This Week in Apps: WWDC 21, Instagram Creator Week & Android 12

The Expanding App Ecosystem

Welcome to This Week in Apps, TechCrunch’s regular series dedicated to covering the latest developments in mobile operating systems, applications, and the broader app economy.

The app industry demonstrates continued expansion, achieving a record of 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.

Notably, app usage in the U.S. has surpassed time spent viewing traditional live television. Currently, the average American dedicates 3.7 hours daily to live TV, while mobile device usage occupies four hours each day.

The Business of Apps

Apps are not merely a source of entertainment; they represent a significant commercial opportunity. Mobile-first businesses collectively held a valuation of $544 billion in 2019, which is 6.5 times greater than companies lacking a mobile strategy.

Investment in mobile companies reached $73 billion in 2020, marking a 27% increase compared to the previous year.

This week’s focus will be on the key announcements affecting app developers from WWDC 21.

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WWDC 21: A Comprehensive Overview

Apple’s WWDC event was held virtually once again this year, but the volume of announcements remained substantial. Apple unveiled a range of new developer tools and frameworks, modifications to iOS that will influence consumer device interaction, and updated App Store submission guidelines.

A detailed examination of every developer update is beyond the scope of this report; resources exist that specialize in areas like the enhanced concurrency features of Swift 5.5 or the latest advancements in SwiftUI.

However, after careful consideration of the new information, several key takeaways and updates have emerged.

Xcode Cloud

Xcode 13, Apple’s integrated development environment, now features Xcode Cloud. This is a continuous integration and delivery service that is natively integrated and hosted on Apple’s own cloud infrastructure.

According to Apple, the service originated from their 2018 acquisition of Buddybuild. It aims to accelerate the development cycle by providing cloud-based tools for app building.

These tools facilitate parallel execution of automated tests, streamlined app delivery to testers through TestFlight, and consolidated tester feedback viewing via the App Store Connect web dashboard.

Beyond the immediate benefits to the development workflow – which have generated considerable enthusiasm among developers as evidenced by discussions surrounding #WWDC21 – Xcode Cloud signifies a substantial expansion by Apple into the cloud services sector.

Currently, Amazon Web Services (AWS), Google, and Microsoft are the dominant players in this space.

While Xcode Cloud might not be a complete substitute for more comprehensive solutions tailored for larger teams with complex requirements, it is expected to simplify app development.

Furthermore, it represents a potential new source of revenue for Apple.

The announcement of pricing details, however, remains pending.

Swift Playgrounds 4

A significant update to Swift Playgrounds arrived with iPadOS 15. This update introduces the capability for developers to construct applications for both iPhone and iPad directly on their iPad devices.

These completed applications can then be submitted to the App Store. Apple has announced that with Swift Playgrounds 4, scheduled for release later this year, developers will gain the ability to design app interfaces visually using SwiftUI.

Furthermore, a live preview of the application’s code will be available during the development process. Developers will also be able to execute their apps in full-screen mode for comprehensive testing.

App Project Compatibility

App projects created within Swift Playgrounds can be seamlessly opened and modified using either Swift Playgrounds itself or Xcode. This provides flexibility for developers.

Although not the fully-featured Xcode for iPad that some professionals have anticipated, this development lowers the barrier to entry for app creation.

The iPad’s more affordable cost, when contrasted with a Mac, makes app development more accessible to a wider audience.

Encouraging App Development

This update is expected to inspire greater participation in app development. Swift Playgrounds effectively teaches foundational coding concepts to students.

It then guides them through progressively more complex lessons. Now, users can progress from learning to actually building and publishing functional applications.

• SwiftUI enables visual app design.
• Live code previews accelerate development.
• Full-screen testing ensures app functionality.

The ability to build and publish real apps represents a substantial advancement for aspiring developers using Swift Playgrounds.

App Store

Increasing antitrust scrutiny directed at Apple has fueled a growing belief among developers that the company could be more proactive in supporting their business growth. Consequently, many feel the 15%-30% revenue share Apple receives is not fully justified. Recent updates to the App Store aim to address this perception.

