This Week in Apps: 2021 Review, App Store Changes, Instagram & Congress

The App Economy in Review: 2021 Trends and Updates

Welcome back to This Week in Apps, your source for the latest news concerning mobile operating systems, applications, and the overall app market.

The app industry experienced substantial growth in 2021, achieving record numbers of downloads and consumer spending across both the iOS and Google Play stores. According to recent year-end reports, global spending across these platforms reached $135 billion, a figure projected to increase with the inclusion of third-party app stores in China in next year’s analysis by App Annie.

Furthermore, consumers downloaded nearly 140 billion new apps this year, representing a 10 billion increase compared to 2020.

Apps are not merely a source of entertainment; they represent a significant business opportunity. Companies prioritizing mobile platforms demonstrated a combined valuation of $544 billion in 2019, 6.5 times greater than those without a mobile focus.

In 2020, investors channeled $73 billion into mobile companies, a 27% year-over-year increase.

This Week in Apps provides a consolidated overview of this rapidly evolving industry, featuring news, updates, funding announcements, mergers and acquisitions, and recommendations for new apps and games.

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Top Stories

The App Economy Reaches $133-135 Billion in 2021

Sensor Tower and App Annie both released their year-end estimates for the app economy this week. Sensor Tower forecasts a combined consumer spend of $133 billion and 143.6 billion downloads for Apple’s App Store and Google Play by the end of the year. We previously covered this report on TechCrunch. App Annie’s report is now available as well.

App Annie’s estimates are slightly higher for consumer spending but lower for downloads. They predict global consumers will spend a record $135 billion across the App Store and Google Play in 2021, up from $112 billion in 2020. However, their report indicates 140 billion new app installs, compared to Sensor Tower’s 143.6 billion.

The firm also noted that iOS continues to generate more spending than Android. Currently, 65 cents of every dollar spent in the app economy comes from Apple users. Gamers are the biggest spenders, contributing around 60% of iOS revenue and nearly 80% of Google Play revenue in 2021, totaling approximately $90 billion in global spending.

App Annie also observed similar trends to Sensor Tower, including revenue growth in non-gaming categories, particularly entertainment and social apps, which are projected to reach $12 billion next year – double the figure from 2020.

India led in app downloads, accounting for 20% of global downloads across both stores, followed by the U.S. (9%) and Brazil (8%).

App Annie identified TikTok as a leading “breakout” app for consumer spending this year. It ranks second on App Annie’s chart of apps with the most significant growth in the past 12 months. TikTok also influences other apps; for example, CapCut, a popular TikTok editing tool, was the top breakout app by downloads.

App Annie’s report emphasizes “breakout” apps and games, rather than the traditional top apps by downloads and revenue. This provides a unique perspective, highlighting newcomers and fast-growing apps, but doesn’t necessarily identify the “biggest” apps of the year. The full report is available here.

Apple’s App Store Changes Remain Paused Following Court Ruling Apple is not required to implement changes to its in-app purchase system and App Store guidelines as initially ordered by the court in its legal battle with Epic Games. Apple largely prevailed in the case, as the court determined it did not operate as a monopolist. However, the company was previously instructed to cease preventing developers from including links directing users to alternative payment methods outside the App Store.

Both Apple and Epic appealed the original ruling – Epic due to its unsuccessful antitrust claims, and Apple regarding the in-app purchase aspect. Apple had a deadline of December 9 to update its policies but requested a stay on the injunction concerning in-app purchasing guidelines pending the appeal. The U.S. Court of Appeals for the Ninth Circuit granted Apple’s request, citing the potential for “irreparable harm” if Apple were required to establish a new system for commissions on purchases made outside the App Store.

Apple argues that allowing developers to link to their own websites for payments doesn’t negate its right to collect a commission. This mirrors Google’s approach in South Korea.

Instagram Testifies Before Congress

Instagram head Adam Mosseri testified before Congress for the first time this week to address concerns regarding the app’s teen safety record. Senators expressed dissatisfaction with the late-night release of promised teen safety features immediately before the testimony, perceiving it as a last-minute attempt to demonstrate proactive measures. Senator Blackburn (R-TN) voiced frustration, stating that the conversation felt repetitive and lacked meaningful change.

Mosseri maintained that research did not indicate Instagram’s products were addictive and highlighted the company’s implemented protections and age-appropriate experiences for users aged 13-17. However, Blackburn’s office discovered that teen accounts still defaulted to public rather than private when created on the web. Mosseri also proposed the creation of a new industry body to establish best practices for apps concerning age verification, parental controls, and product designs for teens and children.

Social media algorithms faced scrutiny during the hearing, and Mosseri revealed plans to reintroduce a chronological feed next year.

Weekly News

Platforms: Apple

• Apple introduced two new features for App Store product pages to help developers optimize their listings. Product page optimization allows A/B testing of different icons, screenshots, and app previews. Custom product pages enable developers to create unique versions highlighting specific features with unique URLs.
• Apple announced price changes on the App Store in Turkey due to fluctuations in taxes and foreign exchange rates.
• Apple seeded the iOS 15.2 Release Candidate to developers, introducing features like Siri-controlled Voice Plan, App Privacy Report, and safety features for iMessage.
• Apple partnered with Boys & Girls Clubs of America to launch a coding program using the “Everyone Can Code” curriculum.

