When diving into app development, understanding the true value of a customer is crucial. I recently stumbled upon Horace Dediu’s insightful article on Asymco (you can read the full article at the end of this post), which breaks down why focusing on customer quality rather than sheer numbers can drastically shape business strategies, particularly when comparing iOS and Android users.
Looking Back
About ten years ago, developers noticed a big difference in revenue between iOS and Android. Even though Android had more users, revenue from iPhone apps was nearly double. This led to a handy rule: an iPhone user is roughly four times more valuable than an Android user. This observation opened up a deeper dive into how market changes affect user value. For more insights, check out the article on iPhone users spend seven times more on apps than Android users from 9to5mac.com.
The Economics of Users
As data analysis has advanced, Dediu points out that not all users spend the same. A small percentage of users account for most of the revenue. This means companies should focus more on customer quality—how wealthy and engaged their users are—rather than just increasing user numbers. According to Statista’s study on app availability and spending, high-income individuals tend to spend more on apps, backing up Dediu’s point.
Current Stats
Updated stats continue to support Dediu’s findings. As of 2025, Apple reports 700 million active App Store users, while Google boasts 2.8 billion on the Play Store. Yet, Apple’s revenue is still about double. In 2024, Apple’s App Store generated approximately $134 billion compared to Google Play’s $63 billion, showing that even with fewer users, Apple users spend more. Data.ai’s analysis of App Store vs. Google Play in 2025 confirms this trend.
Income and Platform Choice
Dediu then highlights the link between wealth and platform preference. Wealthier individuals are more likely to choose iOS. In the U.S., there are 180 million iPhone users versus 150 million Android users, with iPhone users generally having higher incomes. Research from Pew Research Center on Americans’ Views of iPhone and Android Users supports this, showing income influences platform choice.
Quality Wins
Dediu’s analysis teaches us that knowing your customers and their spending potential is more important than just increasing user numbers. As app development evolves, focusing on customer quality can lead to stronger, more profitable strategies.
In short, “The Value of a Customer” offers valuable insights into app economics, encouraging developers and marketers to understand their customers’ spending habits for long-term success.
For more details, read Horace Dediu’s full article on The Value of a Customer on Asymco below.