A recent study found that iPhone users spend seven times more on apps than Android users. This contrasts with previous thinking that the spending gap is four times his. Increased legal requirements for data transparency have created a significant difference in user value between spending habits on the two mobile platforms.
observations of the past
Asymco’s Horace Dediu recalls a conversation with a developer who designed an app for both iOS and Android. These developers noted that the iPhone App Store revenue is twice as high as the Google Play Store’s, even though Android’s user base is twice as large as his. From this information, Dediu calculated that iPhone users are worth about four times as much as his Android users.
Dediu now uses more comprehensive data to provide a clearer view. Apple boasts 650 million active App Store users, while Google claims he has 2.5 billion. This shows that the global user ratio favors Android four times as much as he does. However, Apple’s and Google’s revenue ratios are consistent. For example, in 2016 the ratio was 29:15 (1.93), but in 2022 it was 81:42 (1.93).
Dediu evaluated monthly app revenue per user for each platform and found that iPhone users spent an average of $10.40, while Android users spent about $1.40. Dediu said: “7.4 times more iPhone users” Better value than Android counterparts.
customer value @asymco “iPhone customers are 7.4 times more valuable than Android customers” // Super important math and classic Horace post. https://t.co/Bjg4FqaYkF
— Stephen Sinofsky (@stevesi) September 5, 2023
for the future
Dediu touched on the potential of the Vision Pro app, suggesting a 10x increase in revenue. He expects to move from spending $10 a month on his current handheld device to perhaps $100 a month for an immersive 360-degree 3D experience. Dediu attributes Apple’s success to its ability to attract customers who want to spend more money on apps.
At its annual WWDC event, Apple announced that it will release its expensive Vision Pro mixed reality headset next year. CEO Tim Cook emphasized the dawn of the “spatial computing era.” Vision Pro has 5 sensors, 12 cameras, and a proprietary chip developed by Apple. Following Apple’s announcement, Samsung and Google adjusted their release schedules and shifted their development strategies to high-end products.
In his Asymco article, Dediu emphasized the importance of accurately identifying customers. He observed that Apple not only expanded its user base, but effectively tapped it. “Top Billion Customers”.