Android Still Trails iOS as a Money Maker for Devs
By Ryan Kim May. 27, 2011, 6:37am PT 31 Comments
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While Android Market is on pace to overtake Apple’s App Store in overall apps later this year, it’s trailing far behind as a money-making platform for developers. New analysis from app research firm Distimo found the Android Market is still dominated by free app downloads, and that paid downloads do much better on the iOS platform.
The latest Distimo report found that just two paid Android apps have ever eclipsed the half-million milestone, while six iPhone apps did that in two months in April and May. In a comparison of paid game downloads, Distimo found there are five games in Google’s Android Market with over 250,000 downloads worldwide, while the Apple App Store for iPhone had 10 games that hit 250,000 downloads in the United States alone in two months. This isn’t that surprising because Apple’s App Store has about three times as many paid apps as Android.
Overall, 79.3 percent of all paid Android apps have been downloaded less than 100 times, and only 4.6 percent of paid apps were downloaded more than 1,000 times. Among free apps on Android, only 19.6 percent of apps have been downloaded less than 100 times, and 48.2 percent were downloaded more than 1,000 times. Android users appear more likely to download free apps, something we’ve noted previously.
Historically, only 69 Android free apps have been downloaded between 5 and 10 million times, and 27 apps have been downloaded more than 10 million times. Only one, Google Maps, has eclipsed the 50 million mark. This suggests than even among free apps, there are few outright successes.
One of the issues appears to be that there is less turnover in the top rankings for the Android market. In April, in the App Store for iPhone, there were 843 distinct applications in the top 300 free rankings, and 584 unique apps in the top 300 paid applications. For the Android Market, there were only 388 distinct applications in the top 300 free apps, and 363 apps that appeared in the top paid 300 paid apps in April. Among top-10 applications, there have been only 26 free and paid apps in the top 10 rankings for April in the Android Market, while 94 iPhone applications were in the top 10 free and paid in the App Store in April. That lack of change in the rankings can be hard on developers, who look to the charts as a way to get attention and free marketing.
Free apps can still be monetized through advertising, but that works best when you have a lot of downloads, as does Rovio’s Angry Birds, a level of success many developers don’t achieve. Or there’s the potential for in-app purchase revenue, something Google has addressed by recently turning on its in-app purchase payment system. Google has been taking steps to improve the overall Android Market experience with more charts and better curation. It has also been tinkering with its ranking algorithm to reward more engagement. As I recently reported, Android is still a popular place for developers, especially those looking to push boundaries, and it’s growing as the primary platform for some devs. And with Android device sales soaring, it makes sense for developers to target the platform. But it will take some more time before the platform becomes a real money-maker like Apple’s App Store.
Apple’s hard work at winning over record labels may well be rewarded, according to Bloomberg BusinessWeek. The publication says Apple’s upcoming cloud music service will offer the ability to scan your hard drive, and then mirror your music collection on its own servers, according to three people “briefed on the talks” between Apple and the labels. Not only that, but if some of your tracks are of poor quality, Apple’s service would automatically replace it with a better version, the sources said.
Folks that have already decided on Samsung’s biggest Honeycomb tablet still have one more choice to make: Will their Galaxy Tab 10.1 have an integrated mobile broadband radio or not? According to an FCC filing found by Engadget, the tablet model GT-P7310, already known to be a Wi-Fi only tablet, has undergone device testing, which is a good sign the tablet will be sold here in the U.S.


Attention startups: Now’s a good time to be on your best behavior. The entrepreneurship-focused Kauffman Foundation nonprofit is officially on the hunt for the 50 most promising startups from around the world for its second annual “Startup Open” competition.
For several years at least, experts have predicted that so-called “YouTube for the Enterprise” will be the next big thing in corporate communications. There are plenty of offerings in the space, but what do actual workers think of the idea? In broad research looking at use of video at work in several contexts, including videoconferencing and quick, YouTube-type videos for demonstration and training purposes, Forrester found 72 percent of those surveyed “don’t want desktop videoconferencing at work” and generally concluded that many workers have a weak appetite for video — including “YouTube for the Enterprise.” So is the technology ever going to live up to the hype and make a real impact on the way we work?
Earlier this week, when networking goliath Cisco all but confirmed it had shut down an ambitiously named Entertainment Operating System (EOS), I suspect some folks at Facebook may have chuckled quietly to themselves. After all, the big social network, which is reportedly in negotiations with all sorts of entertainment companies to integrate their services, may have designs on becoming for real what the Cisco product was only in name: a social entertainment operating system for consumers.
I’ve long recommended SwiftKey as a third-party keyboard for Android smartphones, and many others agree. According to the Android Market, the paid version has enjoyed between 100,000 and 500,000 installs, while the free version has seen between a half-million and a million downloads.






These days, it seems like there’s a new incubator for just about every pair of 19-year-olds working on a mobile-payment startup.



Google announced Thursday it will shut down its Translate API entirely later this year, “due to the substantial economic burden caused by extensive abuse.”
Kayak kicked off 2011 with major sales growth in the run-up to its planned initial public offering, according to an update to its IPO filing with the Securities and Exchange Commission made Friday.
Six months after debuting a handset with mobile payment capabilities, Google this week launched it’s Google Wallet service with Sprint as its carrier parter. The operator’s Nexus S handset, with integrated near-field communications (NFC) chip can be used for wireless purchases at MasterCard PayPass terminals, initially in New York City and San Francisco. Consumers with the Nexus S and a Google Wallet account can pay for goods or services simply by entering a PIN on their phone and tapping or waving it near the wireless terminal at check-out.