New research by Localytics shows Apple is crushing Android when it comes to app retention - with retention rates on iOS being 52% higher than those on Android.
According to Localytics, overall app retention across the mobile app industry has improved by 19% over the last year. This is said to be due to the shift from an early focus on just downloads, to “more mature customer acquisition and retention models”.
Localytics says it analyses iPhone, iPad, Android, BlackBerry, Windows Phone and HTML 5 apps across 300 million devices.
“For this study, we compared the retention rates of two cohorts: users who first downloaded an app to a new device in Q3 2010 and users who first downloaded in Q3 2011. The retention metrics for each cohort are based on how many times apps were launched on the devices through 15 March of the following year. All results are based on worldwide app usage,” says Localytics.
According to Localytics, research in March 2011 showed 26% of downloaded apps were only used once. Analysing the usage data from customers who first downloaded apps in the third quarter of 2011 (as compared to data from the previous year) one-time usage of apps was down by 15%. Those using an app more than 10 times after download improved by 19%.
“iPhone and iPad users are 52% more loyal to their apps than Android users. A healthy 35% of Apple iOS users launched an app more than 10 times after downloading, compared to 23% of Android users,” says Localytics, adding that there were, however, improvements across both platforms. “The general public surely gained experience over the last year too, and are likely making more informed, discerning choices about what apps to try.”
Quality vs quantity
In May, Nielsen's “State of the Appnation” research showed the average number of apps per smartphone in the US has increased by 28% (from an average of 32 to 41 apps per phone). “Not only is the 2012 smartphone owner downloading more apps, they are increasingly spending more time using them versus using the mobile Web - about 10% more than last year,” says Nielson. The five most popular apps are Facebook, YouTube, Android Market, Google Search and Gmail.
Android overtook iOS in the number of app downloads per platform for the first time towards the end of last year. At the time, ABI Research said Android's install base exceeds iOS by a factor of 2.4-to-1 worldwide.
Android still lags behind Apple in downloads per user and revenue though. “Apple's superior monetisation policies attracted good developers within its ranks, thus creating a better catalogue of apps and customer experience,” said ABI Research's practice director for mobile services, Dan Shey.
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.
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