This Week in Apps recaps the latest in mobile OS news, mobile applications and the overall app economy.
According to the latest year-end reports, the app industry has continued to grow, with a record number of downloads and consumer spending across both the Apple and Google Play stores. In the year 2021, global spending on third-party app stores in China grew 19% to reach $170 billion. Downloads of apps grew by 5%, reaching 230 billion in 2021, and mobile ad spend grew 23% year over year to reach $295 billion.
Consumers now spend more time in apps than ever before, even topping the time they spend watching TV. The average American watches 3.1 hours of TV per day, but they spend 4.1 hours on their mobile device in the year 2021. They are not the world's heaviest mobile users. Users in Brazil, Indonesia, and South Korea spent five hours per day on mobile apps.
It's not just a way to pass time. They can become big businesses. There were 233 apps and games that generated over $100 million in consumer spend. This was up 20% from the year before, when just eight apps topped $1 billion.
This Week in Apps offers a way to keep up with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps to try, too.
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Top Stories
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When price increases are involved, Apple may be changing how it operates. Some developers noticed that the Disney+ service was only notifying users of upcoming price changes, then automatically opting them in. This is different from how subscription price increases would be handled. If a customer wants to agree to the new, higher price or cancel the service, they can visit the subscriptions management page. If customers ignore the warning, the subscription will be canceled on their behalf.
The feature was first spotted when developers noticed Disney+ seemed to inform them about a subscription price increase, but not require them to agree to the new pricing for the subscription to continue. It's easy to see how unscrupulous developers could use this feature to raise prices by much higher amounts without users knowing.
Apple confirmed that the new option is still in pilot testing, even though the developer documentation doesn't reference it yet. An Apple representative said:
We are piloting a new commerce feature we plan to launch very soon. The pilot includes developers across various app categories, organization sizes, and regions to help test an upcoming enhancement that we believe will be great for both developers and users, and we’ll have more details to share in the coming weeks.
There are still a number of questions, like how apps will qualify to use this commerce feature, who is already in the pilot test group, and whether or not users know about it. At a time when Apple's commission structure is under attack from lawmakers and regulators in global markets, the pilot arrives. It is interesting to note that this new commerce feature could serve as a means for Apple to retain users, rather than losing them to developers.
Elon buys a chunk of Twitter
Was there a bigger story in the tech world this week than the news that Musk bought himself $3 billion worth of the company's stock? The Telsa and SpaceX CEO became the single largest individual shareholder with a 9.2% stake in the company, and Musk was appointed to the board. Employees were concerned about what this meant for the company, given that Musk's own values are often in conflict with the values of the company. The Town Hall will address employee questions.
Musk didn't wait long to stir the pot, he sent out a poll to users as to whether or not they wanted an Edit button on the site, a continual user request that has been refused to honor due to the ramifications that a malleable. It was confirmed that the feature was in the works as a tool for the Blue subscribers.
pic.twitter.com/wcW6Z1MNNd
— Elon Musk (@elonmusk) April 7, 2022
Jack Dorsey stepped down as CEO to devote his time to Square, now called Block, after a shakeup at the company. The new CEO was made after his exit. Project Bluesky was an effort to create a protocol for social networking that would give users more control over their online experience. Musk wants to allow people to speak freely on the platform, while controlling their own product experience through user-supplied controls. The web3 initiative is about redistributing power on the web back to its users through undeserving platforms, not Big Tech-controlled portals. We will see whether it is actually achieving that.
In taking the top spot, he had lofty objectives such as doubling revenue and reaching over 300 million daily users by the year 2023. The plan to achieve its goals has been described as a throw-a-bunch-of-spaghetti-at-the-wall approach. The company said last fall that it would either kill or advance features based on user feedback. The version of Stories that was killed by Twitter was called Fleets. The company missed expectations on earnings, revenue and user growth in the fourth quarter, despite its rapid pace of new features. Even without Musk, the road was going to be difficult for the network that has failed to achieve user growth or revenue outside of ads.
