In terms of monetization, Skype also is a consistent top grossing app among Android device owners. Skype for Android has reached 100 to 500 million numbers of downloads. Skype also is ranked No.5 among the world's top-grossing mobile apps.
According to App Annie's August 2014 Apps index, Skype was the overall fifth most downloaded apps in the world. Windows' share of smartphone sales also is disappointing compared to Android phones. Giving away Windows 8.1 licenses still did not attract many OEM vendors to support Windows tablets. This is in great contrast to Microsoft's struggle with its other mobile-related products. On mobile devices, Skype remains one the most downloaded and top-grossing apps among Android and iOS device users. The Monthly Active Users (MAU) of Skype-for-Facebook still averages over 16 million. Skype's Daily Active Users (DAU) at Facebook is still over 4.3 million. Many Facebook (FB) users still use Skype. Statista's July chart illustrate that Skype has 300 million registered users around the world including China.
When China is included, Skype is still among the most popular messaging apps. SnapChat, WeChat and Tango all have less than 10% penetration rate among mobile users outside of China.
Outside of China, Skype has more than 32% market penetration while Viber has only around 12%. Viber, which Rakuten Group bought for $900 million, still trails Skype in terms of market penetration and number of downloads. I cannot give an exact figure but I believe that Skype is one of Microsoft's best performing mobile-related subsidiaries. Skype is bundled under the Entertainment & Devices Division, which posted $10.2 billion in revenue in FY 2013. The basis for this assumption is Bloomberg's 2013 estimate of $2 billion revenue from Microsoft's Skype unit. However, I estimate that Skype's 2013 revenue is higher than its 2010 sales of $860 million.
Since its takeover in 2011, Microsoft has not released official numbers for Skype. Skype accounted for 34% of all international call traffic in 2012, and 40% in 2013.Įstimating Skype's revenue is not easy. Skype's International traffic in 2012 also grew by 44%, to 167 billion minutes. The rise of 3G/4G connectivity has helped Skype improve its international traffic by 36% in 2013, to 214 billion minutes. The chart from TeleGeography shows Skype's share in international calls is posting a double-digit growth rate (50% CAGR in 2013). In spite of the entry of Viber, Skype is still the world's top VOIP player. I opine that the $8.5 billion bet acquisition of Skype is one of the best things that Steve Ballmer did for Microsoft ( NASDAQ: MSFT).
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