Developers will shortly have the capability to design up to 35 distinct product pages, each tailored to specific user segments. Each page will feature a unique URL for tracking and analytical purposes. These pages can showcase varied preview videos, screenshots, and descriptive text.

Furthermore, Apple will enable developers to distribute traffic across three variations of their app’s standard page to determine which performs most effectively. They can then designate the proportion of App Store users who will view each variation.

Simultaneously, the App Store will begin displaying in-app events occurring within developer applications to customers. These events could include gaming tournaments, fitness challenges, film debuts, and similar offerings, thereby boosting app traffic and encouraging user re-engagement. Collectively, Apple is demonstrating that its App Store can facilitate discovery beyond simply providing an app listing.

In addition to enhancements to the App Store itself, Apple has revised its App Store policies to tackle the escalating issue of fraudulent applications. These changes empower Apple to take decisive action against scammers by removing them from the Developer Program. The updated guidelines also provide developers with a direct channel to report spam to Apple, bypassing reliance on social media or press releases.

Historically, Apple has minimized the extent of the scam app problem. The company highlighted that the App Store prevented over $1.5 billion in fraudulent transactions in 2020. However, even a small percentage of scam apps, utilizing deceptive ratings, can defraud users of substantial funds and erode trust in both the App Store and Apple, with lasting repercussions for the ecosystem’s overall health. A key question remains: why is Apple attempting to resolve App Review concerns through forms – for reporting fraud and appealing decisions – when a more comprehensive system for monitoring the app ecosystem beyond the initial review is clearly needed?

Significant Changes to iOS Notifications

Updates to App Store discovery, as previously discussed, are becoming increasingly important. This is because developers might need to lessen their dependence on push notifications as a method for re-engaging users with their applications. With iOS 15, users gain the ability to designate apps from which they do not require immediate notifications.

These designated apps will be consolidated into a new Notification Summary, delivered according to a user-defined schedule. Siri’s intelligence will then prioritize which apps appear at the top of this summary. For apps already facing challenges in user re-engagement via push notifications, placement at the bottom of a summary will likely prove detrimental.

Notification Management Options

Users can now directly assign notifications to the “Send to Summary” option from the Lock Screen, in addition to the existing choices of “Deliver Quietly” or complete disabling. Consequently, a poorly timed push notification could represent the last opportunity for an app developer to reach a user.

Introducing Focus Modes

The innovative “Focus” modes empower iOS users to establish distinct quiet settings for various activities, such as work, leisure, or sleep. Each Focus mode can be customized with its own unique rules and even dedicated home screens.

Successful implementation across the app ecosystem, however, will necessitate developer integration of four “interruption levels,” ranging from passive to critical. For instance, a new episode release of a favorite television program should be categorized as a “passive” notification.

Interruption Level Definitions

“Active” serves as the default setting, and notifications at this level will not interrupt a Focus mode. “Time sensitive” notifications should be reserved for genuinely urgent alerts, such as a package delivery or an important account security update. These may be permitted to bypass Focus settings, contingent on user permissions.

Critical Alerts and Potential Misuse

“Critical” notifications are intended solely for emergencies, including severe weather warnings or local safety advisories. While the possibility exists for developers to exploit the new system to ensure their alerts are delivered, doing so carries the risk of users silencing all notifications from their apps or even uninstalling them.

Users of Focus mode are generally more technically proficient and discerning, and will likely recognize intentional misuse of the system as a deliberate choice by the developer, rather than an accidental error.

Augmented Reality

Apple has consistently expanded its suite of tools designed for the development of augmented reality applications. However, this year’s WWDC featured a significant advancement intended to streamline the AR development process for newcomers.

The introduction of RealityKit 2, alongside Apple’s new Object Capture API, empowers developers to generate 3D models rapidly, utilizing only an iPhone or iPad – or alternatively, a DSLR camera or drone if preferred.

According to Apple, this addresses a major hurdle in AR app creation: the often complex and time-consuming process of 3D model development.

Previously, this task could require substantial time investments and significant financial expenditure. Now, developers equipped with just an iPhone and a Mac can readily engage in 3D model creation.

The ramifications of this update are anticipated to unfold over the coming months and years.

