2019. március 28., csütörtök

Will Android Revenues Beat iOS?


I was once a self-proclaimed Android evangelist, and Apple hater. I thought Apple products were for the elderly and technically challenged. I was younger and didn't have much Apple experience when I had these thoughts. My viewpoint was unchanged until the day I started my new job as a Game & Monetization Consultant here at NativeX where I help improve behavioral and monetization metrics in mobile games. I needed a computer, iOS and Android device. At the time I had a Samsung Epic 4G as a phone so my Android device was covered but then they handed me a MacBook Pro and iPad. Most would be thrilled, and I was excited about the new tech but I was also a little apprehensive. Fast forward 2 years and I've switched to an iPhone and use my MacBook way more than any PC. I could tell you all the reasons why but the PC vs. Mac is best saved for another article.

I haven't become an Apple fan boy (I always claim no allegiance to any platform) but there are 3 main reasons why I've made the switch to an iPhone.
  1. Ease of use - after having a couple of kids I need more things to be easier in my life, and features work better with iOS or at least did at the time.
  2. Career - since I'm in the mobile industry, I need to be on what's considered "the main platform" since most lead development on iOS and port to Android (emphasis on most).
  3. I'm a gamer - and there's no arguing that games are generally better on iOS (most important reason to switch). 
This is where I'm supposed to show you charts on the Android growth and how it's increasing. Maybe a chart like this would paint enough of a picture...
source: http://www.idc.com/getdoc.jsp?containerId=prUS24257413

When you see charts like this is hard to deny the thought that Android will someday be the top revenue generator in the mobile space. Then you see charts like this that show you how drastic the revenue difference is!

source: http://blog.appannie.com/app-annie-index-market-q2-2013/

How can a platform dominate the market share but at the same time be so behind on the revenue? Let's see if we can figure that out and maybe understand what OS will be on top.

Fragmentation


We all knew this was going to be one of the issues, but I feel like this is possibly the largest problem with Android. Which fragmentation; hardware or software? Both! I'm a visual person and this visualization of the fragmentation of Android really makes it clear how big of a problem this is.

source: http://opensignal.com/reports/fragmentation-2013/

Device fragmentation is a big problem for developers, but OS fragmentation is even worse for Google. It's hard to dictate how and what consumers are doing when you don't control the OS that they're on. Google Play (Google's App Store) doesn't even come standard on all devices. Let's take a look at some of the areas where Google needs to improve in order to come out on top.

Regions


There are indications that Android has peaked in the United States. This is arguably one of the important territories for revenues right now. Certainly this could change, but I don't see the US dropping out of the top 5 territories for revenue. If Android wants to beat iOS then they need to make sure they're getting their high-end phones into the higher revenue territories. I know there's the argument that in low end markets Android is definitely winning. However, if you're selling phones to people with limited entertainment budgets they likely won't be making IAPs or purchasing games.

On the flip side, if iOS wants to remain on top they need to have cheaper hardware and I don't think the 5C is the answer. They sell really expensive products and this is only going to be half as expensive. What's half of really expensive? Still too much. I know there are some real monetary values and examples out there, but I'm being vague in the pricing to prove the point that this device will still be too expensive. At the end of the day Apple is a hardware manufacture and I'm sure stakeholders would like to see Apple at least make an attempt to gain more worldwide market share.

Unified Billing System


How do you buy apps in Google Play? Is there another app for that? Does it vary depending on the version of OS? Per region? Do players need to setup an account? What does the process look like? In the United States Google is trying a new billing system called Google Wallet. Maybe it's not the magical solution, but from my experience it's much better than nothing (I owned a Samsung Galaxy without Google Wallet and have a Nexus 7 with Google Wallet). Once I setup my Google Wallet account on my Nexus 7 purchasing apps was very similar to iOS. Ask all those same questions again about iOS and you'll find that it's the same for everyone.

Make CC Gathering a Step in Activating a Device


When you setup your iOS device they ask you for your Apple ID much like how Google asks for your Google account/email. The next thing iOS does is they ask you to verify your billing information. Users can skip this process, but the point is it's part of the setup process. This is crucial for 2 main reasons.

  1. Mental State - users are in a totally different mental state when they're setting up their phone versus when they're playing a game or browsing a virtual store. When they're setting up their phone they are in administrative mode. This isn't a fun task and users know it. When they're in an app or browsing a store users are looking to be or are being entertained and entering credit card information seems like a much larger task.
  2. Allows Impulse Buys - a good portion of app purchases are on impulse. If there's an inconvenience to the purchase process it will be likely be abandoned. This would be like locking up the gum or candy at the checkout register at your local retailer. Who in their right mind is going to track down a manager to unlock a display case for some 99 cent gum? Forget that!


Trust Issues


Internet fraud has made a good portion of consumers leery on who they can trust with their money. I've talked to many iOS and Android users and I've gotten pretty consistent answers. People have more trust in Apple or iOS than Google or Android. I believe there are a few things affecting people's trust...

  1. Android is Open Source - this makes tinkering/hacking the OS or how apps interact with the OS pretty simple or even encourages it. There's already spammy or malicious apps out there and the problem will only get worse. It'll be like the virus debate with Macs and PCs all over again. 
  2. Google Doesn't Control Updates - so what if there's an insecurity? How do you get updates? Will you need them? I know iOS has had security breaches, but historically they've been fairly quick to release updates to fix them.


Once you breakdown the flaws of Android it's easy to understand why the majority of revenues are still on iOS. However, Apple can be defeated. No one company can stay on top without innovation and perhaps this is what Microsoft is aiming to do with the purchase of Nokia. It appears they've seen the consequences of an open OS/platform and their acquisition of Nokia tells me that they too believe a closed environment is a better environment/investment for the future. Perhaps my next phone may be Windows phone if they keep making commercials like this. Android has a chance with just the sheer amount of devices that are using their OS. Gathering credit card information during setup could maybe do it alone, but if they can fix some of the payment issues and device support through updates then Apple is going to have a hard time fighting off the numbers.

If you need help designing or fixing your F2P game you can find me here at my blog or on Twitter.