The App Landscape: A Weekly Recap

Welcome back 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, achieving a remarkable 218 billion downloads and $143 billion in global consumer spending in 2020.

Last year, users devoted an astounding 3.5 trillion minutes to apps on Android devices alone. App usage in the U.S. has surpassed time spent watching live television. Currently, Americans average 3.7 hours of daily live TV viewing, but now dedicate four hours each day to their mobile devices.

Apps are not merely a source of entertainment; they represent a significant business opportunity. Companies prioritizing mobile platforms had a combined valuation of $544 billion in 2019, 6.5 times greater than those without a mobile focus. Investment in mobile companies reached $73 billion in 2020, a 27% increase year-over-year.

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This week’s highlights include the impending Apple lawsuit with Epic Games concerning App Store fees, the transformative App Tracking Transparency feature, and Facebook’s latest attempt to compete with Clubhouse, among other key updates.

Top Stories

Epic Games vs. Apple Trial Looms

The trial between Epic Games and Apple is fast approaching, scheduled to begin on May 3 and expected to last for several weeks. Epic Games will argue that Apple’s control over the App Store, and the associated 30% commission on in-app purchases, constitutes anti-competitive behavior warranting regulatory intervention. Apple maintains its position, asserting it isn’t a monopoly given competition within the broader market, not solely within its App Store.

Recent filings have revealed Epic’s “Project Liberty,” outlining a plan to challenge app store policies by prompting rejections of Fortnite for circumventing payment systems. Epic also referenced comments from Apple executives – Eddie Cue, Craig Federighi, and Phil Schiller – discussing how Apple fosters user lock-in through its ecosystem, including iMessage. Furthermore, Epic contends that Apple uses security as a justification for its commissions, despite allegations of inadequate vetting processes allowing scams to proliferate.

Apple Elaborates on App Tracking Transparency (ATT)

The release of iOS 14.5 is imminent, and with it comes Apple’s App Tracking Transparency (ATT) framework. This requires apps to obtain explicit user permission before tracking their activity, a shift from the previous practice of quiet, often uninformed tracking. Developers can explain their reasoning for requesting permission, such as for personalized advertising.

Tech companies like Facebook and Google, along with numerous ad-supported apps, will be significantly impacted by this change. Some have explored alternative tracking methods, but Apple has clarified that opting out of IDFA-tracking means developers cannot utilize any other identifiers for tracking purposes. Chinese tech giants, including Baidu, Tencent, and ByteDance, are also investigating a state-backed IDFA alternative called CAID.

Facebook Launches Another Clubhouse Competitor

Facebook’s NPE Team has launched Hotline, a web-based application now in public beta. Hotline blends elements of Instagram Live and Clubhouse, allowing creators to engage with an audience through text or audio questions. Unlike Clubhouse, creators can choose to activate their cameras during events.

Users sign in with Twitter and verify their phone number. Questions are submitted via text and selected by the speaker for discussion. The platform features emoji reactions and, crucially, records events, providing creators with both audio and video recordings for editing and sharing elsewhere. This differentiates Hotline from Clubhouse, offering a more structured, event-like experience. Facebook is targeting creators focused on providing professional advice.

Weekly News

Platforms: Apple

Continued Beta Releases. Apple released the seventh betas for iOS 14.5, iPadOS 14.5, and other platforms this week. The iOS 14.5 beta includes the App Tracking Transparency feature, contributing to the extended testing period.

iOS 14 Adoption Surpasses 90%. Data from Mixpanel indicates that iOS 14 is now running on over 90% of devices. In December, this figure was 81%, demonstrating rapid adoption. 5.07% of users are on iOS 13, while 4.48% use iOS 12 or earlier.

App Store Search Enhancements Tested. Apple is testing tags within the App Store to refine search results. Users encountering these tags when searching for popular terms like “photos” or “wallpaper” can narrow their searches. The test was observed in the iOS 14.5 beta, but availability is not universal.

Find My App Expansion. Apple is opening its Find My app to third-party products, launching a new app for testing. This strategic move aims to address anti-competitive concerns while offering a platform for lost-item tracking. Initial integrations include VanMoof e-bikes, Belkin earbuds, and the Chipolo ONE Spot tracker.

