This Week in Apps: iOS 15 Beta, Android App Bundles & Record Spend

The Mobile World: A Weekly Recap

Welcome back to This Week in Apps, your source for the latest developments in mobile operating systems, applications, and the app economy as a whole.

The app industry demonstrates continued expansion, achieving a record 218 billion downloads and $143 billion in global consumer expenditure during 2020. Android users alone dedicated 3.5 trillion minutes to app usage last year. Currently, average daily mobile device usage in the U.S. – four hours – surpasses the time spent watching live television, which averages 3.7 hours.

Apps are not merely a source 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 reached $73 billion in 2020, marking a 27% year-over-year increase.

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Top Stories

Mandatory Android App Bundles are Imminent

Google announced this week that all new applications will be required to utilize the Android App Bundle format starting in August 2021. Introduced in May 2018, the Android App Bundle standard is a modern development approach that replaces the traditional APK. A majority of the top 1,000 apps and games, including those from Adobe, Duolingo, Gameloft, Netflix, reBus, Rainy, and Twitter, have already transitioned to AABs. Over 1 million apps are now in production using AAB.

AABs address limitations inherent in the older APK standard, particularly concerning larger applications and games. Developers no longer need to create a single APK containing assets for every Android device type. This system efficiently delivers only the necessary assets for a specific device, optimizing download speeds and user experience.

However, some express concerns regarding this change. Those who rely on APK hosting sites like APKMirror and APKPure fear the shift to AAB will encourage users to exclusively utilize the Play Store. Epic Games CEO Tim Sweeney argues that moving away from the open APK standard restricts user choice and reinforces Google Play’s dominance.

Record Consumer Spending on Apps in First Half of 2021

Preliminary data from Sensor Tower indicates that consumer spending within mobile apps reached a record $64.9 billion during the first half of 2021. This represents a 24.8% increase compared to the same period last year, across both the App Store and Google Play. While the pandemic-driven acceleration of mobile usage is expected to continue, the growth rate of consumer spending has slightly decelerated, with download growth slowing more significantly.

From the first half of 2019 to the first half of 2020, consumer spending on mobile apps grew by 28.4%, from $40.5 billion to $52 billion, a faster pace than the 24.8% observed in the current period.

Weekly News

Platforms: Apple

✨ Apple released the public betas of iOS 15, iPadOS 15, and watchOS 8. Developers previously had access to early builds, but this week marked the first opportunity for the public to experience Apple’s latest software before its official fall launch. Key changes in iOS 15 include “Focus” modes, providing greater control over notifications and interruptions based on context – work, driving, sleep, and more. Users will also benefit from SharePlay interactivity on FaceTime, iMessage enhancements, FaceTime compatibility with Android users via web links, spatial audio, Live Text for extracting information from photos, app privacy reports, and upgrades to core Apple applications.

Platforms: Google

✨Google is strengthening security measures on Google Play developer accounts to combat spam and malicious apps. Previously, only an email address and phone number were required to create an account. Now, developers must specify an account type (personal or organizational), provide a contact name and physical address, and verify their email and phone number. Google states these changes will improve communication and ensure account authenticity. Mandatory 2-Step Verification for Google Play Console logins is also being implemented.

Samsung and Google previewed their collaborative wearable platform ahead of the next Galaxy Watch launch. The partnership aims to compete more effectively with the Apple Watch. At Mobile World Congress, Samsung showcased the first device featuring the One UI Watch user experience and the unified platform developed in collaboration with Google.

E-commerce

Instagram introduced a feature allowing U.S. businesses to identify as Black-owned using badges displayed on their profiles and product shopping pages. This feature will also be highlighted in areas like the Shop tab, increasing visibility for these businesses.

Walmart partnered with mobile couponing app Ibotta in a multi-year deal offering cash-back rewards to Walmart customers. Rewards will be applied directly to customers’ Walmart accounts for future purchases and accessible through Walmart.com and the Walmart mobile app.