Platforms: Google

• Google released the first beta version of Android 12L, designed for large-screened tablets and foldable devices.
• Google is addressing a bug that prevented some Android users from calling 911, linked to Microsoft Teams.
• Google announced the upcoming launch of Google Play Games for PC, allowing users to play Android games on their desktops.
• Pixel Android phones received the “Quick Tap to Snap” feature, enabling direct access to Snapchat from the lock screen.
• Google Play is simplifying the process of updating the Google Play app itself with a more prominent update button.

E-commerce and Food Delivery

• eBay introduced a feature allowing sellers to scan shoes and sneakers to create interactive 3D views for buyers.
• Drizly added a barcode scanning feature for gifting alcoholic beverages.
• Instagram is hosting live shopping events featuring creators and personalities.
• DoorDash launched “ultra-fast” delivery in New York with deliveries in 15 minutes or less.
• TikTok launched TikTok Seller in Indonesia, enabling merchants to manage their TikTok Shops via their smartphones.

Augmented Reality

• Snap hosted Lens Fest, showcasing new AR-enabled glasses (Spectacles) and updates to its AR lens creation platform (Lens Studio).
• Snap introduced a Lens Call-To-Action feature allowing creators to include links within AR lenses.
• Niantic’s Pokémon GO added a feature encouraging users to AR scan landmarks to contribute to its “real-world metaverse.”

Fintech and Crypto

• WhatsApp launched a cryptocurrency pilot in the U.S., allowing users to send and receive payments using Pax Dollar (USDP).

Social

• Twitter is testing a TikTok-like vertical video feed on its “Explore” page.
• Twitter rolled out a new system for identifying platform problems using automated reporting.
• Meta (Facebook) introduced new features for creators, including online store for “Stars” and improved Live features.
• Reddit launched its “Year in Swipe” feature, providing users with a personalized recap of their activity.
• TikTok shared its year-end list of top trends and videos and will sponsor VidCon U.S. 2022.

Photos

• Google is rolling out the “Locked Folder” feature to non-Pixel Android devices for securing private photos.

Messaging

• Messenger head Stan Chudnovsky is departing Meta.
• Messenger Kids received new features, including dark mode and voice effects.
• WhatsApp introduced a feature allowing users to set messages to disappear after 24 hours, 7 days, or 90 days.

Dating

• Tinder released its “Year in Swipe” report, highlighting trends in user behavior.
• Tinder partnered with Spotify on a “Music Mode” feature allowing users to share their favorite songs on their profiles.

Streaming & Entertainment

• ViacomCBS is partnering with Wattpad to develop original content for its platforms.
• Discord rolled out a pilot of premium memberships for creator monetization.
• Twitter’s live audio rooms (Twitter Spaces) can now be recorded for later listening.
• YouTube Premium subscribers gained access to Listening Controls.
• YouTube Music launched its 2021 Recap feature.

Gaming

• Netflix expanded its mobile gaming lineup with three new casual games.
• Facebook Gaming added a “Play with Streamer” feature.
• WildWorks faced backlash over its move into crypto gaming.

Government & Policy

• Apple CEO Tim Cook signed a five-year agreement with Chinese officials to support China’s economic development.
• The U.S. Justice Dept.’s antitrust investigation of Apple is examining its treatment of Roblox and Epic Games.
• Apple sued Russia’s Federal Antimonopoly Service over App Store policies.
• Ireland’s data protection regulator issued a draft decision regarding Instagram’s handling of children’s data.
• China ordered the removal of 106 smartphone apps due to data privacy and security concerns.

Security & Privacy

• A report by The Markup revealed that Tile’s owner, Life360, is a location data broker.
• Apple allows companies to continue tracking user data even when “Do Not Track” is enabled, provided the data is anonymized and aggregated.
• Verizon’s network is collecting data about users’ browsing history.

Funding and M&A

• Twitter acquired Quill, a Slack rival.
• Singapore startup Upmesh raised $7.5 million in a pre-Series A round.
• Indonesian fintech Flip raised $48 million in Series B funding.
• French fintech Lydia raised $100 million in Series C funding.
• Cerebral, a mental health app, raised $300 million in funding.
• U.S. mobile bank MAJORITY raised $27 million in Series A funding.
• Banking app Nearside raised $58 million in Series B funding.
• Jordan-based game publisher Tamatem raised $11 million in Series B funding.
• U.K.-based social audio app Wisdom raised $2 million in seed funding.
• Berlin-based grocery delivery app Flink raised $750 million in Series B funding.

Downloads

Holiday Home Screens

Numerous iOS home screen theming apps have introduced holiday features, allowing users to customize their icons, widgets, and wallpapers for the festive season. Apps like Aesthetic Kit, Brass, and ScreenKit offer Christmas themes, promoted through App Store Events. Users can also find Christmas-themed quotes and affirmations in motivational widget apps like Motivation and I Am.

The trend of iOS home screen customization remains popular since the launch of iOS 14 widgets. Apps have emerged to simplify the process through downloadable profiles that install icon designs at once. Twitter is also offering seasonally themed icons for Twitter Blue subscribers.

uBrowser The new Apple Watch app, uBrowser, offers a limited mobile browser experience. It allows users to create bookmarks, view recently visited pages, and search the web using DuckDuckGo. However, many web pages with JavaScript or requiring logins may not function correctly. The app uses Authentication dialogue to open websites on watchOS. It also includes an iOS companion app for bookmark management.

Founder Arno Appenzeller developed the app after observing demand for a browser on the Series 7 Watch. The app has been approved twice by Apple and is available for $0.99 on the App Store.