Study: Android = Ads. iPhone = Money.
It's not a surprising report, but according to Millennial Media, the iPhone generates 11% more revenue for app developers than Android devices. That number is very likely one of the most important reasons why developers would choose to develop first for the iOS platform. There's a big impediment on Android that doesn't exist when purchasing apps on an Apple device--credit cards.
Apple has a billing relationship with every one of its users and the same cannot be said for Google. Google is trying to change that, and the key to their success will lie with Google Music. If Google can launch a music service that’s compelling and at least on par with iTunes and the music experience of an iPod or a Zune, Android users will be handing over their credit card numbers in droves. And that's exactly what Google wants.
Once they have your credit card attached to your account, buying an app is only a click away. There's no barrier to purchase and app developers will see their revenues increase. Google has already introduced carrier-billing as an option if you're with AT&T or T-Mobile, soon to be AT&T-Mobile, and yesterday announced the addition of Sprint to that mix. But, carrier-billing is not for everyone and having multiple ways to hand over your money easily should help.
Add to that, Google only recently launched in-app billing, and it's no wonder that Apple has held its lead for so long with just one phone model. At least Google can take solace in the fact that they are in the lead in advertising impressions and that Android takes 14 positions of the top 20 smartphones; though number one is still solidly in Apple's hands.