As developers integrate these new tools, we can expect to see innovations in areas such as AR shopping, gaming, and a wider range of AR experiences.

Furthermore, this increased accessibility to AR technology and frameworks may foster the emergence of entirely novel applications that were previously unattainable.

Impact of Object Capture API

The Object Capture API significantly lowers the barrier to entry for AR development. It allows for the quick digitization of real-world objects.

This capability is particularly valuable for applications requiring realistic representations of physical items, such as e-commerce or interior design.

By simplifying the 3D modeling workflow, Apple is encouraging a broader range of developers to explore the potential of augmented reality.

• Reduced development time
• Lower costs for 3D assets
• Increased accessibility for indie developers

These factors collectively contribute to a more vibrant and innovative AR ecosystem.

SharePlay

The introduction of SharePlay represents a noteworthy update, arriving somewhat unexpectedly and despite a missed opportunity for an optimal launch during the height of the pandemic in 2020. Through SharePlay, application developers gain the ability to integrate their apps into what Apple terms “Group Activities” – shared experiences occurring directly within FaceTime.

Those familiar with co-watching platforms like Hulu during periods of social distancing will grasp the concept. However, Apple isn’t simply adding a co-viewing feature. Instead, the company is unveiling new APIs that empower users to enjoy music, stream videos, or share their screens with friends in a manner that feels seamlessly integrated with FaceTime. The update subtly acknowledges the constraints of the COVID-19 pandemic, with Apple emphasizing the creation of an experience where users feel as though they are “in the same room” – a sentiment particularly relevant during times of isolation. This sentiment likely influenced the development of these changes. Similarly, FaceTime’s recent additions of Android support and scheduled calls, clearly inspired by Zoom’s functionality, suggest a reactive approach on Apple’s part.

The immediate need for such shared experiences may be lessened as populations recover from the pandemic and resume in-person interactions. Nevertheless, the ability to utilize apps while on a FaceTime call possesses enduring value, especially among younger iPhone users. The demographic that has grown up with smartphones at increasingly younger ages tends to favor texting and FaceTime over traditional phone calls. Some even contend that Gen Z prefers the latter.

SharePlay’s initial success will be bolstered by its immediate compatibility with Apple services like Apple Music and Apple TV+. However, its full potential will only be realized through widespread developer adoption. This type of system is arguably feasible due to Apple’s stringent control over its platform. It also provides a distinct advantage to native iOS applications over third-party alternatives.

Further Updates

This week’s announcements encompassed hundreds of updates, including Spatial Audio, Focus modes, AirPods enhancements, iPadOS improvements (introducing widgets and multi-tasking), Health updates, iCloud+ with Private Relay, watchOS advancements, Spotlight’s upgrade, macOS 12 Monterey (featuring Continuity with Universal Control), HomePod updates, StoreKit 2, Screen Time APIs, ShazamKit, App Clips improvements, and enhancements to Photos, among others.

Many of these updates are incremental improvements – such as a refined version of Apple Maps or Siri support for third-party devices. Others represent Apple’s efforts to align with competitors, like the Google Lens-inspired “Live Text” feature for interacting with content captured in photos. The more substantial changes, however, are still forthcoming, including the planned integration of Driver’s Licenses into Wallet and the transition to passwordless authentication systems. These developments promise to reshape how we interact with devices in the years ahead.

Weekly News

Platforms: Google

✨ In response to WWDC (though not to be overshadowed by it), Google this week released Android 12, beta 2. This version introduces more of the new features and design modifications that were not yet available in the initial beta, which debuted at Google I/O. These include a new privacy dashboard, indicators for microphone and camera usage, a notification when the clipboard is accessed, and a streamlined panel for managing internet connections or Wi-Fi networks.

Google also unveiled its latest Pixel feature drop this week, bringing new camera and photo capabilities, privacy features, and improvements to Google Assistant. Notable additions include the ability to create time-lapse videos of the night sky, a car crash detection feature, and hands-free call answering and rejection.

E-commerce

Pinterest is aiming to increase user engagement with its shopping features. The company introduced a new Shopping List feature this week, which automatically organizes saved Product Pins for easy access.