Following Apple and Google’s lead, Shopify reduced App Store commissions. The company will waive its commission on the first $1 million in revenue and then charge a 15% commission on revenue exceeding that amount. This change may encourage other app stores to adjust their commission structures.

Augmented Reality

Rakuten Viber partnered with Snap to integrate Snapchat’s augmented reality Lenses into its calling and messaging app. Over 30 Lenses, built using Snap’s creative tools like Bitmoji, Camera Kit, and Creative Kit, will offer AR-enabled messaging and photos to Viber users. This collaboration expands Snap’s licensing business for its AR and creative tools.

Google’s Arts & Culture app launched Art Filter, a feature allowing users to learn about significant artworks and insert themselves into famous paintings using AR. Google highlighted its use of MediaPipe’s face mesh and 3D face transform technology to create customized effects for each artwork.

Fintech

Venmo introduced a “goods and services” tag for payments sent to personal accounts, differentiating them from personal transactions. This system aims to protect buyers and sellers, with buyers eligible for Venmo’s Purchase Protection Program. However, sellers will incur a fee of 1.9% plus 10 cents per transaction.

Mint, the Intuit-owned finance app, added cryptocurrency investment tracking across supported exchanges, including Binance, BlockFi, Coinbase/Coinbase Pro, Gemini, Kraken, PayPal, and Robinhood. This feature propelled Mint to No. 12 overall on the U.S. App Store and the top spot in the Finance category, though its ranking has since fluctuated.

Social

TikTok is extending its maximum video length to 3 minutes, up from 60 seconds, following public testing with a select group of creators. This allows for more long-form video content, potentially increasing competition with YouTube.

Pinterest banned weight loss ads, becoming the first major social platform to take this step. The company believes social media contributes to harmful beauty standards and that weight loss ads can exacerbate disordered eating behaviors.

Instagram is developing “Exclusive Stories,” a feature similar to Twitter’s Super Follows. Leaked information suggests creators can offer Stories accessible only to paying subscribers, displayed differently on their profiles and potentially saved as Highlights. Screenshots of the feature are from an internal prototype.

TikTok’s Q1 2021 transparency report revealed the removal of 11,149,514 accounts for violating community guidelines, representing less than 1% of total accounts. 7,263,952 of these accounts belonged to children under 13.

Donald Trump and Parler reportedly discussed a deal to move Trump’s social media presence to the right-wing alternative platform. The deal would have granted Trump 40% of Parler’s revenues, but was abandoned because Parler refused to ban Trump’s critics.

Instagram is testing a feature allowing all users to share links directly in their Stories via a linking sticker, mirroring the functionality of the current swipe-up links.

Twitter offered users the opportunity to receive one of seven free NFTs, minted on Rarible in limited editions. This initiative may signal Twitter’s plans to integrate NFTs more deeply into its platform.

Messaging

AT&T joined T-Mobile in adopting Android Messages as the default messaging app for SMS and RCS services, leaving Verizon as the only U.S. carrier without a partnership with Google. RCS offers advantages over SMS, including larger file sizes, typing indicators, improved group chats, Wi-Fi support, and end-to-end encryption.

Slack launched Slack Huddles, an audio tool enabling real-time conversations within the Slack app. The company also previewed a video messaging feature and an upgraded employee directory.

The U.K. issued guidance to messaging apps, advising against end-to-end encryption for children’s accounts, citing concerns about identifying illegal and harmful content. Privacy advocates disagree with this stance.

Telegram rolled out group video calls to its mobile and desktop apps, supporting up to 30 participants, with plans for future expansion.

WhatsApp is testing a redesigned voice message feature displaying short waveforms during recording, allowing users to preview messages before sending.

Dating

Bumble is opening its first cafe in New York later this month, following a delay from its original 2019 plan. Bumble Brew, a partnership with Italian restaurant Pasquale Jones, will offer coffee, cocktails, and meals.

Streaming & Entertainment

Netflix users on Android can now begin streaming titles while they are still downloading, improving the user experience when access to a full download is delayed.

