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04/04/2012 by
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The App Battle: Apple vs Amazon vs Google

The undisputed heavyweight world champion in App generated revenue was Apple iTunes for many years. But the App battle now shows two other strong players: Google Play and the Amazon App store. Who might win this battle and why?

Revenue from Amazon’s App store is now 89% of iTunes App Store revenue, according to mobile analytics company Flurry, while revenue from Google’s App business – recently re-branded to Google Play – is now 23% of the iTunes App Store revenue…

In an effort to compare the ability of App developers to generate revenue across the major App stores, Flurry examined a basket of top-ranked Apps, each with a similar presence across iOS, Amazon and Android.

“Their primary business models are “in-app” purchases, which is the revenue type we compared for this analysis,” according to Peter Farago, vice president of marketing at Flurry.

Another way to interpret the results is that for every $1.00 an App generates in the iTunes App store, it generates $0.89 in the Amazon Appstore, and $0.23 in Google Play.

When Amazon debuted its Android-based App store in 2011, analysts questioned whether the company could break into the business.

Amazon CEO Jeff Bezos holds up the Kindle Fire

But you might have seen my former article about analysts and Amazon? Indeed, analysts have been wrong about Amazon’s strategic approach many times over the last two decades.

Amazon, now boasts over 31,000 Apps in its store, while more developers are signing the company’s praises. Game maker Glu Mobile, for one, reported that its revenues from the Amazon Appstore increased 1000% four months after Amazon debuted it Kindle Fire tablet.

Looking at Amazon’s customer base (281 million users in 2011) and its incredible CRM and Commerce power, Amazon might be too strong for Google Play. And it might even be smarter in distribution than Apple.

Earlier this month, Apple crossed a record 25 billion downloads from more than 550,000 available Apps, while Google announced December 2011 that it had crossed 10 billion downloads from 400,000 available Apps.

It looks like Apple will be keep its belt in 2012. But what will happen in the next few years?

We’d love to hear your thoughts, so please place your bets in the comments below…

More trends? Follow Igor Beuker on Twitter.

Source: MediaPost