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January 15, 2014

The Android Paradox. Head to Head with iOS, Android Owns 80% of the Mobile Market But Has Only 20% of Consumer Transactions and Sales.

Apple vs. Android

We called it “The Android Paradox.” It could’ve been called “The iOS Paradox.”

According to Alisdair Faulkner, chief products officer, ThreatMetrix, approximately 80% of all smartphone users are Android owners. But on Black Monday, ThreatMetrix’s figures collected from its ThreatMetrix™ Global Trust Intelligence Network showed that Apple did approximately 80-82% of consumer transactions as opposed to Google Android which did 17-19%.

In a recent story on businessinsider.com, Jim Edwards notes, “Apple users on iPhone and iPad accounted for five times what Google’s Android users did when it comes to online shopping.

“Google’s mobile users outnumber Apple’s all over the place, but Apple users are the ones spending all the money. iOS users spent $93.94 per order, nearly twice that of Android users, who spent just $48.10.”

The question is WHY and which mobile platform should etailer’s prioritize, iOS or Android?

Simon Khalaf, CEO of Flurry, a mobile ad company, told Edwards he thought users considered Androids dumbphone replacements and only used them for calling, texting and playing Bejeweled. A phone used for calling. What will they think of next?

According to reports Edwards has seen, “an Android user is worth 1/4 of an iOS user, but that is based on virtual goods sales (mainly games). [Data from IBM] seems to suggest that this is almost the same ratio for sales of physical goods (m-commerce).” Hmmm. What if Android users checked out products online and went into a brick-and-mortar store to make a purchase?

In Edwards’ view, “Android users just aren’t lucrative users for app developers, and app developers want to be in a media/commerce-rich environment, which right now is iPhone.” In tennis jargon, that would be advantage iPhone. However, Edwards also points out that Google’s 80% of the market is underdeveloped which means there’s more opportunity down the road.

ThreatMetrix secures Web transactions against account takeoverpayment fraudidentity spoofing, malware, and data breaches. The ThreatMetrix Global Trust Intelligence Network, which analyzes 500 million monthly transactions, provides context-based authentication and Web fraud prevention to help companies accelerate revenue, reduce costs and eliminate friction. ThreatMetrix protects more than 1,900 customers and 9,000 websites across a variety of industries, including financial servicesenterprisee-commerce, payments, social networks, government, and insurance. For more information, visit www.threatmetrix.com or call 1-408-200-5755.

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