Greetings and welcome to This Week in Apps, the TechCrunch feature dedicated to summarizing the newest developments in operating systems, the applications compatible with them, and the financial activity surrounding them.

The mobile application market continues to thrive, achieving an impressive 204 billion downloads and $120 billion in direct consumer expenditure during 2019. Currently, individuals dedicate an average of three hours and forty minutes daily to app usage, a figure comparable to time spent watching television. Applications have evolved beyond simple entertainment; they represent a substantial commercial sector. In 2019, businesses prioritizing a mobile-first strategy collectively held a valuation of $544 billion, which is 6.5 times greater than companies lacking that emphasis.

Top Stories

Trump administration backs down on TikTok ban

The Trump administration appeared to have set aside its previous ban on the TikTok application within the United States, as the president’s attention shifted this week to questioning the validity of the U.S. election results – despite the Department of Homeland Security recently declaring it the “most secure in American History.”

This lack of action from the administration indicated what many had long suspected: the initial TikTok ban was primarily a symbolic gesture.

Earlier in the week, TikTok publicly stated it had not received any communication regarding its ban for several weeks, even though a November 12th deadline to sell its U.S. assets was approaching. The company submitted a request for judicial review with the U.S. Court of Appeals for the D.C. Circuit on Tuesday, challenging actions taken by CFIUS (the Trump administration’s committee on foreign investment in the United States).

TikTok had previously requested a deadline extension, but received no response, according to the company.

As The Verge succinctly summarized the situation: “TikTok says the Trump administration has forgotten about trying to ban it, and is seeking clarification.”

TikTok released the following statement:

“For a year, TikTok has been proactively collaborating with CFIUS in good faith to address their concerns regarding national security, even while maintaining our disagreement with their evaluation. Over the past two months, since the President initially indicated approval of our proposal to address these concerns, we have presented comprehensive solutions to finalize that agreement – however, we have not received any meaningful feedback on our detailed data privacy and security framework.

Due to ongoing, new requests and a lack of clarity regarding the acceptance of our proposed solutions, we requested a 30-day extension as permitted by the August 14 order. Today, with the November 12 CFIUS deadline approaching and no extension granted, we are compelled to file a petition in court to protect our rights and the rights of our over 1,500 U.S. employees. We remain dedicated to working with the Administration – as we have consistently done – to resolve the issues raised, but our legal challenge is a safeguard to ensure these discussions can continue.”

Following this reminder, the Commerce Department announced on Thursday it would not enforce the order requiring TikTok to cease operations, citing a preliminary injunction obtained last month as a result of a lawsuit filed by TikTok content creators, who argued the app’s closure would negatively impact their income. However, the Department also appealed that same ruling, creating further ambiguity. A court filing revealed that TikTok was granted an extension by CFIUS, pushing the deadline for a deal to November 27th.

Questions also remain regarding how the incoming Biden administration will handle the Trump-era TikTok ban. While Biden has been critical of Trump’s policies toward China, concerns about TikTok have received support from both major political parties. During a campaign event in September, Biden expressed worry that a Chinese-owned entity would have access to information from over 100 million young people in the U.S.

Election outcomes propel conservative applications up the app store rankings

Following a contentious week of election results, marked by political unrest as supporters of President Trump responded to unsubstantiated allegations of voter fraud, many individuals identifying with the right-wing turned to alternative platforms for their social media and news consumption.

The rankings of the App Store, determined by factors including download numbers and growth rate, quickly reflected this shift with the emergence of several new applications, most notably Parler, a free speech-oriented network, which reached the number one position. (It has since moved down the list following a surge in downloads of Walmart’s application during Black Friday sales, which propelled it to the top spot.)

Data indicates that Parler experienced approximately 980,000 downloads between November 3rd and November 8th. Other applications also benefited from the heightened interest surrounding the election, including the social network MeWe (currently ranked at No. 10 on the U.S. iPhone Top Free Apps chart) and the right-leaning news source Newsmax TV (No. 7).

In contrast to platforms like Facebook and Twitter—which increasingly employ fact-checking mechanisms to flag or conceal potentially misleading information—these alternative applications generally do not. However, this does not signify impartiality. For instance, the official “Team Trump” account was automatically presented to new Parler users upon registration. Prominent conservative figures, such as Senator Ted Cruz and Representative Devin Nunes, have also established a presence on Parler.

