The Mobile App Landscape: A Weekly Recap

Welcome to This Week in Apps, your source for the latest developments in mobile operating systems, applications, and the broader app economy. The app industry continues to thrive, having achieved a remarkable 218 billion downloads and $143 billion in global consumer expenditure during 2020.

Last year, users devoted an impressive 3.5 trillion minutes to apps on Android devices alone. Furthermore, app usage in the United States now surpasses the time individuals spend watching traditional live television. Currently, the average American dedicates 3.7 hours daily to live TV, contrasted with four hours spent on mobile devices.

Apps are not merely a source of entertainment; they represent a substantial commercial sector. Companies prioritizing mobile platforms demonstrated a combined valuation of $544 billion in 2019, which is 6.5 times greater than those without a mobile strategy. Investment in mobile companies reached $73 billion in 2020, marking a 27% increase year-over-year.

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This week’s focus includes analysis of app store trends, anticipation of Apple’s forthcoming WWDC, recent App Store rejections and their implications for ATT (App Tracking Transparency), and an update on the Arizona App Store bill, among other topics.

Featured Stories

Record-Breaking Quarter for App Revenue

A significant development in the app economy this week is the report from App Annie indicating a new record for consumer spending on mobile apps. Data reveals that global consumers spent $32 billion on apps across iOS and Google Play in Q1 2021, a 40% increase compared to Q1 2020. This represents the largest quarterly revenue ever recorded, with mobile consumers spending approximately $9 billion more in Q1 2021 than in Q1 2020, partly influenced by the ongoing pandemic.

While iOS generated higher consumer spending than Android during the quarter – $21 billion versus $11 billion, respectively – both platforms experienced the same 40% growth rate. Gaming continued to be the primary driver of consumer spending, accounting for $22 billion of the total – $13 billion on iOS (a 30% year-over-year increase) and $9 billion on Android (a 35% year-over-year increase).

Apple's Rejection of Apps Utilizing Fingerprinting

As the release of iOS 14.5 approaches, reports emerged this week detailing Apple’s rejection of apps employing third-party SDKs that track users through a technique known as device fingerprinting. The Adjust SDK, initially non-compliant with Apple’s new App Tracking Transparency guidelines, resulted in rejections for apps incorporating it. This potentially affected a substantial number of applications, given Adjust’s claim of being trusted by over 50,000 apps. However, Adjust promptly updated its SDK (available open-source on GitHub) to facilitate app updates for its clientele.

The changes introduced by App Tracking Transparency (ATT) have created disruption across the industry, prompting companies to adapt and diversify their revenue streams. Snap was reportedly exploring alternative methods to circumvent ATT by collecting data such as IP addresses from ad campaign analysis firms, potentially cross-referencing it with their own user data for continued tracking. Snap informed the Financial Times that it tested this technique, termed probabilistic matching, to assess the impact of Apple’s policies, but stated its intention to discontinue the program following the implementation of Apple’s changes. (A claim met with skepticism!) The company believes that tracking individual users will become prohibited, but data collection on “cohorts” will remain permissible. On Thursday, Apple issued warnings to developers, instructing them to remove code supporting probabilistic matching.

WWDC 2021 Announcement

Apple announced that WWDC will once again be a virtual event. The online conference will be held from June 7 to 11, mirroring last year’s format, enabling developers globally to participate in prerecorded keynotes and sessions, and to network and learn from Apple engineers and staff. Students can submit their Swift playgrounds by April 18 for a chance to win exclusive merchandise and Apple pins.

https://twitter.com/jonk/status/1376947048461737987

Speculation has already begun regarding the meaning behind the imagery released by Apple, which depicts Memoji characters wearing glasses while viewing a Mac screen. Some have suggested that Apple may be hinting at AR glasses. However, this appears unlikely; the glasses simply serve to reflect the computer screen, conveying the message that this year’s event will be another virtual experience.

The Arizona App Store Bill Fails to Pass

The demise of the bill can be attributed to the Coalition for App Fairness, with key proponents including Epic Games, Spotify, Tile, and other developers advocating for alternatives to standard app store commissions and diversified distribution methods. Last week, the reason for the Arizona Senate’s postponement of the bill’s vote, previously approved by the Arizona House, remained unclear. However, Representative Regina Cobb, the bill’s sponsor (HB2005), revealed to The Verge that intense lobbying efforts by Apple and Google swayed Senate members who had initially agreed to a vote. Consequently, when sufficient support waned, the Senate opted to forgo bringing the bill to a vote.

In an email to TechCrunch, Cobb corroborated this account. She stated, “We had secured the necessary votes a few days prior,” and continued, “Shortly before the committee was scheduled to proceed, the Chairman was informed by the App Fairness lobbyist that the votes were no longer present, leading to a decision to avoid wasting committee time on the matter.”

