Why Won’t Android Users Pay for Apps?

A study by IHS states that the Android Market grew by 861% in 2010. Of course most of that can be attributed to  the surge in Android device sales, but the growth of Android app sales isn’t as impressive as it might sound. While Android rivals iOS in terms of device sales, the Android market makes up less than 5% of the global app marke, putting Android app sales in last place. That’s behind Nokia’s Ovi Store, BlackBerry App World and of course Apple’s App Store.

Android users are premium wireless users by any standard. They dole out extra cash for their devices and for monthly data service. So why don’t they spend a dollar or two spontaneously like so many iOS users do?

Over the weekend I went out to dinner with a group of friends. One of them had just bought a Droid Incredible, though she said she really wanted to get an iPhone 4 from a Verizon store. She said that she couldn’t justify the extra $100 and didn’t want to spend a lot of money on apps. She likes the Droid Incredible a lot more than her old feature phone, but isn’t 100% satisfied as she’s still learning her way around Android.

So what’s up Android users? Why aren’t you paying up for apps in Android Market?  Do you think Android’s revenue share will grow as more mainstream consumers opt for Android ?

via KnowYourMobile