![]() We will calculate the ratio of Lifetime ARPU (lifetime revenue divided by lifetime downloads) of different apps in App Store and Google Play in the United States. Let’s see how big is the advantage that mobile apps monetized through subscriptions in App Store have over Google Play apps. ARPU of apps monetized through subscriptions is 2.5-25x higher on iOS than on Android The truth is, the difference between how subscriptions work in the two platforms gives iOS apps an unfair advantage. 97% of these apps are monetized through subscriptions. Interestingly, of the 41 non-gaming apps in the top 100 grossing on iOS, only 15 are also included in the top 100 grossing on Google Play. Оne could say that iPhone users are different from Android users: iPhone users play games less, and meditate and work out much more than Android users. This contrast becomes even more evident if we compare the share of gaming apps in the top 200 or 500 grossing apps on each platform.īut why is there such a big difference between the two major app stores in the US? In contrast, only 59% of the top 100 grossing apps in the App Store are games. Only 59% of the top 100 Grossing apps on the Apple App Store are games compared to 90% on Google PlayĪs of the end of September 2019, 90% of the top 100 grossing apps in Google Play in US are games. → Learn growth and realize the maximum potential of your product in Product Growth Simulator. → Learn data-driven product management in Simulator by GoPractice. → Test your product management and data skills with this free Growth Skills Assessment Test. Lots of sneaky subscription apps will first stop growing, and then disappear altogether from the App Store over time. ![]() The revenue of Calm and Facetune on iOS will drop by a factor of 2-4, and they won’t be able to justify 1B valuation.In this article I will use revenue and downloads estimates provided by Datamagic to explain why I believe the following will happen after Apple’s new adjustment to iOS app subscriptions: This change went unnoticed by media outlets covering iOS 13’s release, but I believe it will have a profound impact on the mobile apps ecosystem in the Apple App Store. I said “used to work” because Apple made a small change to subscriptions in iOS 13, the latest version of its mobile operating system. To be more specific, the obscure way that subscriptions used to work in iOS. So what is their secret sauce? Subscriptions. These apps aren’t powered by any innovative technology they don’t have network effects and they are pretty easy to copy. The maker of Facetune app raised $135M at a unicorn valuation In July. ![]() In February, Calm raised $88M in funding at a $1B valuation. Some of the companies developing pretty basic apps have even become unicorns. An app called Life Advisor generated over $1M in revenue in the last month alone. QR Code Reader by Tinylab made over $800K last month and over $13M over the last few years. During this period, lots of simple apps started making millions of dollars per month.įor example, Celebrity Voice Changer makes over $3M per month and raked in almost $30M in the past few years. The last few years were big for non-gaming subscription-based apps in the Apple App Store. “You never know who’s swimming naked until the tide goes out.”
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