UPDATED 05:23 EDT / JULY 17 2015

NEWS

App Store loses to Google Play on downloads, but took home 70% more money in Q2, says App Annie

Published this week, App Annie’s quarterly Market Index for the second quarter (Q2) of 2015 found that Google Play again dominated worldwide app downloads thanks largely to continued growth in smartphone ownership in emerging markets.

Although trailing Google Play in download volume, Apple’s iOS App Store maintained its lead in revenue generated thanks rising demand for iOS apps in China.

Google Play saw 85 percent more downloads worldwide during Q2 that the App Store, up from a 70 percent gap in the first quarter of 2015.

App Annie found that Google Play was able to extend its lead as a result of increasing smartphone ownership in emerging markets led by Brazil, India, Vietnam and the Philippines. These countries, said the report, have seen a recent influx of inexpensive Android devices.

The report predicts that emerging markets will continue to drive download growth for Google Play as smartphone penetration remains below 30 percent.

Maintaining its revenue lead from the first quarter (Q1) of 2015, the App Store’s worldwide revenue in Q2 2015 was 70 percent higher that Google Play’s. In a previous report, China Surges Ahead of the United States in iOS Downloads, App Annie predicted that China’s increasing demand for iOS apps in Q1 2015 would continue into Q2, and that appears to be the case with China accounting for the highest quarterly sequential gain in revenue share in Q2 2015.

While Gaming and Social Media continued to top the charts in both downloads and revenue, video streaming apps delivered the biggest revenue growth for the App Store, driving the Entertainment category to the number four spot by iOS revenue.

In the U.S., HBO Now and Hulu contributed most to the App Store’s revenue. With HBO Now rolling out to Android in July and the recent launch of Showtime’s streaming service on iOS, Apple TV and Roku, streaming apps are likely to continue driving growth for both app stores.

In China – the App Store’s third-largest market by revenue – video streaming apps also saw significant growth in Q2, dominated by Youku, iQIYI and Tencent Video.

Apple is slated to report on its third fiscal quarter earnings (Q2 2015) on July 21 and, although the company does not break out App Store revenue figures, we may glean some info from the earnings call.

Screenshot: Collen Kriel/SiliconANGLE

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