Weekly App Industry Insights: Key Developments & Market Trends
The global app economy continues its explosive growth, with consumers spending 3 hours and 40 minutes daily on mobile apps—rivaling traditional TV consumption. In 2019 alone, the industry saw:
- 204 billion app downloads
- $120 billion in consumer spending
- $544 billion combined valuation for mobile-first companies
Major Developments This Week
1. Apple Faces Antitrust Allegations
The U.S. House Judiciary subcommittee on antitrust declared Apple’s App Store a monopoly in app distribution. Key findings include:
- Significant benefits to developers and consumers acknowledged
- Concerns over anti-competitive practices and data exploitation
- High-profile disputes with developers like Epic Games, Spotify, and Basecamp
Apple responded:
“We vehemently disagree… Our commission rates are mainstream and 85% of App Store revenue goes to third-party developers.”
Recent controversies:
- ProtonMail CEO compared Apple’s policies to “Mafia extortion”
- Telegram forced to restrict Belarus protest channels
2. Microsoft Adopts ‘App Fairness’ Principles
Microsoft announced 10 fairness principles for its Windows Store:
✔ Allows third-party app stores (Epic, Steam)
✔ Supports alternative payment methods
✔ No restrictions on web distribution
Note: These principles don’t apply to Microsoft’s Xbox store.
3. Record Q3 App Revenue Hits $28 Billion
Pandemic-driven trends:
- 20% YoY growth in consumer spending (App Annie)
- 33 billion app downloads globally
- 180 billion monthly hours spent in apps (25% increase)
Notable Legal Battles
- TikTok: U.S. appeals ban ruling; banned in Pakistan
- Google: Faces antitrust lawsuit in India’s smart TV market
- Apple vs. Epic: Trial set for May 2021; Fortnite remains banned
Platform Updates
- Apple: Extended UIWebView deadline; new subscription notifications
- Google: Enhanced Assistant controls for Android apps
- Android: Launched sound alerts for hearing-impaired users
Emerging Trends
- TikTok surpasses Instagram in U.S. teen preference (34% Snapchat, 29% TikTok, 25% Instagram)
- Google adopts Stories format in search results
- Instagram introduces custom app icons and anti-bullying features
- Cloud gaming workarounds: Microsoft and Amazon developing web-based solutions
Funding Highlights
- GoPuff: $380M for on-demand convenience delivery
- Your.MD: €25M for AI-powered healthcare app
- Dispo: $4M seed for retro photo-sharing app
New App Launches
- Up Spell: Word game by Apple’s autocorrect inventor
- Google Arts & Culture: AR filters featuring famous artworks
- Harbor: Gamified emergency preparedness app
Stay updated with the latest in mobile technology and app economy trends.
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