App Industry Weekly: Key Developments Shaping the Mobile Ecosystem
The State of Mobile Apps in 2020
The global app economy continues its explosive growth, with staggering statistics:
- 204 billion app downloads in 2019
- $120 billion in consumer spending
- Average daily usage: 3 hours 40 minutes (rivaling TV consumption)
- Mobile-first companies valued at $544 billion (6.5x higher than non-mobile focused firms)
This week brought significant developments across international markets, regulatory landscapes, and competitive dynamics in the app world.
Major App Store Developments
China’s App Store Crackdown Intensifies
- 2,500+ games removed in early July (4x April’s removals)
- Lifetime revenue of removed games: $34.7 million
- One title accounted for $10+ million in revenue
- China represents 33.2% of global App Store game spending ($12.6 billion in 2019)
EU Implements New App Marketplace Regulations
Effective July 12, the EU’s new rules require:
- 30-day notice before app removals (with exceptions for security risks)
- Transparency in app ranking algorithms
- Disclosure of preferential treatment for certain publishers
- Plain-language terms and conditions
- Third-party mediation for disputes
These changes come amid growing scrutiny of Apple’s and Google’s app store practices globally.
Platform Wars: The Battle for Short-Form Video
Instagram Reels Prepares US Launch
- TikTok compe***** launching in early August
- Already available in India, Brazil, France, and Germany
- Features 15-30 second videos with creative tools
- Launch timing coincides with potential TikTok ban in US
Market Shifts in Video Sharing
- India’s Roposo gaining 500,000 users/hour post-TikTok ban
- Snapchat testing TikTok-style navigation
- Facebook Messenger adds mobile screen-sharing feature
Technical Innovations & Developer Updates
Cross-Platform Developments
- Microsoft xCloud launching September with 100+ titles
- Microsoft & Google collaborate on Progressive Web Apps (PWAs)
- Google launches Kotlin Basics course for Android development
- Apple updates coding terminology for inclusivity
Mobile Gaming Trends
- Mobile gaming revenue now 2.8x PC/Mac and 3.1x console gaming
- Cloud gaming services bridging mobile/console experiences
Privacy & Security Developments
- Federal court allows Facebook lawsuit against NSO Group to proceed
- Google sued over alleged Firebase SDK tracking
- Mozilla VPN launches on Android and Windows
Market Shifts: US Overtakes China in Downloads
For the first time since 2014:
- US App Store downloads: 2.22 billion (27.4% YoY growth)
- China App Store downloads: 2.06 billion (2.1% YoY growth)
Driven by pandemic-induced demand for:
- Education apps
- Business/remote work tools
- Entertainment platforms
Funding & Acquisitions
- Meditopia: $15M Series A (meditation app)
- Lex: $1.5M seed (queer women’s social app)
- Google invests $4.5B in India’s Reliance Jio
- Robinhood valuation reaches $8.6B
- SiriusXM acquires Stitcher for $325M
New App Launches
- Brief: News aggregation app focusing on balanced reporting
- Instagram Shop: Redesigned e-commerce experience
- Nextdoor Sell for Good: Donation feature for local nonprofits
Looking Ahead
The app industry continues to evolve rapidly, with:
- Intensifying platform competition
- Growing regulatory scrutiny
- Shifting consumer behaviors
- Technological innovations bridging mobile and other platforms
Stay tuned for more developments in this dynamic space.
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