November 27, 2013, 12:59 PM — iOS Beats Android in App Developer Revenue
There's been a ridiculous emphasis in the media on the market share of Android versus that of iOS. But market share is a very misleading metric. Profit share and revenue are what really matter. And, according to Apple Insider, iOS is beating Android handily when it comes to generating revenue for developers.
For every $1.00 in app download revenue earned by iOS developers, their Android counterparts earn just $0.19, according to data compiled by Business Insider. The gap for up-front and in-app purchases is slightly narrower, with Android bringing in $0.43 for every $1.00 on iOS, while advertising revenue is the closest at $0.77 on the dollar.
Last month, a report from major Facebook advertising firm Nanigans said that ads on Apple's platform posted returns nearly 1,800 percent higher than the same ad running on Android. In fact, putting money into Android netted advertisers a negative return on investment, to the tune of a 10 percent loss.
Between the app developer revenue and the ad revenue difference, it's amazing to me that so many developers and advertisers stick with Android. The fragmentation of Android has to be a real pain in the neck for developers, and it must increase development costs to one level or another for each app to run properly across various versions of Android.
Apple and Innovation
Macworld has an interesting article about Apple and innovation.
If you’re the kind of person who frequently peruses publications of a technical nature, you’ve undoubtedly seen the headlines: “Apple no longer innovates!” And although I know that these headlines and accompanying stories are generated largely to raise dander and attract clicks, I must agree with their main thrust. Currently, Apple isn’t innovating.
Whoa, whoa, hang on there, Reader With Angry Fingers Poised Over Keyboard. Before you dash off the kind of note that you’ll later regret, let me finish. I agree that Apple’s latest work is not innovative. But here’s the important postscript.
Whose work is?
Macworld rightly points that there have been lulls between truly innovate product releases from Apple. Apple first released the iPod, then the iPhone, and then the iPad. These things did not all happen in the same year. It took a certain amount of time between each product before the next one was released.
I think the real problem is that people expect far too much from Apple. It takes a long time to get a product right, and Apple will not release something that they think is sub par and that doesn't add real value to that product category.
Of course no matter what Apple releases next year, we'll still see the "they aren't innovating" stories in the media because they do grab the attention of readers, and thus generate ad revenue by getting people to click through to the article.
The Real Reason Apple Bought PrimeSense
Jessica Lessin, a former Wall Street Journal reporter, has some interesting speculation about the real reason Apple bought PrimeSense.
But PrimeSense’s technology is much more strategic for mapping, according to one person familiar with the company. In fact, companies like Matterport, which makes a camera for mapping three-dimensional spaces, use its chips.
We know Apple cares about mapping. The company bought WifiSLAM, an indoor GPS company, to help it map out malls and another indoor spaces in a race against Google, which is doing the same. Sooner rather than later, our phones will pull up scans of real spaces we want to visit or may be approaching. Those two-dimensional maps will seem very obsolete.
Hat Tip: CNet
This makes more sense to me than most of the other stuff I've read about this purchase. Apple has gotten very serious indeed about its Maps product, and this purchase seems to fit right into making Maps a very big priority. Google Maps had better watch out.
What's your take on all this? Tell me in the comments below.