Augmented Reality

Google has discontinued its AR-based Measure app, which allowed users to measure real-world objects using their phone’s camera. The app had previously experienced issues with stability and accuracy.

Fintech

Facebook’s Messenger app now supports Venmo-like QR codes for peer-to-peer payments within the U.S. Users can scan these codes to send or request payments, even without being Facebook friends. Payments are processed through Facebook Pay, linked to a user’s credit card, debit card, or PayPal account.

Fintech app downloads have increased by 132% year-over-year globally, according to an AppsFlyer marketing report.

Jack Dorsey, CEO of Twitter and Square, stated that Square is exploring the possibility of adding a Bitcoin hardware wallet to its product lineup. He outlined his reasoning in a series of tweets.

✨ Social: Creator Week Summary

Instagram’s Adam Mosseri announced that Facebook will assist creators in mitigating Apple’s 30% commission. While transactions within iOS will adhere to Apple’s guidelines, Mosseri stated that Facebook will explore alternative methods to support creator income without requiring them to forfeit a portion of their earnings – such as facilitating brand-creator collaborations offline or through affiliate deals.

During its Creator Week event, Instagram announced the testing of a native affiliate tool, enabling creators to recommend products and earn commissions on sales. Creators can now also link their merch shops to personal profiles, in addition to business profiles, and will be able to collaborate on merchandise and limited-edition drops with companies like Bravado/UMG, Fanjoy, Represent, and Spring by the end of the year.

Instagram also introduced a new “badge” feature for live videos, allowing viewers to tip creators, similar to Facebook’s Stars. Facebook also announced that paid online events, fan subscriptions, badges, and its upcoming news products will remain free through 2023. Additionally, it launched new features and challenges to help creators earn additional payouts for achieving specific milestones.

Finally, Instagram published a blog post detailing how its algorithm functions. The post explains how the app determines which content to display first, why some posts receive more views than others, how Explore works, and other relevant topics.

Messaging

Giphy’s Clips (GIFs with sound) are now available within the Giphy iMessage app, rather than being limited to the web and its iOS app. This allows users to send these…uh, videos (??)…directly from their keyboard.

Dating

Match-owned dating app Tinder added a feature allowing users to block contacts. This feature requires users to grant the app permission to access their phone’s contacts, raising some privacy concerns. However, it enables users to block exes and potential abusers. Conversely, it could also facilitate infidelity, as users can block partners and individuals who might report their activity.

Streaming & Entertainment

YouTube will enable creators to repurpose audio from existing YouTube videos for its “Shorts” product – its TikTok competitor – as the platform expands to more global markets.

Gaming

Google’s cross-platform cloud gaming service, Google Stadia, will be available on Chromecast with Google TV and Android TV starting June 23.

Roblox is generating an estimated $3.01 million in daily revenue on iPhone, according to data from Finbold. Clash of Clans, Candy Crush Saga, Pokémon GO, and others follow. This is particularly relevant given the ongoing legal dispute regarding music usage.

Utilities

Apple’s weather app, Dark Sky, whose technology powered a significant iOS 15 update to Apple’s native weather app, will not be shutting down immediately. The company announced that its iOS app, web app, and API will remain online through the end of 2022, extending the original shutdown date of 2021.

Productivity

Microsoft’s Outlook email app for iOS now supports voice-to-text for composing emails and scheduling meetings. This feature leverages Cortana and follows the launch of Play My Emails within Outlook Mobile.

Government & Policy

President Biden revoked and replaced Trump’s actions targeting Chinese apps, such as TikTok and WeChat. The president signed a new executive order requiring the Commerce Department to review apps with ties to “foreign adversaries” that may pose national security risks. Trump’s previous attempt to ban these apps was blocked by federal courts.

Google has agreed to present a wider selection of mobile search apps to users on new Android phones, following feedback from the European Commission. Previously, app providers bid for a prominent slot, paying only if users downloaded their apps. DuckDuckGo and others argued that this system was ineffective.

Security & Privacy

Security vulnerabilities were discovered in Samsung’s stock mobile apps, affecting some Galaxy devices. One flaw could have enabled data theft through the Secure Folder app. Samsung Knox security software could have been exploited to install malicious apps. A bug in Samsung Dex could have scraped data from notifications. There is no indication that users were affected, and the vulnerabilities have been patched.

