I'll back up NiKKom with what he's saying about the money aspect.

Android is drowning in a sea of free titles, which is choking off the good paid titles. Throw in the fact that older (1.5) Android phones can't sort paid titles by default, and there isn't a huge amount of money there, yet.

Android is improving, but its no where near the level of iPhone.

It's not just about volume of apps either. There has to be some type of consistency in user experience. I don't know if Google will assert the authority to make sure apps follow consistent user interface guidelines. If too much fragmentation occurs, it will end up like Linux where everything is all wonky. It may be cheaper and more powerful but nobody cares because its hard to use.

Android Market Payouts Total 2% of App Store’s $1B

by John Watkinson on Android / ShareThis

During the WWDC keynote, a landmark statistic was revealed, namely that $1 Billion has been paid out to developers for their 70% cut on paid apps on the iTunes Store. This immediately led us to wonder how much money has been paid out to Android developers. The Android Market with support for paid apps became available about six months later than the iTunes App Store (Feb 2009 vs. July 2008). Also, at that time there were far fewer Android users than iPhone/iPod Touch. However, that gap has begun to close with 60 different Android devices available and selling in higher quantities than the iPhone as of Q1 2010.

It is possible to get a reasonably good estimate of the amount of money paid out to developers on Android, as the range of sales is presented for each app in the market (ie. “1000-5000 downloads”). Using this as well some random sampling techniques, we are able to get an estimate that we think is accurate within a range of about 20%. However, we generally over-estimated numbers so as to be conservative in our comparison with the iTunes Store.

We pulled the relevant data from AndroidZoom.

Results

Overall (as of June 18th, 2010), there were roughly 2,250 paid games and 13,000 paid non-game apps in the Market. The reason for the large number of apps vs. games is mainly due to the proliferation of spam apps, something which is much rarer in the games category. 4 games are in the 50,000-250,000 range, while 9 apps are in the 50,000-250,000 range. No paid app or game has yet exceeded 250,000 sales. Approximately 60 apps were in the 10,000-50,000 sales range, compared to approximately 45 games. It continues from there, with the vast majority of apps and games falling in to the ignominious “less than 50″ bucket.

Overall we estimate that $6,000,000 has been paid out to developers for games, and $15,000,000 has been paid out on apps. That is a total of $21,000,000, nearly 1/50th the amount paid out to devs on iPhone.

This really indicates how much of a cottage industry the paid Android Market remains, with insufficient sales numbers to warrant full-time labor for paid content. Other approaches, such as ad-supported apps, may prove to be more sustainable.

http://larvalabs.com/blog/android/android-market-payouts-total-2-of-app-stores-1b/

^^ If thats true then OUCH! :-o

I would bet that iPhone users also buy much more music, videos and books as well.

In fact, I'm 100% certain that is the case.

Sadly, that is about right. Its a little bit lower than the estimate, at $6.9m through June (before cuts to devs). On a good note, Robo Defense hit 250k earlier in the month, for a grand total of approximately ~253,000 units sold through June at $2.99 each.

Sales are growing strongly on Android, but the ball really is in Google's court. If I were them, I'd keep 2.2 as the standard OS for about a year, then upgrade to a 3.0 format to stop the balkanization of OSes, and work to introduce more payment options like carrier billing (which doesn't work that great right now).

If Android users had the same purchasing habits that iPhone users did, gaming would be about 20x the size it is currently.

Google isn't you.. :) Google will be releasing "Gingerbread" (3.0?) in q4 2010 with a rumored new interface..  with recommended specs and not minimum specs... google is way too busy making lots of stuff and not regulating them.. I'm expecting there will be tablets some running Android whichever version and others will run Chrome OS...  users will get confused & developers will wait to see which will be more popular... as a developer the safest bet is now Apple..

Awesome Apple is Awesome!

Dont hate, celebrate!

No, i think that went over your head grimes.  When you invest you can't let yourself fall in love with any company, but you have to objectively look at its future prospects.  That's what I mean when I say that if you drink the cool-ade you are a moron b/c fanboys dont exist in the investing world.  If you have anything beyond your useless one liners about investing then let me know.

Here's an illustrative little chart of Apple's revenues by product segment. Only its first quarter and the iPad is already crushing iPod revenues. When it hits full steam, I'd expect it to rival the Mac and iPhone segments.

http://www.businessinsider.com/chart-of-the-day-ipad-ipod-mac-2010-7