Tile, a major competitor to Apple’s anticipated AirTags, has declined to integrate with Find My, preferring to maintain direct customer relationships. This has led to speculation that Apple is promoting Chipolo to counter potential anti-competitive claims.

App Store Connect and Apple Music Updates. Apple updated the icons for App Store Connect and Apple Music for Artists to align with the design language of macOS Big Sur, hinting at potential design changes in iOS 15.

App Store Transparency Report. Apple’s latest transparency report details app takedowns resulting from requests from government authorities due to suspected legal violations. Apple complies with these requests where legally obligated, distinct from its own editorial guidelines.

Platforms: Google

New Google Play Store Design. The redesigned Google Play Store has begun rolling out, eliminating the hamburger menu in favor of a bottom navigation bar. Settings and other menu items are now accessible through the user’s profile icon. Some users have reported difficulty locating options in the new design. The Play Store hadn’t received a significant update since 2019.

Enhanced App Review Process. Google announced a new app review process for AdMob and Ad Manager, evaluating app inventory quality before allowing unrestricted ad serving. Publishers will receive feedback on their app’s approval status and guidance on resolving policy violations.

Android Auto App Launching. Developers can now publish apps for navigation, parking, and charging to Google Play without participating in a beta program, following months of testing.

Android 12 and Third-Party Launchers. Android 12 may simplify operation for third-party launchers by granting access to universal device searches via a new API (AppSearchManager API).

Google Apps Adopt Privacy Labels. All of Google’s flagship iOS apps now feature Apple’s privacy nutrition labels, with Google Photos receiving an update this week.

Current App Usage Trends

The average consumer now dedicates 4.2 hours daily to applications, representing a 30% increase since 2019. For the first time, daily app usage exceeded four hours in the U.S., Turkey, Mexico, and India during the first quarter of 2021, according to recent reports. India experienced the most significant growth, with an 80% rise in time spent on smartphone apps compared to the first quarter of 2019.

Games accounted for 45% of all apps utilized in Q1 2021, and 36% of gamers reported an increase in mobile gaming since the start of the pandemic, as stated by AdColony. The top 10 casual games collectively garnered 80 million downloads within the first two weeks of 2021.

E-commerce Developments

WhatsApp now enables business owners to administer their product catalogs directly through the web and desktop interfaces. This catalog functionality, initially introduced in 2019, aims to streamline inventory management for businesses. Currently, over 8 million business catalogs are actively maintained on the platform.

Fintech Innovations

The free trading platform Robinhood reports a surge in cryptocurrency trading, reaching 9.5 million customers in the first quarter. This figure is a substantial increase from the 1.7 million customers who engaged in crypto trading during the fourth quarter of 2020.

The secure messaging application Signal is piloting payment functionality in the U.K. utilizing the cryptocurrency MobileCoin (MOB). This beta program grants users access to a new Signal Payments feature, allowing them to link a MobileCoin wallet after purchasing the cryptocurrency on the FTX exchange. Once linked, users can then transmit MOB to other app users with connected wallets.

Social Media Updates

Reports indicate that Twitter explored a potential $4 billion acquisition of the burgeoning audio app Clubhouse, as revealed by Bloomberg. TechCrunch corroborated these discussions, but understands they have since been discontinued. Bloomberg also reported that Clubhouse is currently seeking a new funding round, also at a $4 billion valuation.

TikTok has introduced six novel interactive music effects to maintain audience engagement amidst intensifying competition from tech giants like Facebook, YouTube, and Snap, all of whom have launched TikTok-inspired platforms. The Music Visualizer effect, which employs real-time beat tracking to animate a retro greenscreen, has already been used in over 28,000 videos within a single day.

TikTok is implementing a new auto-caption feature to enhance accessibility for deaf and hard-of-hearing users. Creators can activate this feature during the editing process, offering a convenient option for private listening without headphones.

A coalition of lawmakers has written to Facebook CEO Mark Zuckerberg, requesting information regarding the company’s plans for a curated Instagram version designed for children under 13. Facebook currently offers Messenger Kids, and TikTok also provides an age-gated experience for younger users. Lawmakers have expressed concerns about the protection of children’s data.

Reddit is discontinuing support for iOS 12 and earlier versions, as the majority of users have adopted later iOS releases.