Weekly News

Platforms: Apple

📱 Apple has released iOS 14.5 beta 6 to developers, introducing a significant update: the introduction of new Siri voices. iOS 14.5 will move away from defaulting to a female voice for Siri, instead offering users a selection of voices presented in a randomized order. While beta 5 was initially anticipated to be the final beta before public release, this proved incorrect. However, with the arrival of beta 6, a Release Candidate could be available as early as next week.

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In anticipation of WWDC 2021, Apple updated its Apple Developer app. The updated app features a redesigned interface, incorporating sidebar navigation on iPad, full-screen video support on larger Mac displays, and a revamped Search section for discovering content. Similar to the previous year’s WWDC, attendees will be able to connect with and participate in announcements, sessions, and 1:1 labs through the Developer app.

📱 Sensor Tower reports that U.S. users spent an average of $138 on iPhone apps in 2020, with projections indicating an increase to $180 in 2021. Increased reliance on iPhone apps for work, education, entertainment, and shopping throughout 2020 drove per-user spending to a record high, marking the largest annual growth since 2016. Spending on mobile games constituted a substantial portion of this figure, growing by 43% year-over-year from $53.80 in 2019 to $76.80 in 2020. This represents a growth rate exceeding the 22% increase observed between 2018 and 2019, when in-game spending rose from $44 to $53.80.

Platforms: Google

🔎 Starting May 5, Google will restrict Android 11+ apps from accessing a list of other apps installed on a user’s device. The company now classifies this information as “sensitive,” despite previously allowing it for years. This practice facilitated the operation of data-gathering apps that cataloged installed applications. Going forward, Google will grant exceptions only to apps such as antivirus software, file managers, and browsers. It is anticipated that data-gathering firms will release apps of these types in the near future.

Augmented Reality

Google has expanded its AR virtual art galleries within the Arts & Culture app, adding three new Pocket Galleries featuring collections from the Jean Pigozzi Collection and the J. Paul Getty Museum.

Health & Fitness

An article published in The Cut this week questions the efficacy and viability of therapy apps such as Talkspace, BetterHelp, and AbleTo, which employ matching algorithms similar to dating apps and subscription-based business models offering enhanced features like live video sessions. The article raises concerns about the apps’ ability to deliver on their promises and highlights past scrutiny regarding data usage, sponsorship agreements, worker treatment, and healthcare regulation violations.

IATA, the global airline industry body, announced the launch of a digital travel pass for COVID-19 test results and vaccine certificates on iOS by mid-April. The travel pass aims to expedite check-in procedures and is currently being tested by Virgin Atlantic on its London to Barbados flight on April 16.

Apple Maps now provides COVID-19 travel guidance for over 300 airports worldwide with its latest update. Users can now access information regarding COVID-19 health measures at airports through the app, either via a link to the airport’s official advisory page or directly on the in-app location card.

Social Networks

Facebook has partnered with the U.S. Department of Health and Human Services (HHS) and Centers for Disease Control and Prevention (CDC) to launch a set of profile frames designed to encourage COVID-19 vaccinations. Available in both English and Spanish, the frames display messages such as “Let’s Get Vaccinated” or “I Got My COVID-19 Vaccine.” Research suggests that social norms can influence health behaviors, and the hope is that increased adoption of these frames will encourage vaccination among hesitant individuals. Facebook will also display to users how many of their friends and family members have been vaccinated, based on frame usage.

Facebook this week introduced new tools enabling users to easily switch between the “Most Recent” and “Favorites” views of their News Feed, as well as tools to limit comments on posts and other changes. Simultaneously, the company published a lengthy statement defending its personalization algorithms, arguing they are not responsible for the spread of misinformation and harmful content. Instead, it attributes these issues to users actively seeking out and engaging with such content. Facebook is urging regulators to provide clear guidelines on misinformation, anticipating that increased regulation will be more manageable than competition from new social media platforms.

Instagram launched Remix on Reels, a feature similar to TikTok Duets, allowing users to record videos alongside existing content to react, collaborate, and more. Snapchat is also developing a similar feature, also named Remix.

Snap is planning to expand its hardware offerings, The Information reported, with a new, more advanced version of its Spectacles smart glasses featuring AR effects. The company is also reviving a previous effort to develop its own drone.

Instagram is reportedly developing a new method to block trolls. Reverse engineer Alessandro Paluzzi discovered code within the app referencing a new option, “Hide More Comments,” which will automatically hide comments containing frequently reported words.

Instagram announced the international expansion of IGTV ads, initially launching in markets such as the U.K. and Australia.

