Android downloads outstripped iOS in Q2, generating higher revenue

According to the "Market Index" report for the second quarter of 2015 released by App Annie, although Google Play's global app downloads in the second quarter were ahead of Apple, Apple's App Store's revenue was still much higher than Google Play's.

The report also shows that the prosperity of the application economy in Taiwan is almost entirely driven by games. In mainland China, the revenue of streaming video applications showed a significant increase in the second quarter. App Annie has published these data in a blog.

Google Play vs. Apple App Store

In the second quarter, Google Play's global app downloads were about 85% higher than Apple's App Store, a significant increase from 70% in the first quarter. Despite this, the revenue generated by the App Store still far exceeds that of Google Play.

The report believes that the growth in Google Play app downloads is mainly due to the increase in smartphone ownership in emerging markets. At the same time, the strong performance of the Chinese market is an important reason why App Store revenue is ahead of Google Play.

Due to the popularity of cheap Android phones, countries such as Brazil, India, Vietnam and the Philippines have seen a significant increase in smartphone ownership. However, App Annie pointed out that in many of these countries, smartphone users still account for less than 30% of the population. This is good news for the long-term growth of Google Play.

On the other hand, according to App Annie data, App Store's global revenue in the second quarter was about 70% higher than Google Play, which was the same as in the first quarter.

This is not surprising. App Annie previously released a report titled "China's iOS Downloads Lead the US". The report predicted that strong iOS app downloads in the first quarter of the Chinese market will drive Apple's future revenue growth. Indeed, the Chinese market set a record for the month-on-month growth in revenue share in the second quarter.

Gaming drives revenue growth

Germany is a traditional market for Google Play. Although Google Play's revenue in Germany increased year-on-year in the second quarter, Google Play's revenue in Taiwan has surpassed that in Germany.

The strong performance in Taiwan came almost entirely from games, especially role-playing games and multiplayer online role-playing games (MMORPGs).

App Annie said core gaming products "will continue to drive growth in the Taiwan market in the coming quarters."

Strong streaming video applications

As cord-cutting continues to grow, streaming apps are benefiting from the trend. According to App Annie, streaming video apps had a "fantastic" quarter, and entertainment apps became one of the top five app categories in terms of revenue on iOS.

In the United States, HBO Now and Hulu led revenue growth, with the former launching an Android app in July. In addition, Showtime has also launched streaming video services on platforms such as iOS, Apple TV and Roku, which may continue to promote the development of "cord-cutting".

Revenue from streaming video apps in China also saw “explosive” growth in the second quarter, especially Youku, iQiyi, and Tencent Video. With a wide range of content, these three services improved the ranking of monthly active users of iOS entertainment apps in the second quarter of the Chinese market.

In addition to user-submitted videos, regional and international movies, regional and international television shows, and original programming, these services also offer live sports events from well-known sports leagues such as the NBA.

While growth in China was expected, App Annie still called the growth figures “huge” and believes that the growth trend will continue, especially considering Alibaba’s upcoming launch of its subscription-based streaming service, Tmall Box Office (TBO).

According to the App Annie report: “China’s streaming video apps appear set to accelerate the cord-cutting trend. With smartphones and tablets quickly becoming the primary content consumption devices for younger demographics, these services could foster an entire generation of cord-cutters.”