It's time to get more experimental in product development according to the recent activities of the company. Outside of Spaces, a lot of what it is building now are things that still see the tweet as the core user experience.
This is a company that was early to ideas that are defining the modern-day internet.
For instance, the social network closed down its short-form video service, which was called "vine" and was a home to short-form video content. Ahead of the growth of the video-first creator economy and the mainstream adoption of live shopping services, the dedicated app for live video, Periscope, was shut down. Musical.ly-turned-TikTok figured out how to use the intersection of pop culture, music and social networking to create a product that now has massive influence over a half dozen years after the demise of the dedicated app for music discovery.
Instead of following different paths, the core of the service has remained the same, which is a place where other forms of media are. Live video can be found buried in the camera feature's switcher and not often used by regular tweeters.
Maybe it was time to shake up the service with new ideas that would bring in new users and not just serve existing users. Maybe Musk isn't the right person for that job. His experience doesn't represent the everyday user. His involvement could distract the company from its current objectives.
Musk's influence on the social media site is completely unpredictable in the months to come. It's not clear whether or not the product or user experience will be better off for it. Everyone can agree that the future of Twitter will be exciting.
Weekly News
The image is from Apple.
- Apple announced that WWDC would return again as an online-only event (“Call to Code”) running from June 6-10. However, the company noted it would also host a special day for developers and students at Apple Park on June 6 to watch the keynote and State of the Union videos together. Space for this event will be limited and details on how to apply to attend will be provided soon, Apple said. The company, for the third year, will support student developers through its Swift Student Challenge, as well.
- Apple released another commissioned report by Analysis Group which aimed to prove that Apple’s own apps account for a relatively small share of usage among iPhone users, even when they’re preinstalled. The company is under pressure from regulators who are investigating whether it’s using its platform and market power to give itself an unfair advantage over rivals. The data is meant to show it’s not. However, what a report like this doesn’t account for is the fact that Apple’s apps don’t have to win because Apple takes a commission on the revenue generated by its competitors’ businesses, as well.
- Apple released iOS 15.5 beta 1, alongside the first betas for iPadOS 15.5, watchOS 8.6 and macOS 12.4. The iOS beta now allows reader apps to display external links to redirect users to their websites for account management and added Apple Pay and Wallet updates, among other things. The beta also included references to “Apple Classical,” believed to be the upcoming classical music service resulting from Apple’s Primephonic acquisition.
Platforms: Google
- Following Google’s deadline to shift to its own billing systems, users found they could no longer buy e-books from Audible or Barnes & Noble’s Android apps.
- Google released the Android 12 QPR3 beta 2 for Pixel devices, which includes bug fixes and security updates ahead of the public release.
E-commerce
- Indian conglomerate Tata Group takes on Walmart-owned Flipkart, Amazon and Jio Platforms with the launch of its superapp Tata Neu, offering e-commerce, grocery and hotels in one app experience.
Augmented Reality
- Snapchat launched a new Lens that teaches users American Sign Language via fingerspelling. The company partnered with SignAll and is using computer vision and machine learning to recognize users’ hand gestures. The company also reached out to marketers with its “Generation Report” which talks about how different groups of users engage with its app.
Fintech
- Robinhood said it will expand its crypto wallet to over 2 million users on its waitlist and will support transacting on the Bitcoin Lightning Network in the months to come.
- Venmo rival Zelle, backed by banks, may be expanding to retail stores, The WSJ reported. The move would put the money transfer service in direct competition with Mastercard and Visa.
- Block (formerly, Square) said its Cash App breach impacted 8.2 million users. Stolen info included the value of customer portfolios and stock trade details, names and brokerage account numbers, but didn’t involve the company’s payments system. SSNs and passwords and various other personally identifiable information were not accessed.
- A Piper Sandler survey found that Apple Pay has now surpassed Venmo and PayPal and teens’ favorite payment app.
