If you wonder why a majority of app developers are willing to target Apple users before Google Android, the data on global app spent in Q3 2020 answers all the questions you may be looking for.
According to the latest report from Sensor Tower, global app spent in Q3 2020 reached $29.3 billion, an increase of 32% YoY as compared to Q3 2019.
This is a commendable performance by all the app developers as they lured mobile app users to spend more in the third quarter as compared to the same duration in the last two years. Between Q3 2018 and Q3 2019, the global mobile spend grew 24% YoY, and considering the world is under arrest of the pandemic since the beginning of 2020, 32% YoY growth in Q3 2020 is indeed a much-needed boost for mobile app industry.
The mobile app ecosystem is dominated by Google-owned Android. Every quarter one-third of the total apps installs takes place on Android-powered devices. However, it’s Apple that is driving the actual growth measured in terms of app spending.
Apple, the world’s most valuable publicly traded tech company, accounted for nearly one-third of the global app spending in Q3 2020. The Sensor Tower report estimates that consumer spent nearly doubled the amount on iOS apps than Android apps.
Consumer spent on Apple apps increased 31% YoY, to $19 billion in Q3 2020. On the other hand, Google Play app spending increased 33.8% YoY to $10.3 billion during the same quarter from $7.7 billion recorded in the year-ago quarter.
When we put all these figures next to the total app installs in Q3 2020, the scenario becomes much more interesting.
In contrast to its huge share of global app spend in the aforementioned quarter, Apple accounted for less than one-third of the total app installs in Q3 2020. Overall, 36.5 billion first time app installs are recorded globally and of those 28.3 billion came from Google Play.
Overall global app installs increased 23.3% YoY in Q3 2020. While Google Play recorded 31% YoY growth, Apple App Store saw just 2.5% growth in the new app installs during the quarter.
It is important to note that in Q3 2020 TikTok emerged as the world’s highest earning non-gaming app in terms of spending across both stores.
The sharp contrast between Apple’s app installs share and Apple app revenue share in Q3 2020 may look surprising but the silver lining is that Apple app users are spending much more than Google app users. And, that’s the reason a majority of developers always want to target iPhone or iPad users before Android users, which makes a perfect business sense as well.
It’s important to note that the Sensor Tower’s global app revenue estimation of Q3 2020 doesn’t include local taxes, in-app user spending on mobile commerce (shopping via Amazon app etc) and in-app advertising.