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Android has a bigger market share than iOS, so a bigger pool of potential users should mean that Android apps drive more revenue, right? Not necessarily. For example, at the LeWeb conference earlier this year, Evernote CEO Phil Libin said that his app’s average revenue per user (ARPU) for Android is $1.06 versus $1.79 for the iPhone and $2.01 for BlackBerry. Its iPad ARPU, meanwhile, is $2.18.
Why such big differences by OS and form factor? To find out, we asked Ken Gullicksen, Evernote’s vice president of corporate development. One takeaway echoes our Q&A with FourBros Studios earlier this year regarding Windows Phone: When developers fixate on OS market shares, they risk overlooking nuances that point to revenue opportunities.
Why do Evernote’s Android users have lower ARPU?
Ken Gullicksen: There are three factors that probably account for the higher monetization we see from iPhone users versus Android users. The first is that on average our iPhone users have been using Evernote longer, and the longer you use Evernote, the more likely you are to pay. The second is that iPhone users are somewhat wealthier on average than Android users. The third is that iPhone is still a little ahead of Android in the efficiency of its payment mechanism.