- PayPal updated its credit card with 3% cashback on all PayPal purchases, online or off. The PayPal app was also updated with improved card management features.
Social
The image is called Peanut.
- Social network Peanut launched a new offering called Peanut Pro that connects women with information from trusted experts, including doulas, psychologists, therapists, sex coaches and sleep consultants. The experts and other creators can make money from their work through a new in-app tipping feature.
- Facebook and Instagram are developing digital tokens and “creator coins” to help diversify the social giant’s income, The FT reported, noting that employees referred to these internally as “Zuck Bucks.”
- Neighborhood social network Nextdoor launched a new advertising offering in an expansion of its self-serve campaign management platform. The new Nextdoor Ads will help SMBs leverage the platform to reach local communities in the U.S.
- Some creators are reporting Instagram had dialed back on Reels payouts, per The FT. The direct payments for short videos are designed to help Instagram help compete with TikTok for creator talent, and have reportedly dropped by up to 70%, while the view threshold for getting paid is over 10x higher.
- TikTok launched a new program that will allow creative agencies to reach its audience. The new Creative Agency Partnerships (CAP) University program is designed to help creative agencies become “TikTok experts,” through a five-week course of live webinars beginning April 19.
- TikTok again delayed opening its first European data center in Dublin, saying the center won’t be online until next year. The center would store data for EU, EEA and U.K. users in the region. Currently, this data is held in Singapore or the U.S.
- Facebook said it would not hold its developer conference F8 this year as it’s now focused on new initiatives, like the metaverse.
- Pinterest announced it will ban all climate information on its platform, including both in posts and ads. The company said it was the first major digital platform to take this step.
- Meta added the ability for users to post to Facebook Reels from third-party apps, including from launch partners like Smule, Vita and VivaVideo.
- Koo, a rival to Twitter in India, announced it would allow users to self-verify using their government-approved ID cards. The option is aimed at improving conversation health and to curb trolling, spam and bots.
- A former ByteDance employee accused the company of scraping content from rivals like Instagram and Snapchat to make fake accounts on its video app, Flipagram, a TikTok predecessor.
- College-friendly social app BeReal has increased user growth 315% year-to-date, per Apptopia. The a16z-backed app pushes users to post just once per day and has seen 65% of its downloads take place in 2022.
Photos
- Adobe Creative Cloud Express added new features to its mobile and web apps, including a library of customizable basic shapes; a new Adobe Color integration for selecting from preset palettes and themes; new Quick Actions (Crop and Resize Video) on iOS; and more.
Messaging
- U.S. record keepers, including the National Archives and Records Administration, said they’re worried that Wickr and other messaging apps offering auto-deletion help agencies, such as CBP, sidestep transparency requirements.
Streaming & Entertainment
@danieljmertzlufft “For You, Paige” #projectbroadway #musicaltheatre #foryoupaige #broadway @romanwbanks @sri @tiktok ♬ original sound – danieljmertzlufft
- TikTok funds its first original musical from the creative lead Daniel Mertzlufft, behind the user-led “Ratatouille: The TikTok Musical.” The show, “For You, Paige,” will livestream on the app on April 14 at 7 PM and will be performed live in NYC. The success follows “The Unofficial Bridgerton Musical,” which originated on TikTok and won a Grammy.
- Clubhouse added support for spatial audio. The company says the technology is a “great way to make conversations on the app feel more authentic.”
- Amazon said it’s increasing its Music Unlimited plan for Prime members on May 5. The plan price is going from $7.99 to $8.99 per month, or from $79 to $89 per year for Prime members The Single-Device plan, which only allows you to stream music from an Echo device or Fire TV, is going from $3.99 to $4.99 per month.
- Hulu added support for Apple’s SharePlay to its streaming app, following parent company Disney’s recent move to add SharePlay to ESPN+ and, as of late last year, Disney+.
- Spotify began testing a new “Featured Creators” feature that promotes popular user-created playlists in the app alongside its own. It also began testing a TikTok-like feed for music discovery.
