Android Revenues to Reach $6.8 Billion by End of 2013

Several pundits are predicting world domination for Android operating systems within the next five years and a release issued yesterday is helping their case.

According to UK-based ABI Research, Android mobile app revenues will reach $6.8 billion by the end of this year, but that’s still only 59% of iOS app revenues. Still though, it’s higher than two years ago and that number is slated to rise even more. In fact, after 12 months Android revenues should jump to nearly 66% of iOS revenues.

“Apple’s iOS still leads all the other mobile operating systems’ revenues by a significant margin; however, the greater number of Android smartphones in use is clawing back Apple’s lead in this market,” says ABI’s Josh Flood. “This year, Android smartphones will ship by a factor of more than three-to-one to iPhones.”

Key to Android’s growing success is it’s advertising. The operating system’s digital advertisements are based off of Google’s powerful analytics search engine and experience, giving it a “big edge” over Apple.

“Google has been incredibly successful at mastering targeted online advertising,” reads the report. “Additionally, Android’s willingness to incorporate carrier billing for its app purchases could prove to be a very decisive factor against iOS in-house payments. App purchases through mobile carriers have recorded significantly higher successful completions when compared to paying by credit or debit cards.”

This has been particularly successful in areas of the world where low-cost, half-strength phones are skyrocketing in sales, in Latin America and Asia-Pacific.

The tablet market has already proven to be receptive for Android users, as Techvibes reported a month ago that data suggested that Android controlled a 67% global share while iOS dropped to 28%. Global Tablet shipments reached 51.7 million units during the second quarter while several trends indicated positive futures for both the Android market and tablets.

“Android is now making steady progress due to hardware partners like Samsung, Amazon, Google and White-Box tablets which, despite the fact that branded OEMs are lowering price-points and putting pressure on the White-Box manufacturers, are still performing well,” said Strategy Analytics’ Peter King. “Apple iOS shipments were 14.6 million iPads in Q2 2013, which declined 14% annually. In the same quarter a year ago the first Retina display iPads were launched, which could partly explain the decline, as there were no new models in this quarter.”

Also of interesting note one month ago was leaks confirming that BlackBerry’s BBM messaging service will be coming to both Android and iOS this summer. The free messaging app, which currently has 60 million active users on the BlackBerry platform, sees more than 10 billion messages sent daily, according to the Waterloo-based company.