Consequently, the user base tends to be heavily skewed. Individuals are primarily interacting with others who share similar viewpoints, reinforcing existing beliefs. Furthermore, due to the absence of fact-checking to address misinformation and conspiracy theories, Parler has itself become the subject of a false claim. A manipulated image purporting to be a Fox News ticker circulated on Parler this week, falsely asserting that George Soros owned the social network. This claim gained enough attention that Parler founder John Matze was compelled to publicly refute it. However, discussions regarding Parler’s origins and ownership continue.

It remains to be seen whether these conservative applications represent a lasting trend in social media, considering that any new entrant must ultimately compete with established networks boasting massive user bases, such as Facebook’s 2 billion users. While smaller than Facebook, Twitter’s 330 million monthly active users still significantly exceeds Parler’s approximately 4 million monthly active users (roughly half of its 8 million registered users).

Larger platforms possess the resources to invest in more than just basic server maintenance. Historically, this has led to the failure of numerous aspiring Facebook competitors. The few applications that successfully cultivate a following today tend to attract a predominantly younger, mainstream audience, as exemplified by TikTok and Snapchat.

Regardless of individual political perspectives, it is reasonable to acknowledge the significant activity that occurred this week:

Instagram Redesign

Instagram implemented a significant app overhaul this week, prominently featuring Reels – its competitor to TikTok – by positioning it centrally within the new navigation bar. This update also involved substituting the Activity tab, previously indicated by a heart icon, with a Shop tab, a change that was initially tested on the app’s home screen earlier this summer. Furthermore, the Camera interface was updated, and the IGTV button was removed.

With the updated app layout, the Compose button and the Activity tab have both been moved to the upper-right corner of the home screen. The central button on the bottom navigation bar is now dedicated to Reels.

This redesign represents a determined effort by Instagram to guide users toward its short-form video platform, Reels. However, Reels has received a relatively muted response from critics, who have described it as uninspired, lacking in creative tools, and contributing to the increasing complexity of the Instagram app.

These changes also demonstrate a strong focus on establishing the Instagram app as a key destination for online shopping, particularly during a crucial period for the e-commerce sector. The COVID-19 pandemic significantly accelerated the growth of e-commerce, potentially by as much as five years, as suggested by industry analysts. Consequently, Instagram’s ambitions to become a major player in online commerce have been expedited.

Both of these adjustments highlight the company’s concerns regarding the potential long-term impact of TikTok on its business. TikTok is currently forecast to exceed 1.2 billion monthly active users in 2021. Moreover, its recent collaboration with Shopify in the area of social commerce suggests it may soon become a prominent platform for this type of online activity.

Weekly News

Platforms

• During its Mac event, Apple announced that upcoming Apple Silicon Macs will have the capability to operate applications designed for iOS. This functionality was initially revealed at WWDC and is now scheduled for implementation with Big Sur and the latest Mac models. Apple demonstrated this feature using apps like Among Us and HBO Max, though it remains uncertain whether developers will have the option to exclude their apps from this compatibility.
• Apple’s TestFlight application, used for beta testing, now features automated updates. This is a long-awaited improvement for developers.
• The first beta versions of iOS 14.3 and iPadOS 14.3 have been released.
• Android has incorporated support for PyTorch, enabling artificial intelligence processing directly on devices.
• Epic Games has achieved a favorable outcome in its legal dispute with Apple concerning in-app purchase fees. A judge rejected Apple’s assertions regarding the validity of Epic’s actions, thereby lessening the potential financial repercussions of the lawsuit and restricting Apple’s counterclaims to matters of contractual breach. (The possibility of punitive damages remains under consideration.)
• With the release of iOS 14.3, Apple will begin recommending third-party applications during the device setup process, as indicated by information discovered within the software’s code. This change seems to be a response to regulatory requirements in certain countries where concerns about anti-competitive practices exist.
• The Android Enterprise Recommended program has expanded to include Samsung and other manufacturers. Established in 2018, this program assists businesses in assessing and approving devices that adhere to Google’s standards for hardware, software, and update support. This update now encompasses Samsung Galaxy devices, among others.
• Voting is now open for Google Play’s “Best of 2020” awards. Users can cast their votes until November 23 to contribute to the selection of Google’s Users’ Choice award recipients.

Security & Privacy

• Zoom reached an agreement with the Federal Trade Commission following accusations of misleading statements regarding its security measures. The organization previously asserted that its video conferencing services utilized “end-to-end” encryption, implying an inability for any party, even Zoom itself, to intercept call content. However, this assertion proved inaccurate, as Zoom retained control over the encryption keys, granting it the potential to access the discussions held by its users.