Tim Cook addressed the ban of the right-wing app Parler in an interview on The NYT’s “Sway” podcast. He justified the removal based on the app’s failure to implement adequate moderation, while also expressing hope for its eventual return. “I hope that they come back on. Because we work hard to get people on the store, not to keep people off the store,” Cook stated. “And so, I’m hoping that they put in the moderation that’s required to be on the store and come back, because I think having more social networks out there is better than having less,” he added.

Messaging App News

WhatsApp is testing a feature that would allow users to transfer their chat history between devices (specifically between iOS and Android).

Discord announced that it banned over 2,000 extremist communities in the latter half of last year – nearly double the number banned during the first half, which included the period surrounding the Capitol riot. Approximately 1,500 of these communities were identified by the company itself. Discord was reportedly in discussions with Microsoft regarding a potential acquisition.

Streaming and Entertainment Sector

Spotify launched a voice command feature, “Hey Spotify,” (though initially without public announcement, prompting media coverage). This feature allows users to request artists, songs, albums, and playlists by voice after enabling microphone permissions. Spotify will then listen and record voice data upon hearing the activation phrase. This launch may indicate the impending release of Spotify’s in-car hardware, Car Thing.

Clubhouse has introduced a payment system enabling creators to monetize their shows. Users can send funds to their favorite creators, with Clubhouse currently waiving any fees – leveraging Apple’s donations carve-out established for Tencent in 2018. Creators must activate the virtual tip jar feature to receive payments.

YouTube Music’s mobile app is undergoing a design overhaul. The app is testing new iconography that aligns with the visual update implemented in the YouTube mobile app last year, replacing gray icons with more distinctive ones.

The YouTube Kids app has expanded its availability to 11 new markets, including Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, and Uruguay.

Amidst speculation surrounding Spotify’s “Car Thing” launch, Amazon Music has unveiled a “Car Mode” designed to enhance usability while driving, featuring larger text, prominent buttons, and integrated Alexa functionality – a direct response to Spotify’s voice command feature.

Gaming Industry Updates

Fortnite players can now livestream their gameplay to Houseparty’s social app, owned by Epic Games (Fortnite’s developer). To utilize this feature, Fortnite players must enable Fortnite Mode Streaming and connect to Houseparty. Friends on Houseparty will receive notifications when a game stream begins. This addition follows Houseparty’s launch of a “Fortnite Mode” in November, integrating video chat into Fortnite gameplay.

Google has opened applications for its 2021 Change The Game Design Challenge, which will be conducted virtually. Selected participants will be invited to an online game development workshop hosted by Google’s partner, Girls Make Games. The workshop will consist of four sessions, starting in June and continuing throughout the summer. Participants will acquire the skills necessary to create a playable game, even without prior coding experience.

Apple is facing a class action lawsuit, filed in the U.S. District Court for the Northern District of California, alleging that the company operates an “unlicensed casino” by hosting free-to-play casino games. While these games utilize virtual currency, users can purchase additional coins with real money, which the lawsuit claims violates anti-gambling laws in at least 25 U.S. states.

Health and Fitness Applications

French startup Nabla has launched a new app focused on women’s health, providing features such as chat with practitioners, access to community content, centralized medical data management, and upcoming telemedicine appointment scheduling. The startup has secured $20.2 million in funding and has a team of doctors available to answer user inquiries.

Government and Policy News

Apple is now required to display a selection of Russian-made applications during the iPhone setup process, as mandated by a new law that took effect in early April. Featured apps include Mail.ru, OK Live, VK, and others. These apps are presented for download during the final setup step, rather than being pre-installed.

Security and Privacy Concerns

Facebook is responding to inquiries from the EU’s data protection regulator regarding a 2019 data breach that exposed the emails and phone numbers of over 500 million Facebook users. The breach was reported by Business Insider, raising concerns. Facebook states that the data leak stemmed from a vulnerability that was addressed in August 2019 and involved data scraped through a contact importer feature.

Funding, Mergers & Acquisitions, and IPOs

💰 TrueLayer, a competitor to Plaid, secured $70 million to expand its services internationally.

💰 Indian investment app Groww raised $83 million at a valuation exceeding $1 billion, targeting millennial investors. Tiger Global led the round, with participation from existing investors Sequoia Capital India, Ribbit Capital, YC Continuity, and Propel Venture Partners. The app boasts over 15 million users, with two-thirds being first-time investors.

