Apple's App Store Still Makes More Money Than Google Play

Google's Android powers 86% of smartphones worldwide, according to IDC, while Apple's (NASDAQ:AAPL) iOS controls the remaining 14%. Therefore, it wasn't surprising when Sensor Tower reported that the Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) subsidiary's Google Play store logged 20.7 billion downloads in the first quarter of 2019, versus 7.4 billion downloads for Apple's App Store. But there's a twist: The App Store generated significantly more revenue than Google Play, despite having fewer users.

This trend isn't new. Last year, App Annie reported that Android users accounted for 70% of all app downloads in 2017 but just 34% of app consumer spending. Apple users accounted for 30% of downloads but 66% of spending.

Analysts attribute the split to several factors: iPhone users are generally more affluent than Android users, so they buy more apps; many Android users in developing countries lack credit cards; and the Android ecosystem is fragmented, with older hardware that can't run newer apps.

Google and Apple both retain a 15%-30% cut of their app store sales. Since Apple's platform offers easier monetization than Google's, developers may prefer to launch their apps on iOS before Android -- which would give Apple an edge against Google.

This article originally appeared in the Motley Fool.

Leo Sun owns shares of Apple. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.