Android mobile app revenues to hit US$6.8 billion in 2013

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Android mobile app revenues are expected to nearly double this year from last year. ABI Research expects that they will reach almost US$6.8 billion by the end of the year. While iOS still dominates this space, estimated to be worth US$27 billion in 2013, Android is catching up quickly thanks in large part to dominant smartphone sales. For example, Android accounted for 80% of smartphone shipments in Q2.

“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 factors are also working in Android’s favour. Among them are Android’s targeted online advertising and willingness to offer carrier-based billing. For example, ABI Research has found that carrier-based transactions show significantly higher completion rates than those done by credit or debit cards. Carrier-based billing could also prove to be an advantage over iOS which is limited to in-house payments in emerging markets where low-cost smartphones are catching on quickly.

The future looks equally promising for Android. Revenues could increase as much as 65.9% when compared to iOS smartphone app revenues over the next twelve months.

Source : ABI Research