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

App Store revenue growth

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

  1. TikTok surpasses Instagram in U.S. teen preference (34% Snapchat, 29% TikTok, 25% Instagram)
  2. Google adopts Stories format in search results
  3. Instagram introduces custom app icons and anti-bullying features
  4. 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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