This Week in Apps: App Store Changes, China's App Decline & More

The Ever-Evolving App Landscape: A Weekly Recap

Welcome back to This Week in Apps, a TechCrunch series dedicated to recapping the latest developments in mobile operating systems, applications, and the broader app economy.

The app industry demonstrates continued expansion, achieving record-breaking download numbers and consumer expenditure across both the iOS and Google Play stores in 2021. According to recent year-end reports from App Annie, combined global spending on these platforms reached $135 billion in 2021. This figure is projected to increase further with the release of their annual report, which will incorporate data from third-party app stores in China, next year.

The Growing Significance of Mobile Apps

Apps are no longer simply a means of entertainment; they represent a substantial business opportunity. Companies prioritizing mobile platforms boasted a combined valuation of $544 billion in 2019, a figure 6.5 times greater than those without a mobile focus.

Investment in mobile companies surged in 2020, with investors contributing $73 billion in capital – a 27% increase year-over-year. This Week in Apps provides a centralized resource for staying informed about this dynamic industry, offering news, updates, funding announcements, mergers, acquisitions, and recommendations for new apps and games.

Interested in receiving This Week in Apps directly in your inbox every Saturday? Sign up here: techcrunch.com/newsletters

Please note: This Week in Apps is taking a holiday break, resulting in a shorter update this week!

Top Story

Over 900 App Publishers Anticipate Exceeding $1 Million in Revenue in 2021

Sensor Tower forecasts that the number of publishers expected to surpass $1 million in annual net income in 2021 has nearly doubled since 2016. More than 900 publishers will achieve this milestone this year, representing a nearly 91% increase from the 475 who reached it in 2016.

This figure, however, represents a decrease from the 1,003 publishers who achieved the $1 million revenue mark in the previous year. Sensor Tower attributes this change to a return to normal consumer behavior following the pandemic-driven surge in app installs experienced in 2020.

Impact of Regulations in China

Recent reporting by the South China Morning Post highlights the effects of China’s regulatory actions on its app stores. The number of available mobile applications has decreased by 40% over the past three years due to new data laws and ongoing cleanup initiatives.

In December 2018, Chinese app stores featured 4.52 million apps. As of October 2021, this number has fallen to 2.78 million. The most significant declines occurred this year as Beijing intensified its scrutiny of large technology companies and implemented stricter data privacy regulations.

Dutch Ruling on Apple’s Payment Policies

The Netherlands has issued a new ruling aimed at regulating app stores, as reported by Reuters. This ruling states that Apple has violated the country’s competition laws through its in-app purchase policies. The case specifically concerns dating apps, with Match Group being a prominent critic of Apple’s policies.

The Netherlands’ Authority for Consumers and Markets (ACM) has mandated that Apple implement changes to the App Store by January 15. Failure to comply could result in fines of up to €50 million ($56.6 million). Apple has filed an appeal against the ruling.

Weekly News

Platforms: Apple

• An unconfirmed report from a French website suggests that iOS 16 may not be compatible with the iPhone 6s, 6s Plus, and the 2016 iPhone SE.
• Apple has ceased signing iOS 15.1.1, effectively preventing users from downgrading to that version.

Platforms: Google

• Google announced a 50% year-over-year increase in user engagement with Android apps on Chrome OS devices in 2021. Chrome OS itself experienced a 92% year-over-year growth.
• Amazon has resolved the issues with its Amazon Appstore on Android 12 devices, restoring access to the app and its installed applications after over a month of disruption.
• The Google Play Store now offers filters allowing users to refine searches based on device type, such as Android TV or Wear OS.

Social

A 2022 forecast indicates that TikTok is poised to become the world’s third-largest social network, projected to reach 755 million monthly users next year.

TikTok is planning to launch a delivery-only restaurant business across the U.S. in March, featuring viral food dishes created by TikTok influencers.

Messaging

Facebook Messenger has introduced holiday-themed features, including new AR effects, word effects, chat themes, and soundmojis. Messenger Kids is also offering a Santa chat experience and additional games.

WhatsApp is testing a redesigned interface for voice calls and other features on both iOS and Android, featuring UI tweaks and enhanced encryption indicators.

Streaming & Entertainment

• TikTok is facing accusations of violating open-source licenses in its new Live Studio Windows app, allegedly using code from projects like OBS Studio without adhering to licensing terms.
• The Verge is questioning the status of Spotify HiFi, the high-end version of the streaming service that was expected to launch this year but remains unavailable.

Government & Policy

• Apple is seeking to dismiss an antitrust case in India concerning its app market practices, citing its relatively small market share in the country.

Funding and M&A (and IPOs)

💰 Zepto, an Indian grocery delivery app promising 10-minute delivery, secured $100 million in Series C funding, led by Y Combinator’s Continuity Fund, doubling its valuation to $570 million.

🤝 Rocket Companies, the parent company of Rocket Mortgage, acquired Truebill, a personal finance app, for $1.275 billion.

💰 Amsterdam-based Playtomic, a tennis and padel court booking app, raised €56 million in Series C funding, led by GP Bullhound, after surpassing 1 million monthly bookings in November 2021.

💰 Taptap Send, a cross-border remittance app, raised $65 million in Series B funding, led by Spark Capital, to expand its services to additional countries.

💰 Lapse, an app similar to Dispo, allowing users to take photos that develop after 24 hours, raised $11 million in seed funding, led by Octopus Ventures and GV.

💰 Rec Room, a cross-platform gaming company, secured $145 million in funding, led by Coatue Management, growing its user base to 37 million and achieving a $3.5 billion valuation.

🤝 Spotify acquired Whooshkaa, a podcast technology company, to integrate its technology into Spotify’s Megaphone platform.

💰 MoMo, a Vietnamese super app offering various financial services, raised $200 million in Series E funding, led by Mizhuo Bank, achieving a valuation exceeding $2 billion.

💰 Voi, a European e-scooter and e-bike rental app, raised $115 million in Series D funding, led by Raine Group and VNV Global, preparing for a potential IPO.

📈 Triller, a former TikTok competitor, announced plans to merge with adtech company SeaChange to go public at a ~$5 billion valuation.

📈 Snapdeal, an Indian e-commerce startup, filed for an IPO, seeking to raise $165 million.

Downloads

Wombo Dream Wombo Dream, from the creators of the AI-powered lip-syncing app, utilizes artificial intelligence to generate artwork. Users input a desired image description and select a style, and the app creates a visual composition. The app has generated over 10 million images and has been downloaded over 1 million times across iOS and Android.