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Study: Amazon Trouncing Google in Android App Revenue

by Raider Duck    Mar 30, 2012, 6:48 PM

http://www.pcmag.com/article2/0,2817,2402443,00.asp »

Amazon's decision to pursue its own app store appears to be paying off, according to Friday data from analysis firm Flurry.

Flurry examined a "basket of top apps" that were released for Apple's iOS, the Android Market/Play Store, and Amazon's own Appstore. The firm found that for every dollar spent on the iOS version of the app, 89 cents were spent on the app within the Amazon Appstore, but just 23 cents was spent on the Google Play version of the app.

In total, the apps covered 11 million daily active users, Flurry said. The study covered 45 days over January and February of this year.

Flurry found that its data held steady versus a similar study it conducted last year, when Android Market apps as a whole generated 24 cents for every dollar the same app made for Apple.

"Amazon's bet to fork Android in order to put consumers into their own shopping experience on Kindle Fire appears to be paying off," Flurry said in a blog post. "Showing its commerce strength, Amazon already delivers more than three times the revenue in its app store compared to what Google generates for developers."

Most analyst firms expect Apple's App Store to continue to generate the most app store revenue this year. In January, for example, Strategy Analytics predicted that Apple would earn 53 percent of all paid smartphone and tablet app download revenue this year. The competing Android app stores, Amazon, and Barnes & Noble are expected to fight Microsoft for third place. In December, Distimo said that Apple's App Store for iPhone generates four times as much revenue than the Google Android Market.

Flurry concluded that the decision to fork Android was a profitable lesson that could be imitated by a company like Samsung. In part, that's because Amazon and Apple's core business is selling products to the consumer, while Google's strength is in search.

"For some possible insight, let's consider the DNA of each company. Apple runs the highest revenue-per-square foot generating retail store on the planet as well as the successful iTunes store," it said. "Amazon, who invented the one-click purchase, perfected online shopping with data, efficiency and customer service. Google's strength is in scalable online search engine and advertising technology. Running a store, retail or digital, has not been Google's traditional core competency."

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