Facebook has extended the deadline for iOS apps utilizing its Facebook Audience Network monetization platform to transition to a bidding-only system – a response to Apple’s iOS 14 changes. The previous deadline of March 31 has been moved to May 31. Android apps now have until September 30.

Streaming & Entertainment

LinkedIn is developing a Clubhouse-like feature, offering a speaker stage and tools for joining/leaving rooms, reacting to comments, requesting to speak, and more. The company believes this feature will differentiate itself by leveraging LinkedIn’s professional network, rather than solely relying on social profiles.

Spotify significantly expanded its personalized playlist offerings with the launch of “Spotify Mixes,” a new category of playlists inspired by Daily Mixes. These playlists are categorized by artist, genre, and decade, offering easy-to-understand titles like “Drake Mix,” “Pop Mix,” and “2010s Mix.”

Audioburst launched a platform enabling developers to integrate podcast feeds into mobile apps. The platform supports both partial and complete podcasts, radio shows, and other streaming audio content.

Discord introduced Stage Channels, a Clubhouse-like feature, allowing designated individuals to broadcast to a group of listeners. Listeners can raise their hand to ask questions, and moderators can manage speakers by bringing them onstage, removing them, or muting them. Stage Channels are available on desktop, web, and Discord’s mobile apps.

Gaming

Apple significantly expanded its subscription-based gaming service, Apple Arcade, this week with the addition of over 30 new titles, including exclusive games like NBA 2K21, Star Trek: Legends, and a new version of The Oregon Trail from Gameloft. Additionally, Apple introduced a new strategy by adding older titles in two new categories: “Timeless Classics” and “App Store Greats.”

“Timeless Classics” will feature popular games like chess, backgammon, sudoku, crosswords, and solitaire, while “App Store Greats” will offer award-winning titles like Threes!, Mini Metro, Fruit Ninja Classic, Monument Valley, and Chameleon Run – all of which will be free and unlocked. With these additions, Apple Arcade now boasts over 180 games for $4.99 per month (or included with an Apple One subscription).

Supercell, the Finnish mobile gaming company behind Clash of Clans and Clash Royale, announced the development of three new Clash titles: a turn-based tactical game (Clash Quest), a virtual board game (Clash Mini), and a co-op action roleplaying game (Clash Heroes). These games are currently in early development and will be discontinued if they do not meet Supercell’s quality standards.

Fintech

Following the meme stock surge, Robinhood will remove its controversial digital confetti feature, which critics argued gamified investing.

WhatsApp Pay, the messaging app’s peer-to-peer payments feature, has been authorized in Brazil. The launch was initially announced last year but delayed due to concerns from Brazil’s central bank regarding potential disruption to existing payment systems and licensing issues. With the launch of Pix, Brazil’s own payment system, the service is now approved.

Bakkt launched a digital wallet app enabling users to trade fiat currency for cryptocurrency, as well as other digital assets not on the blockchain, such as frequent flier miles, loyalty points, gift cards, and in-game assets.

Productivity

Microsoft’s Cortana mobile app for iOS and Android officially shut down on March 31. The AI-based personal assistant was Microsoft’s response to Siri, Alexa, and Google Assistant, but the mobile version failed to gain traction. Microsoft has since shifted its focus to integrating AI assistance directly into its Microsoft 365 apps.

Google’s in-house incubator Area 120 launched Stack, an Android app that digitizes personal documents, IDs, receipts, and more. The app automatically names files, extracts key information (like bill due dates), and organizes them using Google’s DocAI technology. Scans can also be synced to Google Drive for easy access.

Amazon reported increased demand and engagement for productivity apps on Amazon Fire tablets. The pandemic-induced changes to work and home life in 2020 led to a 62% month-over-month increase in productivity app usage and a 226% growth in engagement among productivity app users.

Government & Policy

Republican members of the House and Senate antitrust committees sent letters to Apple, Google, and Amazon, questioning their decision to remove Parler from their platforms, framing it as targeting a small business. The tech companies removed Parler for violating their community guidelines following the U.S. Capitol attack.

The Information reported that Apple’s App Store hosts over a dozen apps created by a China paramilitary group accused of Uyghur genocide. The organization, sanctioned by the U.S. for human rights abuses, has published apps offering news, government services, and e-commerce support.

South Korea’s antitrust regulator announced on Wednesday that it will refer Apple’s local unit and an executive to prosecutors for allegedly obstructing the regulator’s investigation into unfair business practices. The regulator also plans to fine Apple Korea 330 million won ($265,000 USD) for hindering the investigation.

Security & Privacy

The Odyssey Team released Taurine, a new jailbreak for devices running iOS 14-iOS 14.3. The jailbreak is installed using AltServer, similar to the unc0ver jailbreak.

