Apple App Store Generates Twice The Revenue Of Google Play Store
Apple just posted its power-packed quarter that fetched it all-time highest revenue collection and sales of iPhones. The Cupertino giant recorded whopping first quarter by selling 78.3 million iPhones and generating $78.3 billion revenue. In the quarter, 69% of Apple's business was created by the sale of iPhones.
This time around, the revenue generated by Apple's App Store is twice of what Google Play is making. Other than the iPhone, Apple's other products like iPad and Mac are also contributing decent sales numbers to the overall quarter. Similarly, Apple services like Apple Pay and iCloud are also doing well. There are 2.2 million apps listed on the App Store and the revenue graph seems to be going up with every quarter.
App Store's success could be a point of concern for Google as there are more Android users than Apple, but iOS users seem to be better app buyers than Android. Google currently stocks 2.6 million apps on Google Play but is still not making as much money. Well, this is not the first time when App Store revenue has surpassed Google Play's revenue as Q1 2016 also witnessed the same trend.
Apple services have made a total of $7.17 billion revenue. It is worth noting that Apple's services have generated more revenue than iPad and Mac sales. The App Store mainly consists of apps that come with in-app subscriptions such as Spotify, HBO Now, and much more. Google also has many apps, but Apple seems better at making moolah out of it. In total, the Apple services revenue has grown by 18% compared to last year.
Among all the other segments, Apple's App Store has shown the most growth. Given the increasing growth, Tim Cook expects Apple Service to soon debut on Fortune 100 company by the end of 2017. Also, Apple's App Store is good at generating better revenues than Google Play, which is why developers prefer to release apps on App Store first. Even Nintendo preferred to launch Super Mario Run on App Store first.
These results sure look encouraging for Apple and the company seems to be on the right track. Taking a cue from growing trends, Tim Cook is also expecting to double the revenue of Apple Services in the next four years.