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The last few years have seen an unprecedented number of people rushing to develop mobile apps for iOS and Android. But looking at the installed user base on each platform and information on the payouts made by the different companies, it appears that the vast majority of developers will find themselves with little revenue to show for. With different forums aimed at attracting developers, each company handles announcing the size of their markets differently. 5 billion paid off to developers in the last year. To the company, it is a sign of pride to be able to pay this developer community.
Internal data from the app store, gathered from sources close to the company, indicate that the numbers are in line with the actual payments made to developers. O, the largest Android developer conference, Google touted 150,000 developers responsible for over 800,000 apps. Microsoft, meanwhile, has been claiming 160,000 apps in their store from 45,000 developers. In a recent interview, Microsoft officials claimed that the average user downloaded 54 apps, which would put their download count at 650 million to date. Looking at this, it is clear that Apple is winning the game in terms of total number of apps and money paid to developers. But lost in the shuffle is how much money developers can actually make on those platforms.
Based on this, the average developer on those platforms is pretty busy, developing 3 to 5 apps depending on the platform. Apple fairs 5 times better, bringing in a dime for every one of the 40,000 potential app downloads a developer could strive for. 99, what we see here is the direct impact of free apps on those marketplaces. Android’s substantial lead in offering free apps cuts deeply into the average revenue paid out to developers while the smaller availability of free apps on the Windows platform may work to its advantage. But what does that mean in terms of actually revenue?
Multiplying the average revenue per app by its average number of downloads, we can get a sense as to what an average developer can expect to make on an app today. What we see here is that while decent amounts of money can be made on an app, a hard-working developer on iOS will be able to get a new car, while Android and Microsoft developers will be forced into the used car market if they plan to take those earnings on the road. 4,000 in average revenue per app, Apple has a lead but it still begs the question as to how many developers can actually make a living directly from apps on any platform. Of course, these are average values and many hope to find the next big hit, the one that will be on the higher end of the median. But for every app that goes north of those numbers, the average for the remaining apps drop.
While Apple has developed a rich market for developers, Google and Microsoft both have opportunities to improve. For Google, the focus should be on improving the numbers by helping developers monetize their apps so they can come more in line with what Apple can offer. Even if they only reached half of what Apple does in terms of revenue per download, they would be able to match the revenue developers make. In all three cases, however, there is much work to be done to increase monetization of free apps. And that may be the next growth opportunity for any developer as it presents an opportunity that is substantially larger than the existing one.