOS: Where the money is

February 23rd, 2011

Wow, it has been a while… if you’ve been breathlessly reloading this page for months waiting for a new post, well, your wait is over! Enjoy this… minor comment on a news item.

Amidst the recent hubbub over Apple’s decision to charge publishers 30% of revenue for in-app subscriptions, and to require that such subscriptions be the same price or cheaper as subscriptions outside the app, many online commentators are convinced developers will flock to Android instead. However, one need only look at the facts to get a different impression:

The App Store now controls 82.7% of the worldwide app market [with $1.8 billion in 2010], down from 92.8% the previous year, IHS notes. Research In Motion’s (Nasdaq: RIMM) BlackBerry App World is second with 2010 revenues of $165 million, translating to a 7.7% market share and year-over-year growth of 360.3%; Nokia’s (NYSE: NOK) Ovi Store is next at $105 million, corresponding with 4.9% market share (up 719.4% year over year), with the Android Market bringing up the rear at $102 million, accounting for 4.7% of the market but experiencing 861.5% annual growth (emphasis mine).

30% more of zero is still zero.

» Apple’s App Store Yields 83% of App Revenues in 2010 (via Apple Outsider and Daring Fireball)

It seems Google has finally realized Android is a viable competitor to the iPhone — it did outsell the iPhone in the US in Q1 2010, after all — and it has awoken from its slumber looking for a bite of Apple. At their I/O conference today, Google unveiled the details of their upcoming 2.2 version of Android, codenamed Froyo, and there’s plenty to get excited about.

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