Chinese TikTok rival Kuaishou and Tencent acquired the short-form rights to the Tokyo and 2022 Beijing Winter Olympics from CCTV, becoming the first short-form video platform to be an official Olympic broadcaster.

Amazon Music Unlimited subscribers can receive up to six months of Disney+ for free, mirroring similar bundling offers from other streaming services.

Spotify launched its Spotify Audience Network ad marketplace in Australia, Canada, and the U.K., following its U.S. launch in February.

Gaming

Microsoft’s Xbox division expanded its “Designed for Xbox” mobile gaming accessories program to iOS, coinciding with the Xbox Cloud Gaming beta launch on Windows 10 PCs and Apple devices via web browser. The Backbone One for Xbox controller is now compatible with iPhones running iOS 13 or later.

Health & Fitness

Google updated its Passes API, enabling developers to build functionality for exporting COVID-19 test and vaccination records in a digital format, savable in Google Pay or as a homescreen shortcut. Access is initially limited to healthcare organizations and authorized agencies in the U.S.

Travel

App Annie’s Q2 2021 report indicates a recovery in the travel sector, with increasing monthly hours spent in Travel and Navigation apps in the U.S., U.K., and South Korea.

Drones

Alphabet’s Wing launched OpenSky, a free app for commercial and recreational drone pilots, providing color-coded maps indicating safe flying zones and enabling airspace authorization requests.

Education

Facebook launched Sabee, an educational app in Nigeria, as part of its broader efforts to target the African continent with new mobile products.

Security & Privacy

Twitter now allows users to use security keys as their sole form of two-factor authentication (2FA), enhancing account security.

Funding and M&A (and IPOs!)

💰 Tapcart, a “Shopify for mobile apps,” raised $50 million Series B led by Left Lane Capital. Shopify also participated in the round.

💰 BreezoMeter, an iPhone app measuring air quality, raised $30 million Series C led by Fortissimo Capital.

💰 Dream Games, a Turkish puzzle game developer, raised $155 million Series at a $1 billion valuation led by Index Ventures and Makers Fund.

💰 Jigspace, a 3D modeling app, raised $4.7 million Series A led by Rampersand. Snap also invested in the round.

💰 Mathpresso, a South Korean edtech app maker, raised $50 million in Series C funding.

📈 Robinhood filed for its IPO, following a $70 million settlement with FINRA. The company has 18 million accounts and $80 billion in assets.

💰 Bumble launched StartHER, a microfund investing in early-stage startups led by women or historically excluded groups.

🤝 LYKA, a Southeast Asian social media app, partnered with Tuned Global to integrate a music-streaming service.

📈 Dingdong, a Chinese m-commerce app, experienced a slight gain during its IPO.

💰 Infina, a Vietnamese investment app, raised $2 million in seed funding.

🤝 Discord acquired AR startup Ubiquity6. Deal terms were not disclosed.

📈 Duolingo filed to go public, following 129% revenue growth in 2020.

💰 Life360, a family app, raised $2.1 million in an investment round led by Kobe Bryant’s firm.

💰 Age of Learning, creator of ABCmouse, raised $300 million in funding, doubling its valuation to $3 billion.

💰 Gympass, an exercise and corporate wellness app, raised $220 million in Series E funding.

💰 Givingli, a digital greeting card app, raised $3 million in seed funding led by Alexis Ohanian’s Seven Seven Six. Snap also invested.

💰 Buzzer, a live sports app, raised $20 million in Series A funding.

Downloads

Brickit

Brickit is a mobile app designed for Lego enthusiasts, utilizing computer vision to identify Lego bricks in a pile and suggest building projects. The app quickly analyzes hundreds of bricks, offering projects based on available pieces. While not directly affiliated with Lego, its potential for data collection and technology makes it an interesting acquisition target.

https://twitter.com/AlexanderNL/status/1410253599502962692

Reading Rec’s

Three Weeks with iOS and iPadOS 15: Foundational Updates by Federico Viticci for iMore. A comprehensive review and analysis of Apple’s latest software update.

Tweets

https://twitter.com/yoda/status/1410634684313255942