- Horace Dediu always believed that iPhone users brought much more profit than others
- Basically it was just a simple hypothesis based on testimonies
- Official data finally confirmed his statements
Obviously, when you read “worth more”, we are not talking about moral values or human qualities, but only about profit. And for good reason, an analysis recently revealed that iPhone users spent on average seven times more than Android users.
This figure comes from Horace Dediu, a famous analyst known for the precision of his work related to the apple company. This also fits with the idea that Apple’s strategy does not aim to sell much more (even if that remains an objective), but above all more expensive.
A simple hypothesis that becomes a rule of thumb
To draw this conclusion, Horace based himself on real data. But it turns out that at the time, the latter had already hypothesized that iOS users would bring in much more than those of Google’s OS. To affirm this, he relied on anecdotes heard from developers more than 10 years ago.
They designed applications for the two main stores, namely the App Store and the Google Play Store. They were therefore able to benefit from an overview of the use of their apps. And by analyzing the revenue generated based on the devices used, they noticed that despite twice the number, Android users did not bring in more. On the contrary, by being half as many, the people on iPhone brought developers four times more profits.
The phenomenon was so remarkable and verifiable among many developers, that the analyst established an empirical rule at the time: half of iPhone users pay 4 times more than Android users.
Data supports hypothesis
This empirical rule has been verified over the years thanks to the availability of various data concerning the use of applications. The most surprising thing about all this is that the developers’ estimates were lower compared to the actual data.
Indeed, in 2022, there were 2.5 billion active Android users, compared to 650 million for the Apple smartphone. Using these numbers, and also the revenue generated by both stores, Horace was able to calculate how much each user contributed to both companies.
The result is clear, an Android user would generate on average a monthly income of $1.40 for Google. Unlike Apple which receives on average $10.40 per user.
We wonder if sideloading will have an impact on these figures.
By: Keleops AG