Feb 21

Posted by Jeremy Toeman and Greg Franzese

Posted in Apps, Products, Stage Two

Android Market Grew 861% But App Store Grew ONE BILLION DOLLARS. FTW.

Phandroid is reporting that the Google Android Market grew 861% last year – and calls that feat “remarkable.”

A million dollars isn't cool. You know what's cool? A billion dollars.

While it is true that Google Android Market moved from $11 million in revenue in 2009 to $102 million in 2010, the real story is Apple’s growth in the mobile application space. Quoting from Know Your Mobile:

It will come as no surprise to hear Apple dominates the world of apps, not just in terms of support but also in revenue. $1.7 billion dollars were generated in 2010, and the App Store now accounts for 82.7 per cent of the market.

While Apple technically lost market share in 2010, it also increased sales by a billion dollars. Apple’s dominant market position is one of the reasons the company is implementing a new subscription fee structure for applications (and angering some mobile app developers in the process).

As I wrote in 2009, clumsy usability and a “free” app culture hinder any sustained growth for Android applications.

With the fracturing of Android as a platform, not all apps are even guaranteed to run on a given phone! It’s as if the entire experience was “in beta”, only nobody’s overseeing the process.

Android will likely continue to grow in the coming year as the platform matures. But that growth must be observed in light of Apple’s strong presence in the mobile application field.

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