Last month, ChatGPT’s mobile app achieved an impressive milestone, generating a record $4.58 million in revenue. Alongside this financial success, the AI chatbot also experienced a surge in popularity, with 15.6 million app installations globally. However, recent data suggests that growth may be slowing down, presenting a potential challenge for ChatGPT. While revenue growth had been steadily increasing, it dipped to 20% in September after reaching peaks of 31% and 39% in July and August, respectively. This slowdown could indicate that the app is reaching a saturation point in terms of its user base willing to pay for the premium subscription service. Despite the impressive figures, ChatGPT faces stiff competition from Ask AI, a rival app that surpasses it in terms of revenues due to extensive ad spending. Nonetheless, ChatGPT continues to cater to its extensive user base, with the United States being its primary market, accounting for 60% of revenues.
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Revenue Growth and Slowing
Positive growth in app installs and revenue
ChatGPT’s mobile app has been experiencing positive growth in both app installs and revenue. In the month of September, the app achieved a new record with 15.6 million downloads and gross revenue of nearly $4.6 million across its iOS and Android apps worldwide. This indicates a strong demand for the AI chatbot and its features.
New record in September
The month of September proved to be a significant milestone for ChatGPT’s mobile app. Not only did it achieve a record number of app installs, but it also generated a record-breaking revenue of $4.58 million. This highlights the app’s popularity among users and its ability to monetize effectively.
Revenue growth slowing to 20% in September
Despite its positive performance, ChatGPT’s revenue growth has started to slow. Over the past couple of months, the app experienced revenue growth rates of 31% in July and 39% in August. However, in September, the growth rate dropped to 20%. This decrease could be an early indication that ChatGPT is approaching saturation in terms of the number of mobile users willing to pay for the upgraded ChatGPT+ subscription service.
Possible Saturation of ChatGPT+
ChatGPT+ subscription service
ChatGPT offers a subscription service called ChatGPT+. This in-app purchase, priced at $19.99 per month, provides users with faster response times, priority access at peak times, and early access to new features and improvements. The subscription has been reasonably successful thus far, contributing to the app’s increasing revenues.
Subscription selling well so far
ChartGPT+’s subscription service has seen strong sales. In June, it brought in gross revenues of $2.1 million, which increased to $2.74 million in July and $3.81 million in August. Continuously improving its performance, ChatGPT’s subscription service achieved its latest record in September, generating $4.58 million in revenue. These figures indicate that the app’s users value and are willing to pay for the premium features provided by ChatGPT+.
Indication of saturation in mobile users willing to pay
Despite the success of ChatGPT’s subscription service, there are early signs of potential saturation in terms of how many mobile users are willing to pay for it. The slowing revenue growth from 39% in August to 20% in September could be an indicator that the market of users willing to invest in the ChatGPT+ service has reached a plateau. This highlights the need for the app to explore alternative revenue streams or target untapped markets to continue its growth trajectory.
Competitor Comparison
Ask AI making more revenue
Although ChatGPT’s mobile app has been successful, it is not the leading AI app in terms of revenue. Appfigures’ data reveals that a competitor called Ask AI is currently generating more revenue. Ask AI’s success can be attributed to heavy ad spending, which has contributed to its rise in revenue from $6.48 million in May, when ChatGPT mobile launched, to a peak of $6.55 million in August.
Genie and AI Chat Smith not as big
While ChatGPT faces fierce competition from Ask AI, other competitors like Genie and AI Chat Smith have not reached the same level of success. These AI apps have not grown as significantly in terms of revenue, indicating that ChatGPT is positioned well in the AI app marketplace.
Net revenue may differ due to ad spend
While Ask AI may be generating more total revenue, it’s important to consider the net revenue, which could differ due to ad spend. Although Ask AI has higher gross revenues, ChatGPT’s net revenue may be more favorable, accounting for the expenses and costs associated with generating revenue. It will be interesting to assess the profitability and sustainability of both apps in the long run.
Net Revenue and In-App Purchases
ChatGPT’s net revenue in September
After accounting for Apple and Google’s cut of the in-app purchase revenues, ChatGPT’s net revenue for the month of September amounted to approximately $3.2 million. This is an impressive figure considering the deduction of fees and reinforces the app’s ability to generate substantial income.
Apple and Google’s cut
As with many mobile apps, ChatGPT is subject to a revenue share with Apple and Google. These platforms take a percentage cut from in-app purchases, decreasing the net revenue for the developers. Despite this reduction, ChatGPT has managed to achieve significant net revenue, showcasing its profitability and value to users.
App Store driving revenue
While Google Play drove the majority of app installs for ChatGPT with 9 million downloads in September, it was the App Store that proved to be the primary revenue driver. Approximately $3 million of the total in-app purchases in September came from the App Store, indicating the higher purchasing power and willingness of App Store users to invest in premium features. This highlights the importance of optimizing the app’s monetization strategy for different platforms.
App Installs and Lifetime Total
15.6 million installs in September
In September alone, ChatGPT recorded an impressive 15.6 million installs across its iOS and Android apps. This surge in app installs demonstrates the app’s popularity and the growing demand for AI chatbots in the market. The ability to attract such a large user base within a short period is a testament to ChatGPT’s appealing features and functionality.
Lifetime total of 52.2 million installs
Since its launch, ChatGPT has amassed a significant user base. Appfigures estimates the app’s lifetime total installs to be 52.2 million. This showcases the widespread adoption of ChatGPT and affirms its position as one of the leading AI chatbot apps on the market. With its continuous growth in app installs, ChatGPT is poised for further success and expansion.
Google Play driving downloads
Google Play has been instrumental in driving the majority of app downloads for ChatGPT. In September alone, Google Play accounted for 9 million app installs. The platform’s wide user base and accessibility have contributed to the app’s success in attracting a significant number of users. However, it is important for ChatGPT to continue catering to users on both Google Play and the App Store to maximize its reach and growth potential.
Largest Market for ChatGPT
The U.S. accounts for 60% of revenues
When analyzing ChatGPT’s revenue breakdown by country, the United States emerges as the largest market, accounting for 60% of the app’s total revenues. This highlights the app’s popularity and acceptance among American users, further solidifying its presence in the market. The U.S. market presents significant opportunities for ChatGPT to expand its user base and monetization efforts.
Market share breakdown by country
While the United States leads in terms of revenue, ChatGPT has also achieved a sizable market share in other countries. It is essential for the app to capitalize on its success in the U.S. and strategically target other countries where it has gained traction. By focusing on expanding its market share globally, ChatGPT can establish itself as a dominant player in the AI chatbot industry.
In conclusion, ChatGPT’s mobile app has experienced significant growth in terms of app installs and revenue. Although the revenue growth rate has slowed in recent months, the app’s subscription service, ChatGPT+, has proven to be successful. While there are competitors generating more revenue due to heavy ad spending, ChatGPT’s net revenue highlights its profitability. With a large number of installs, particularly driven by Google Play, and a lucrative market in the United States, ChatGPT has positioned itself well in the AI chatbot market. However, it should continue to innovate and explore new revenue streams to sustain its growth and appeal to users globally.
