This Week in Apps: PayPal, Twitter, Apple - Tech News

The Expanding App Universe: A Weekly Recap

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

The app industry demonstrates continued growth, achieving a record 218 billion downloads and $143 billion in global consumer spending in 2020. Android devices alone saw 3.5 trillion minutes of app usage last year. Currently, average daily app usage in the U.S. is four hours, exceeding the 3.7 hours spent watching live television.

The Business of Apps

Apps are not merely a source of entertainment; they represent a significant commercial opportunity. Mobile-first companies boasted a combined valuation of $544 billion in 2019, a figure 6.5 times greater than their non-mobile-focused counterparts. Investment in mobile companies reached $73 billion in 2020, marking a 27% year-over-year increase.

This Week in Apps provides a centralized resource for staying informed about this rapidly evolving industry, including news, updates, funding announcements, mergers and acquisitions, and recommendations for new apps and games.

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Top Stories

Epic Games Challenges Apple on Fortnite’s Return

Following the court’s decision in the Epic-Apple antitrust case, Epic Games CEO Tim Sweeney requested Apple reinstate Epic’s developer account. However, given Epic’s intention to appeal the ruling, Apple informed the company that reinstatement would be delayed until the appeals process concludes. This effectively means Fortnite may remain unavailable on iOS for years, pending the final appeal decision.

Sweeney publicized the exchange by sharing a letter sent to Apple and the company’s response. The letter assured Apple that Fortnite would adhere to the rules, unlike its previous actions that breached the contract and initiated the lawsuit. Sweeney also confirmed the disabling of Epic’s payment server and the payment of the $6 million in court-ordered fees resulting from bypassing Apple’s in-app purchase system.

Image Credits: Tim Sweeney on Twitter (opens in a new window)

The core of the matter lies in Epic daring Apple to comply with the court’s order.

While the judge deemed Apple “not a monopoly,” a point Apple celebrated, the ruling did declare Apple’s in-app purchase (IAP) system anticompetitive. The court mandated that Apple allow developers to include buttons or links to alternative payment options outside the App Store, alongside Apple’s IAP.

Sweeney’s letter proposes that Fortnite will comply if Apple does, specifically by allowing the inclusion of buttons and links to external purchasing mechanisms. This would enable Epic to leverage the newly legal option of circumventing Apple’s IAP system.

Apple rejected this proposal, citing Epic’s past “duplicitous” behavior and stating no reinstatement would occur until the court’s decision is finalized. Sweeney shared this response, noting the potential for appeals to take up to five years.

Apple’s stance may discourage other developers from challenging its rules, but it sets the stage for Epic’s continued battle—one that extends beyond Apple and into the realm of congressional action. Epic argues that if Apple can remove a multibillion-dollar company that amended its practices, what hope do smaller developers have in challenging the tech giant? This positions Apple as a monopolist, despite the court’s ruling.

Record Q3 Projected for App Spending

A recent forecast from App Annie predicts another strong quarter for the app economy. Global consumer spending on apps and games is expected to reach $34 billion in Q3, a 20% year-over-year increase. This growth reflects the lasting impact of the COVID-19 pandemic on consumer habits regarding entertainment, shopping, work, and education.

iOS app spending is projected to grow 15% year-over-year to $22 billion, while Google Play is expected to reach around $12 billion, also a 15% increase. Gaming apps continue to dominate revenue, accounting for 66% of spending across both app stores. Non-gaming apps generate the majority of revenue on iOS, with 76% of consumer spending.

Downloads are also expected to increase by 10% year-over-year, reaching a record 36 billion, driven by growth on Google Play and in emerging markets like India and Brazil.

Weekly News

Apple Updates & News

• iOS 15, iPadOS 15, and watchOS 8 are now publicly available. iOS 15 introduces Focus modes, a redesigned Safari, and improvements to core Apple apps.
• iOS 15.1, beta 1, has been released to developers. This beta includes SharePlay, the co-viewing feature for FaceTime, and the ability to store vaccination records in the Health app.
• iOS 15 adoption is slower than iOS 14. Within the first two days, iOS 15 was adopted by 8.5% of users, compared to 14.5% for iOS 14.
• Apple rolled out StoreKit 2 and new in-app purchase capabilities. These new APIs provide developers with more control over product entitlements and subscription management.
• iOS 15 updates the App Store’s ASO. The store now hides screenshots for apps already installed, increasing visibility for others.

