TL;DR:
- ChatGPT’s mobile app hits an all-time high with $4.58M in revenue for September.
- Impressive surge in both app installations (15.6M) and gross revenue ($4.6M) across iOS and Android platforms.
- However, revenue growth has begun to slow, dropping from 39% in August to 20% in September.
- The ChatGPT+ subscription service, priced at $19.99 per month, has performed well, contributing significantly to revenues.
- Competitor Ask AI surpasses ChatGPT in revenue, with $5.51M in September.
- Net revenue for ChatGPT in September was approximately $3.2M after platform fees.
- The App Store drives revenue, contributing $3M to in-app purchases.
- The U.S. market accounts for a dominant 60% of ChatGPT’s revenues.
Main AI News:
In the dynamic realm of AI-driven mobile applications, ChatGPT’s journey is a mixed bag of accomplishments and challenges. The AI chatbot has been on an upward trajectory, witnessing a remarkable surge in app installations and revenue generation. September marked a significant milestone with a staggering 15.6 million downloads and an impressive $4.6 million in gross revenue across its iOS and Android platforms worldwide. However, beneath this veneer of success, there are indications that growth may be tapering off.
Market intelligence firm Appfigures reports that ChatGPT’s revenue growth, which once scaled lofty heights, is now showing signs of deceleration. Over the past few months, revenue growth rates soared, reaching a remarkable 31% in July and an astounding 39% in August. However, September saw a notable dip, with growth dwindling to a still-healthy 20%.
The decelerating revenue growth could potentially be the harbinger of ChatGPT nearing saturation in terms of the number of mobile users willing to invest in the premium ChatGPT+ subscription service. Priced at a substantial $19.99 per month, this in-app upgrade offers advantages such as faster response times, priority access during peak usage periods, and exclusive early access to new features and enhancements. Impressively, the subscription service has enjoyed substantial success thus far. ChatGPT on mobile raked in $2.1 million in June, surged to $2.74 million in July, catapulted to $3.81 million in August, and now proudly boasts the latest milestone of $4.58 million in September.
However, it may come as a surprise that ChatGPT does not reign as the highest-grossing AI app. A formidable competitor, Ask AI, has claimed that title, thanks to substantial investments in advertising. Appfigures’ data reveals Ask AI’s revenue trajectory, starting at $6.48 million in May when ChatGPT Mobile made its debut, peaking at $6.55 million in August and slightly tapering off to $5.51 million in September. Remarkably, even in its moment of slight decline, Ask AI surpasses ChatGPT’s revenue.
In contrast, other rivals like Genie and AI Chat Smith have not achieved the same magnitude of growth as Ask AI.
It’s important to note that net revenue can paint a different picture, especially considering Ask AI’s substantial advertising expenditure. As for ChatGPT, after accounting for Apple and Google’s share of in-app purchase revenues, it netted around $3.2 million in September.
Beyond the financial metrics, ChatGPT has also achieved commendable milestones in terms of user adoption. In September alone, it garnered an impressive 15.6 million installations, bringing its cumulative total to a remarkable 52.2 million, as estimated by Appfigures. Google Play emerged as the primary driver of these installations, accounting for a substantial 9 million, while the App Store contributed 6.6 million.
Notably, the App Store, unsurprisingly, holds sway in revenue generation, contributing a substantial $3 million to the total in-app purchases for the past month. The United States stands out as the AI chatbot app’s largest market, contributing a significant 60% of ChatGPT’s revenue.
Conclusion:
ChatGPT’s mobile app continues to thrive, but signs of slowed growth and competition in the AI app market warrant close attention. The challenge lies in sustaining revenue growth while addressing market saturation and formidable rivals like Ask AI. The App Store’s dominance and the U.S. market’s significance underscore the importance of strategic expansion and innovation in the coming months.