🤝 Quiq acquired Snaps to create a unified customer messaging platform. Both companies specialize in business-to-customer communication via text and messaging apps. While sharing similarities, Quiq focused on customer service messaging, while Snaps concentrated on marketing communications. Deal terms were not disclosed, but Snaps had previously raised $13 million.

💰 Note-taking app Mem raised $5.6 million from Andreessen Horowitz and officially launched. The app allows users to quickly capture thoughts without requiring immediate organization, offering features like tagging, reminders, and more.

💰 Indian social network ShareChat raised $502 million in Series E funding led by Tiger Global, achieving a valuation of $2.1 billion – up from $650 million last year. Snap and existing investors Twitter and Lightspeed Venture Partners also participated. The six-year-old startup has raised $765 million to date and claims to reach over 160 million users.

📈 Mobile game company AppLovin is aiming for a $30 billion valuation in its IPO. Based in Palo Alto, the company previously sold a majority stake to private equity firm KKR & Co. Inc. and intends to raise up to $2.13 billion by offering 25 million shares priced between $75 and $85 each.

🤝 Saving and investing app Acorns acquired AI-powered startup Pillar, which specializes in managing student loan debt. Pillar launched in 2019 with $5.5 million in seed funding led by Kleiner Perkins and managed over $500 million in student loan debt for 15,000 borrowers. Acorns will integrate Pillar into one of its subscription plans.

💰 Berlin-based Charles secured €6.4 million to facilitate “conversational commerce” on WhatsApp. The startup connects businesses selling on WhatsApp and other chat apps with shop and CRM systems, including Shopify, SAP, and HubSpot.

💰 Design platform Canva, available on both web and mobile, raised an additional $71 million in funding, valuing the company at $15 billion. The company had previously raised $60 million at a $6 million valuation in 2020. The round was co-led by Christian Jensen, a partner at Dragoneer, with participation from T. Rowe Price, Skip Capital, and Blackbird Ventures.

🤝 Online lender Avant acquired fintech startup Zero Financial and its mobile neobank Level. Deal terms were not disclosed but involved a combination of cash and stock. Avant has raised over $600 million in equity and plans to leverage the acquisition to provide personalized financial solutions to underserved consumers.

💰 App Store optimization tool provider AppTweak raised $22 million in Series B funding from Groupe Rossel. The company tracks 3 million keywords daily and experienced 950% revenue growth between 2016 and 2019. Its tools are utilized by companies such as Amazon, Jam City, Zynga, HBO Max, Adobe, and Yelp.

💰 London mobile game studio Tripledot Studios secured $78 million in its first institutional funding round from Eldridge, Access Industries, and Lightspeed Venture Partners. The studio’s games, including classic titles like Solitaire and Blackjack, have an active user base of 11 million, up from 6 million six months ago. The team comprises professionals from Facebook, King, Peak Games, and Product Madness.

💰 Indian conversational messaging platform Gupshup raised $100 million from Tiger Global, achieving a valuation of $1.4 billion. The company has evolved through various business models, including a messaging app and enterprise messaging, ultimately focusing on solutions for building messaging bots, APIs, and tools for customer communication on mobile devices. Its tools support messaging via text, RCS, WhatsApp, Messenger, Telegram, Signal, Twitter, Slack, Skype, and its own channel. Gupshup currently delivers over 6 billion messages monthly.

App Downloads

Halo AR

This new AR application allows users to augment reality onto various surfaces – textbooks, magazine covers, photos, and more. Users capture an image of the object and then overlay it with a chosen photo, video, or 3D model. Educators can utilize the app to link course materials to immersive content, while others can create interactive scavenger hunts. The app is available as a free download in the Education category on both iOS and Android.

SmartGym

This popular gym app for Apple devices, recognized as one of Apple’s favorite Apple Watch apps, received a significant update. The new version of SmartGym more than doubles its exercise library, adding over 330 exercises for gym and home workouts with bands, resistance loops, and TRX equipment. The app’s AI Smart Trainer then uses these exercises to provide personalized workout recommendations. New pre-made workouts are available for boxing, martial arts, and ultimate frisbee.

Social Media Posts

https://twitter.com/marcoarment/status/1380587719278129153