Mobile gaming and an abundance of free apps have helped the Android Market surpass 250 million downloads according to a report from market research and consulting firm FADE.
FADE claim that an estimated eight million Android users downloaded 289 million apps, of which 98.9% were free to download.
Whilst Android gaming revenue jumped 50% in January and February, a sales total of $900,000, research suggests that many users are not downloading many paid apps compared to other handset markets.
FADE tracked the addition of 1,200 gaming title to the Android Market in the first two months of 2010, highlighting that the average Android user is spending just 6.1 cents on Android games and $0.50 on all other applications. This, when compared with an iPhone users estimated $1 gaming spend and $5 spend on all other apps, accentuates the gulf in revenues between the two smartphone platforms.
The report mentions that the low revenue from the Android Market isn’t down to the quality or depth of the apps, instead focusing on four major factors:
- Payment UI
- Android 1.5 in use on ~ 30% of available handsets
- Limited number of paid countries
- Inability to download applications to SD cards
The future of the Android Market doesn’t look all that bleak. There have been reports that the Open Handset Alliance and handset vendors are to start working with similar firmware updates, minimising the fragmentation of Android users using different software revisions.
As a result, improvements made to the user interface will make it easier for users to make app purchases on their Android handset. With the influx of more powerful handsets and increased marketing, it would be surprising if the Android Market doesn’t begin to monetize more effectively in the near future.
As an Android user I haven't fellt the need for any paid apps so far. I don't play games on my phone and all apps I wanted had a free alternative. There are a lot more free apps on Android Market compared to iPhone apps.
When I used my HTC Hero, I didn't pay for one app. The experience wasn't fluid enough, I would have to create an account elsewhere, then buy my app.
With my iPhone, my account was set up when I registered the phone, you just enter a password and you're off.
On the firmware update:
I was an early-adopter who showed faith in Android and purchased the first device, T-Mobile G1.
There doesn't appear to be any plan to upgrade G1 to Android 2.0, which means that the G1 is falling behind its younger siblings within an year of its release! T-Mo & Goog need to address this, so users will believe that they will not be abandoned.
This might also be a reason to keep it free: http://www.google.com/support/forum/p/Android+M…
Comparing this with the EFF posting with the Apple T&C, those from Apple do look better on this point it seems: http://www.eff.org/deeplinks/2010/03/iphone-dev…
I seriously doubt that paid apps are at such a low percentage overall. I can imagine the skew would be worse versus the iPhone (which is around 30% paid) but there must be some other factor here. IMHO, 1% paid would be very surprising if it turns out to be in the ballpark.
I'd rather Google implement a subscription fee around $3/month to access all paid apps legally including getting the auto-updates. With app makers obviously able to opt-out or provide rebates for subscribers of this plan. App makers I think would be making much more money on getting their share in a global app subscription plan. And I am sure something as little as $3 or $5 per month should be enough to finance the thousands of talented app programmers.
My wife has the Verizon Droid and was able to access the app marketplace without a problem. The experience is very fluid, no need to create an additional account.
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My wife has downloaded tons of apps over the past year… seems like like every week there is another.
I prefer Android apps than iPhone because they are absolutely free. Also, Android keeps on innovating the app world which makes me excited on every app that they launch.