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Google Play continues its furious bid to catch up with iOS

Published Aug 12th, 2013 4:10PM EDT
Google Play Revenue Growth Analysis

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According to new July figures from app analytics firm Distimo, Google Play’s app revenue has now increased by an impressive 67% since the start of the year. This includes a torrid 11% month-over-month app revenue growth during July alone. In comparison, the iOS platform’s app revenue has grown by just 15% so far this year and by 3% during July. One sign of Google Play’s emerging powerhouse status is that the combined app revenue generated by Japan and South Korea now matches that of the United States. The sudden Android app revenue growth spike of the past 12 months has turned Asia’s two leading countries into globally significant app markets.

Finland’s Supercell remains the world’s top iOS app revenue generator: Its Clash of Clans is the second most lucrative app on the iOS platform while Hay Day has moved up to the No. 3 position. At the moment, Candy Crush Saga by the British vendor King remains the most lucrative iOS app in the world. However, that may change as soon as August, thanks to Supercell’s recent burst of sales gains in Japan, South Korea and China.

Japan’s GungHo has suffered a steep share price slide in Tokyo as markets have started doubting its international cross-over appeal. In July, the flagship game Puzzle & Dragons slipped to No. 4 on the global iOS revenue chart, losing out to Hay Day, which is Supercell’s a one-year-old Farmville knock-off. At the moment, European app vendors hold the top three positions in the global iOS app revenue chart.

One of the mysteries of the app industry remains the question of why American vendors seem incapable of challenging Euro champions like Supercell or King. For the time being, Kabam and Electronic Arts remain distant challengers.

After launching mobile game company SpringToys tragically early in 2000, Tero Kuittinen spent eight years doing equity research at firms including Alliance Capital and Opstock. He is currently an analyst and VP of North American sales at mobile diagnostics and expense management Alekstra, and has contributed to, Forbes and Business 2.0 Magazine in addition to BGR.