Android has reportedly overtaken iOS to claim the lion's share of mobile application downloads for the first time.
According to market intelligence agency ABI Research, Android has 44% of the app download market share, while Apple's iOS has 31%. ABI, however, notes that iOS still leads in per-person downloads.
ABI analysts say quarterly shipment growth figures explain Android's dominance in the mobile application space. Apple's iPhone shipments slowed in the last quarter, as consumers waited for the much-hyped next-generation iPhone release.
“Android's install base now exceeds iOS by a factor of 2.4-to-1 worldwide; by 2016, this factor will grow to 3-to-1,” says ABI Research.
ABI research associate Lim Shiyang attributes Android's success to its open source strategy.
“Being a free platform has expanded the Android device install base, which, in turn, has driven growth in the number of third-party multi-platform and mobile operator app stores,” says Lim.
“These conditions alone explain why Android is the new leader in the mobile application market.”
Apple edge
ABI's practice director for mobile services, Dan Shey, says Android is still lagging behind Apple in downloads per user.
“Apple's superior monetisation policies attracted good developers within its ranks, thus creating a better catalogue of apps and customer experience,” says Shey.
A report published last month by Yankee Group analyst Carl Howe noted that Android developers make much less money from paid apps than iPhone developers do.
“Recent data from a survey of 75 developers suggests that rampant piracy of Android apps may be the primary culprit,” said Howe.
“While better anti-piracy mechanisms from Google may help, Android developers should consider adopting business models beyond direct app sales.”
Piracy problem
According to the report, 27% of Android developers included in the survey regarded piracy as a major problem, with 26% seeing it as “somewhat of a problem”. Fifty-three percent of respondents also said Google is too lax in its Android Market policies.
“Piracy hurts developers' top and bottom lines. About a third of developers say piracy has cost them in excess of $10 000 in revenue,” noted Howe.
“Android apps are living in the Wild West without a sheriff. With five other major mobile OSs competing for consumer dollars, Google can't afford to simply let pirates kill app developers' businesses,” writes Howe.
“They need to foster some law and order, or developers will flee to other platforms, and Android will lose customers.”
Growing market
In another report published by Ovum last month, analyst Nick Dillion says the long-term outlook for app stores is positive, with customers expected to continue to use apps and add new features to their phones.
According to Ovum, while Apple can't compete with Android's diversity, the iPhone will continue to dominate the market for paid applications, with app revenue expected to reach $2.86 billion in 2016, compared with $1.5 billion for Android.
Ovum also warned that it is becoming more difficult for developers to create killer apps, as consumers become more selective and discerning.
Analyst Eden Zoller says: “App-savvy consumers are less willing to pay a high premium for anything but 'must have' apps.”
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