Image Credits: ilia kukharev on Twitter (opens in a new window)

Android Updates & News

• Google announced new Android features, including facial gesture control, Google TV control via phone, and improved Reminders integration with Google Assistant.
• Google removed a game and suspended a developer for using sexually explicit ads to promote their app.
• Android Automotive OS will be available in Honda vehicles in 2022.

E-commerce/Food Delivery

• Amazon is shutting down its Amazon Go app, integrating its functionality into the main Amazon app.
• Uber Eats added a new map feature, allowing users to search for food using keywords or emojis.

Fintech

• PayPal launched its “super app,” combining direct deposit, bill pay, a digital wallet, peer-to-peer payments, crypto capabilities, and a savings account.
• Coinbase canceled its “Lend” product following threats of an SEC lawsuit.
• Robinhood is testing a crypto wallet feature.
• Square’s payment processing app experienced a glitch, disrupting automatic tipping for service workers.
• China banned cryptocurrency transactions.

Social

Twitter added Bitcoin tipping and NFT authentication support.

Tumblr launched Post+ into open beta, allowing creators to offer exclusive content to subscribers.

Facebook’s stock declined due to Apple’s privacy changes and reporting errors.

Pinterest partnered with Albertsons to enable shoppable recipe pins.

Image Credits: Tumblr

Photos

• Apple added a setting to disable automatic macro camera switching on iPhone 13.

Messaging

• Telegram added interactive emojis, new chat themes, and livestream recording.
• WhatsApp for iOS is testing group icon customization.

Streaming & Entertainment

• Apple’s Podcasts app added personalized recommendations.
• TikTok celebrated Broadway’s return with live programming.
• Discord integrated YouTube streaming.
• Clubhouse launched Wave and hired a head of entertainment partnerships.

Gaming

• The Pokémon Trading Card Game Live is coming to multiple platforms.
• My Talking Angela 2 topped game download charts.
• Pokémon Unite reached No. 1 in downloads in over 62 countries.

Health & Fitness

• Reports surfaced of user dissatisfaction with Noom’s marketing and pricing.
• Apple’s Research app added iCloud backup for study data.

Productivity

• Google updated its iOS apps for iOS 15 compatibility.

Government & Policy

• ByteDance implemented time limits for young users on Douyin.
• An Indian antitrust probe found Google abused its market position.

Security & Privacy

• Apple improved Face ID security.
• Apple patched a zero-day vulnerability.
• A report revealed apps tracking users despite privacy settings.

Funding and M&A

Lightricks raised $130 million in Series D funding, valuing the company at $1.8 billion.

FloBiz raised $31 million in Series B funding.

Jiffy raised $28 million in Series A funding.

Remitly priced its IPO at $43 per share, valuing the business at $6.9 billion.

TAG raised $12 million in funding.

NTWRK raised $50 million from Goldman Sachs and Kering.

Downloads

Lounge (iOS, Mac, web)

Lounge launched a remote work app into open beta, creating a more social environment for smaller, fully remote teams. The app introduces virtualized “desks” and “rooms” for collaboration. Lounge is entering a public beta, requiring access requests.

Pokémon Unite (iOS and Android)

The strategic battle game, previously on Nintendo Switch, is now available on mobile. Pokémon Unite supports cross-platform play and reached No. 1 in game downloads in over 62 countries on its iOS launch day.

Amplosion

With iOS 15, Amplosion, an extension by Christian Selig, allows users to easily redirect from Google AMP pages to their standard counterparts. The extension is available for $2.99 on the App Store.

Tweets

We have to agree, this is waaaay better than “bug fixes:”

Image Credits: John Gruber on Twitter (opens in a new window)

Yes, it is:

Image Credits: David Barnard on Twitter (opens in a new window)