A research report covered by Ars Technica found that Google collects up to 20 times more data on Android users than Apple collects from iOS users. The report analyzed telemetry data transmitted directly to the companies. Google disputed the findings, citing flaws in the researcher’s methodology.

The Washington Post reported a case of an App Store scammer stealing a user’s life savings of $600,000 in bitcoin. The user believed the app was safe due to Apple’s App Store reputation, but the app was designed to trick users by impersonating Trezor, a hardware device for storing cryptocurrencies. Trezor had previously notified Apple and Google about fake apps scamming its customers, but no action was taken. The fake app bypassed App Review and transformed into a crypto wallet without Apple’s knowledge.

Funding and M&A💰 Cameo, a celebrity video request app, raised $100 million in Series C funding led by Jonathan Turner with e.ventures, valuing the business at just over $1 billion.

🤝 Spotify acquired Betty Labs, the maker of the live audio app Locker Room, to compete with Clubhouse. The app currently focuses on sports talk but will expand to cater to a wider range of fans and creators. Spotify will add interactive features to Locker Room, aiming to challenge the growing popularity of live audio platforms.

💰 Holler raised $36 million from CityRock Venture Partners and New General Market Partners to power “conversational media” in popular apps. The company partners with apps like Venmo and The Meet Group to provide AI-powered recommendations of GIFs and stickers, monetized through branded content from companies like HBO Max, IKEA, and Starbucks. Holler’s content reaches 75 million users monthly, up from 19 million last year.

💰 Fetch Rewards, a Madison-based customer loyalty and retail rewards app, raised $210 million in Series D funding, valuing the business at over $1 billion. Led by SoftBank’s Vision Fund 2, the funding will accelerate the company’s ability to process online receipts.

💰 Funko, a maker of pop culture collectibles, acquired a majority stake in TokenWave, the maker of the TokenHead mobile app, to enter the NFT market. TokenHead allows users to showcase and track their NFT holdings. Funko plans to launch its first NFTs in June, starting at $9.99, with a unique property offered each week, sold on the Worldwide Asset Exchange.

💰 Bilibili, a Chinese video streaming platform, invested HK$960 million (around $123 million USD) into X.D. Network, the maker of the game distribution platform TapTap, acquiring a 4.72% stake. X.D. is a competitor to traditional game distributors in China.

💰 Nice Tuan, a Chinese grocery app, raised $750 million from Alibaba, DST Global, and others to strengthen its supply chain and expand its fresh produce offerings. The company serves 1,598 cities and counties across China, processing 15 million orders daily.

💰 Nested, a U.K.-based modern real estate agency, raised an additional £5 million.

💰 Ensemble, an expense tracking app for divorced parents, raised $3 million in seed funding. The app helps track shared expenses like medical bills, extracurricular activities, and transportation.

📉 Zhihu, a Chinese Q&A site and Quora rival, dropped 11% after its $522.5 million U.S. IPO. The company is the largest Q&A community by average mobile monthly users and revenue, with 75.7 million MAUs in the last quarter.

💰 Fishbrain, a Stockholm-based sport fishing app, raised $31 million in funding for its mobile app that combines a social network and social commerce platform, with nearly 12 million registered users worldwide.

💰 Ajaib, an Indonesian investment app, added $65 million to its Series A, bringing the round to $90 million, led by Ribbit Capital.

💰 Lowkey, a gaming startup, raised $7 million from Andreessen Horowitz for its app that allows gamers to create and view short gaming clips.

🤝 Sandbox & Co., a London-based company, acquired Fingerprint, a kids education and entertainment company. Deal terms were not disclosed. Fingerprint CEO Nancy MacIntyre will lead the new Sandbox Kids division.

Downloads

Smart Photo Widget

Cromulent Labs, the developers of Launcher and other apps, introduced a Smart Photo Widget that automatically frames photos to fit the selected widget size. The widget can also skip low-quality photos. The Premium version allows for adding dates, times, and filters. The app is free on iOS with in-app purchases.

Frenzic: Overtime (Soon)

Iconfactory, the publisher and developer of Twitterific, announced the upcoming launch of Frenzic: Overtime, a sequel to the original iPhone game released 13 years ago. The game will feature over 45 levels, multiple gameplay modes, and hundreds of mini-goals. It will be available on Apple Arcade, and subscribers can set a notification for its launch.

SPIN Safe Browser

Boomerang, a parental control app maker, released SPIN Safe Browser for schools, enabling content filtering. The app leverages AppConfig for content filter management through MDMs like Jamf School and Jamf Pro. Administrators can enable or disable categories and block/allow specific URLs.

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