ABI forecast: Android app revenues set to double to $6.8B in 2013


Revenues generated by mobile applications running Google's (NASDAQ:GOOG) Android operating system are on pace to reach almost $6.8 billion by the end of 2013, nearly doubling from the previous year, market intelligence firm ABI Research forecasts.

ABI cites Android's market share dominance as a catalyst behind the growth of its app ecosystem: Researcher Gartner recently reported that the Google OS powered 79 percent of smartphones sold during the second quarter. Other factors driving Android software revenue growth include app advertising efforts galvanized by Google's analytics search engine and carrier billing support.

Although revenues derived from apps written for Apple's (NASDAQ:AAPL) iOS will continue to outstrip those from Android, ABI anticipates Android revenues will increase from 59.1 percent to 65.9 percent compared to iOS over the next 12 months. "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," said ABI Senior Analyst Josh Flood. "This year, Android smartphones will ship by a factor of more than three-to-one to iPhones." 

Google Play storefront app revenues surged 67 percent during the previous six months, far ahead of Apple's (NASDAQ:AAPL) App Store at 15 percent, analytics firm Distimo reported earlier this month. "The Apple App Store was still the larger market compared to Google Play in July 2013 in terms of total revenue. However, Google Play's cut has increased significantly over the past few months," Distimo said. "While only 25 percent of the combined revenue came from Google Play in February 2013, this share went up by 8 percentage points to 33 percent in July 2013. In revenue terms the Apple App Store was still twice as large as Google Play."

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