Android Mobile App Revenues Will Reach $6.8 Billion in 2013 as Importance of App Advertising Strategies and Carrier Billing Grows

Android’s smartphone mobile app revenues are projected to reach almost $6.8 billion by the end of 2013, nearly doubling its revenues from the previous year. The Android platform has some way to go before catching iOS’s smartphone revenues, nevertheless, the smartphone app market will be Android’s most fruitful hunting ground compared to other devices. According to new data from market intelligence firm ABI Research, Android smartphone app revenues will increase from 59.1% to 65.9% when compared to iOS smartphone app revenues over the next twelve months.

“Apple’s iOS still leads all the other mobile operating systems’ revenues by a significant margin; however, the greater number of Android smartphones in use is clawing back Apple’s lead in this market,” says senior analyst Josh Flood. “This year, Android smartphones will ship by a factor of more than three-to-one to iPhones.”

Other key contributors to Android’s app revenues are its effective app advertising. Android’s digital advertising, which is primarily based on Google’s powerful analytics search engine and vast experience, gives the company a big edge over Apple. Google has been incredibly successful at mastering targeted online advertising. Additionally, Android’s willingness to incorporate carrier billing for its app purchases could prove to be a very decisive factor against iOS in-house payments. App purchases through mobile carriers have recorded significantly higher successful completions when compared to paying by credit or debit cards. This is also particularly notable in emerging markets such as Latin America and Asia-Pacific, where low-cost smartphone sales are beginning to rocket.

These findings are part of ABI Research’s Mobile OS, Browsers and Applications Research Service. The Market Data product presents ABI Research's forecasts on the amount of revenue generated by native mobile applications and device types for all the major regions and key countries. The revenue sources considered are: pay-per download (provided separately for books); subscription; in-app purchase; and in-app advertising.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.