Google Play Store and iTunes App Store celebrate their 10th year anniversary in 2018. In only one decade, these two platforms have grown rapidly, in terms of app store revenue.
Some analysts predict that app store revenue will hit a new record in 2018, and will give a bigger impact on the industry. But, how big is the growth? AppAnnie has the answer to that question.
From the recent report, AppAnnie states that every month roughly there are more than 200,000 apps submitted in total from Google Play Store and iTunes App Store. For example, in October 2017 there are more than 50,000 apps submitted in iTunes, and 150,000 in Google Play Store, including games. As for today, there were more than 2 million apps in iTunes and 3.5 million apps in Google Play Store.
Later in this report, AppAnnie predicts that the revenue from both platforms will increase significantly in 2018 to surpass the US $100 billion. This will set a new record and marks the 30% growth year over year from around the US $80 billions in 2017. The growing of app monetization and the more mature market is the key to this growth.
Games, which currently account for over 80% of total consumer spend in app stores, will continue to account for the majority of spend. And also, the increasing of subscription-based monetization also help non-games apps to grow their revenue. It will reduce the gap between games’ and apps’ revenue in mobile market.
In-App Purchase (IAP) Will Dominate, Thanks to the Improved App Store’s Curation System
If we talk about revenue, we should talk about the store evolution also. One of the big change both for iTunes and Google Play is editorial content and its curation system. Apple completely redesigned its store, and that gives more screen space to apps to show its content. And also, Google improved the Editors’ Choice Section to incorporate Android Excellence Collections.
Both iTunes and Google Play Store also add human element of curation to the mix. This makes both stores show additional details of the apps that might not have seen before. Overall, this will also boost revenues from in-app purchase for free apps and games.
How? By exposing more details of the apps, they are the most likely to be attractive to consumers as they browse. Improved discoverability means more downloads, and will boost in-app purchase revenue in overall.
If we take a look deeper into the new curation and the editorial content, they are now giving more space to showcase quality apps developed by indie developers. For indie devs, more discoverability means more downloads, and it can convert into more in-app purchase and ad revenue also.
Source: AppAnnie. Edited by Devi