An App Store analysis by The Washington Post revealed that nearly 2% of the top-grossing apps on a given day were scam apps, costing users $48 million. These included VPN apps falsely claiming iPhones were infected with viruses, QR code readers tricking customers into subscriptions, and apps impersonating well-known brands like Amazon and Samsung.

Multiple apps were removed from the Chinese app store for violating data collection regulations, Reuters reported. The apps belonged to Sogou, iFlytek, and others, and included virtual keyboards.

Funding and M&A

💰 Mexican payments app Clip secured $250 million from SoftBank’s Latin American Fund and Viking Global Investors, valuing the business at $2 billion. The app offers a Square-like credit card reader and other services, and has begun offering cash advances to clients.

🤝 Shopify acquired the team behind the augmented reality home design app Primer. The app, which will be discontinued, allowed users to visualize how tile, wallpaper, or paint would look in their homes.

💰 Singapore-based corporate services “super app” Osome raised $16 million in Series A funding. The app provides online accounting and other business services for SMBs. Investors include Target Global, AltaIR Capital, Phystech Ventures, S16VC, and VC Peng T. Ong.

📈  Chinese grocery delivery app Dingdong Maicai, backed by Sequoia and Tiger Global, has filed for a U.S. IPO. The company has raised $1 billion to date.

💰 San Francisco-based MaintainX raised $39 million in Series B funding led by Bessemer Venture Partners for its mobile-first platform for industrial and frontline workers, designed to track maintenance, safety, and operations.

💰 Berlin’s Ada Health secured $90 million in Series B funding in a round led by Leaps by Bayer, the impact investment arm of Bayer AG. The app allows users to monitor their symptoms and track their health and clinical data.

💰 Photo app Dispo confirmed its previously reported Series A funding, which earlier reports estimated at around $20 million. The app was rebranded from David’s Disposable and distanced itself from YouTuber David Dobrik following sexual assault allegations involving a member of the Vlog Squad. Spark Capital severed ties with Dispo as a result. Seven Seven Six and Unshackled Ventures remained listed as investors, according to Dispo’s press release, though the company did not confirm the round’s size.

💰 Brazilian fintech Nubank raised a $750 million extension to its Series G (which was $400 million last year) led by Berkshire Hathaway. The company offers a digital bank account accessible via an app, along with debit cards, payments, loans, insurance, and more. This funding brings the company’s valuation to $1.15 billion.

💰 Seattle-based tutoring app Kadama raised $1.7 million in seed funding led by Grishin Robotics. The app, offering an online tutoring marketplace aimed at Gen Z, benefited from the surge in remote learning and became the No. 2 app in the Education category on the App Store.

📈  Mark Cuban’s banking app Dave, which helps Americans build financial stability, is planning to go public via a SPAC launched by Chicago-based Victory Park Capital called VPC Impact Acquisition Holdings III. The deal includes a $210 million private investment from Tiger Global Management.

🤝  Mobile game publisher Voodoo acquired Tel Aviv-based marketing automation platform Bidshake for an undisclosed sum. Launched in January 2020, Bidshake combines data aggregation and analytics with campaign and creative management. It will continue to operate independently.

Downloads

Turntable — tt.fm

The newly launched music social network tt.fm is a competitor to Turntable.fm, allowing users to virtually hang out with friends while listening to music. To clarify, this app is distinct from the original Turntable.fm, which shut down in 2013 but was revived during the pandemic as people sought online connection. While the earlier Turntable was resurrected by its founder Billy Chasen, tt.fm is the creation of Joseph Perla, a former employee of the original Turntable.fm. However, with live events returning, the question now is whether the Turntable.fm experience has missed its optimal launch window…again.

SketchAR

The art app SketchAR previously provided artists with tools for AR drawing, photo transformation into AR, AR mask creation for Snapchat, and gaming features. With its latest update, artists can now convert their artwork into NFTs directly within the app and sell it. The app, currently used by nearly 500,000 users, will select a “Creator of the Week” to feature on OpenSea. Other artists can create and auction their art as NFTs on demand.

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