Gaming
- Fortnite maker Epic Games partnered with Lego to build a metaverse for children. The digital experience will allow children to play safely online. The company additionally announced the raise of $144 million for Ukraine relief efforts.
- Rovio’s Angry Birds Classic returned to the App Store with a new engine and no in-app purchases.
Travel & Transportation
- Uber this week announced it’s adding buses, planes and car rentals to its U.K. app through partnerships with other companies. Users will be able to purchase tickets in the app. If successful, the plan is to roll out similar “super app” functionality to more countries.
Productivity & Utilities
The image is from the internet search engine, Google.
- Google launched “multisearch” for Google Lens, available in the Google app for iOS and Android. The feature allows users to use a combination of text along with photos and screenshots when searching the web.
- Google updated its Google Maps app with a number of new features, including the ability to get directions from Maps directly on the Apple Watch. Other updates included a new pinned trip widget and toll prices.
Government & Policy
- Apple returned a Putin opposition app to the App Store. The voting app was run by supporters of Putin critic Alexei Navalny, but was removed from the App Store and Google Play after Russia said it would prosecute local Apple and Google employees.
- South Korea said Google is not allowed to block developers from providing an in-app link to an outside website for purchasing digital goods under the country’s new app payments law. Google was preparing to enact its new digital billing policy requiring apps to use its own payments system.
- Taking aim at Russia, Twitter placed new limits on government accounts engaged in propaganda and censorship while at war. To meet Twitter’s threshold for limitations, a country’s censorship of online information must impact either the majority of its population or severely limit a smaller group of people within its borders. Twitter also banned state-linked accounts from sharing PoW imagery with abusive intent.
- Facebook and Instagram had censored hashtags related to Russian massacres of Ukrainian civilians, but later unblocked them after being called out by the press. Among the tags were #RussianWarCrimes, #Bucha and #BuchaMassacre.
Security & Privacy
- Google removed dozens of Android apps from the Play Store, totaling over 10 million installs, after researchers discovered the apps included data-harvesting software tied to U.S. national security contractors. The apps included Mulsim prayer apps, a speed-trap detection app, QR-code reading apps and others.
Recommended Reading
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Funding and M&A
Tiger Global led a $40 million Series B funding for OpenPhone to replace employees with a mobile app. Users of the system have a dedicated work number and tools for communicating with colleagues and customers.
Shein raised between $1-2 billion in a round closed last week, making it more valuable than H&M and Zara combined. General Atlantic was involved in the round along with previous Shein investors Tiger Global Management and Sequoia Capital China.
The Series B funding was led by Balderton Capital. 70% of the company's customers still access healthcare through in-person appointments, and the company pairs its service with physical clinics.
Thunkable raised $30 million in Series B funding. 3 million users and 6 million apps have been developed by the startup.
VerSe Innovation, the parent company of news aggregation app Dailyhunt and short video app Josh, raised $805 million in a Series J round of funding. The company is worth nearly $5 billion.
New Zealand-based augmented reality studio NZXR has been acquired by Niantic Labs. The startup will work with Niantic to develop real-world augmented reality experiences.
The seed funding for the app was raised from Agya, Gaingels, Goodwater Capital, Nomo, PKO Investments and Y Combinator. The app can be used by agents to create content related to home-buying.
Fintech Gotrade, an app that lets international users buy fractional shares of U.S. stocks, raised $15.5 million in Series A funding. The company has transacted $400 million across 5 million trades.
Downloads
A new 3D scanning app called RealityScan was introduced this week by the maker of the hit video game. The goal of the app is to allow more people to enter the world of 3D photogrammetry to create virtual objects. The app will guide the user through the scanning experience with interactive feedback, augmented reality guidance and data-quality checks. When scanning is complete, the assets can be exported to Sketchfab, a platform for publishing, sharing and selling 3D, virtual reality and augmented reality content. RealityScan will be free for the first 10,000 users, and will be released to Early Access this spring. Later in the year, there will be an operating system called Android.