Apps in the News

Facebook once again implements a feature originally popularized by Snapchat. Both Messenger and Instagram are introducing a new “Vanish Mode” allowing users to send messages that automatically disappear within a chat. This Instagram update is part of a larger effort to consolidate messaging inboxes across Facebook platforms.

Apple restricted access to certain iOS terminal applications. Two terminal apps, a-Shell and iSH, favored by developers, were initially removed from the App Store due to their ability to run scripts. Apple subsequently reinstated iSH after an appeal and issued an apology. a-Shell is also pursuing reinstatement through an appeal process.

Google is ending unlimited free photo storage. Google announced that all photos uploaded will now be included in the 15GB of free storage allocated to each Google account. Users may need to subscribe to Google One for additional storage capacity.

TikTok is enhancing its fundraising capabilities. Building on existing donation sticker features, TikTok now permits users to initiate fundraising directly from their profiles.

Disney+ has surpassed 100 million global downloads, with the United States accounting for 62% of that total, as reported by Apptopia data. 

Projections indicate TikTok will exceed 1.2 billion monthly active users by 2021, according to forecasts from App Annie.

Bumble introduced a new feature to address misuse of the “unmatch” function. This change aims to prevent individuals from evading reports of harassment or other misconduct by removing a user from their matches. The update was prompted by concerns raised regarding the inability to report abusers who had unmatched their victims.

Zynga experienced significant financial growth in the third quarter of 2020. The company reported a 46% increase in revenue, reaching $503 million, alongside a 53% rise in daily active users to 31 million and a 23% increase in monthly active users to 83 million.

Trends

Netflix is testing a feature similar to TikTok. The streaming service is currently experimenting with a feed of full-screen, vertically oriented video clips, primarily focused on comedy content. This initiative aims to enhance content discovery and encourage users to add titles to their viewing lists.

The U.S. Elections correlated with a 30% increase in mental wellness app installations. Data from Sensor Tower indicates that the leading five meditation applications – Calm, Headspace, Pray.com, Breethe, and Insight Timer – experienced a collective 30% rise in downloads between November 3-5 compared to the previous week (October 27-29).

App Annie’s 2021 predictions suggest significant growth in remote work and learning apps. The forecast anticipates a 57% compound annual growth rate (CAGR) for remote business applications, such as Zoom, and a 62% CAGR for remote learning apps in 2021. Furthermore, mobile banking and finance app usage is projected to exceed 31 billion hours annually, demonstrating a four-year CAGR of 35%. Growth is also expected in the fitness and e-commerce sectors, with increases of +23% and +40% respectively.

Chinese e-commerce platforms are incorporating gamification into Single’s Day promotions, the world’s largest shopping event, to increase user engagement. Consumers can now collaborate with friends in teams to unlock even greater discounts. However, this approach has drawn some criticism.

Funding and M&A

• JumpCloud secured $75M in Series E funding to further develop its cloud directory and expand its Apple MDM capabilities.
• Kuda, a Nigerian fintech company, raised $10M to establish itself as a mobile-first challenger bank within the African market.
• DoorDash, a food delivery service, has filed for an initial public offering (IPO). To date, the company has raised $2.5 billion in capital.
• Truebill, a personal finance application, obtained $17M in funding. The platform assists users in identifying and canceling unwanted subscriptions, as well as negotiating lower rates for existing services.

Downloads

HBO’s “His Dark Materials: My Daemon”

HBO collaborated with Framestore, a creative studio, to launch a new iOS and Apple Watch application connected to the television series “His Dark Materials.” As reported by TechCrunch, this app allows fans to interact with their personal “daemons” – the fantastical animal companions representing a character’s soul – using augmented reality to integrate them into the user’s surroundings.

NightWare for Apple Watch addresses PTSD

An Apple Watch application designed for the treatment of PTSD has received FDA approval. NightWare, available only with a prescription, utilizes Apple Watch sensors to monitor sleep patterns, tracking body movements and heart rate to establish a baseline profile. If a nightmare related to PTSD is detected, the watch emits a vibration to interrupt the user’s sleep and promote awakening.

OmniFocus introduces iOS 14 widgets 

This week, the productivity application OmniFocus released new widgets compatible with iOS 14. These include a forecast widget displaying a calendar view of current and upcoming days, and a perspective items widget presenting a list of tasks within a selected perspective. The widgets are offered in small, medium, and large sizes, with customizable font options.