Google Inc (GOOG): 98% of Google Play Revenue came from freemium apps in May

Posted Jun 27, 2014

Over 1.5 million apps are now available for download on Google Play, the online content store run by Google Inc (NASDAQ:GOOG). However, the main source of revenue on Google Play is not from apps that you pay for upfront.


App Annie, an app analytics company, has released a report this week that shows that 98% of the platform’s income in May was from freemium apps. The report showed that only about half of the downloads in May were freemium apps. The other half were just free apps. The reason for the spike in freemium revenue was not explained. 

Many of the freemium apps are gaming models, which require users to buy higher levels or virtual goods. In Q1 of this year, 90% of revenue came from games. The average Google Play app earns $1,125 in profit. The average app on the Apple App Store brings in around $4,000 as a comparison. And the average app on the Windows Phone Store brings in $625.