App stores saw record 204 billion app downloads in 2019, consumer spend of $120 billion

Consumers downloaded a record 204 billion apps in 2019, up 6% from 2018 and up 45% since 2016, and spent $ 120 billion on apps, subscriptions and other in-app spending in the past year. The average mobile user, meanwhile, is spending 3.7 hours per day using apps. This data and more comes from App Annie’s annual report, “State of Mobile,” which highlights the biggest app trends for the past year, and sets forecasts for the years ahead.

According to App Annie, the record growth in mobile downloads in 2019 can be attributed to the growth taking place in emerging markets like India, Brazil and Indonesia, which have seen downloads soar 190%, 40% and 70%, respectively, since 2016. Meanwhile, download growth in the U.S. has slowed to just 5% during that same time, while China saw 80% growth.

 

That doesn’t mean users in mature markets aren’t downloading apps, only that the growth in year-over-year download numbers is starting to level off. Still, these more mature markets continue to see large numbers of installs, with more than 12.3 billion downloads in the U.S. in 2019, 2.5 billion in Japan and 2 billion in South Korea.

The record numbers are notable also, given that App Annie’s analysis excludes re-installs and app updates.

App store consumer spending was on the rise in 2019, as well, with $ 120 billion spent on apps — a figure that’s up 2.1x from 2016. Games continue to account for the majority (72%) of that spending, but the shift toward subscriptions has played a role, too. Last year, subscriptions in non-gaming apps accounted for 28% of consumer spending, up from 18% in 2016.

Subscriptions are now the primary way many non-gaming apps generate revenue. For example, 97% of consumer spending in the top 250 U.S. iOS apps was driven by subscriptions, and 94% of the apps used subscriptions. On Google Play, 91% of the consumer spending was subscription-based, while 79% of the top 250 apps used subscriptions.

In particular, dating apps like Tinder and video apps like Netflix and Tencent Video topped 2019’s consumer spend charts, thanks to subscription revenue.

 

Mature markets, including the U.S., Japan, South Korea and the U.K. are helping to fuel consumer spending across both games and subscriptions, App Annie found. But China remains the largest market by far, accounting for 40% of global spend.

App Annie also forecast that the mobile industry will contribute $ 4.8 trillion to the global GDP by 2023.

The report additionally identified several mobile trends from 2019, including the mobile app connection to the Internet of Things and smart home devices (106 million downloads for the top 20 IoT apps last year); the huge mobile engagement by Gen Z (3.8 hours per app per month, among the top 25 non-game apps, on avgerage); and mobile ad spend’s growth ($ 190 billion in 2019 to $ 240 billion in 2020).

Ad spending combined with consumer spending is expected to reach $ 380 billion worldwide by 2020, App Annie forecast.

Gaming was given a big breakout section, given its contribution to consumer spending.

Consumer spending in mobile gaming was 2.4x that of Mac/PC gaming, and 2.9x more than game consoles. In 2019, mobile gaming saw 25% more spending than all other gaming, and is on track to surpass $ 100 billion across all app stores by next year.

Casual gaming (led by Puzzle and Arcade) was the most downloaded type of games in 2019. Meanwhile, core games (e.g. Action, RPG, etc.) — which were only 18% of downloads — accounted for 55% of time spent in top games. PUBG Mobile was the No. 1 core game (action) on Android in 2019, in terms of time spent, while Anipop (puzzle) was the top casual game.

Core games also accounted for the majority (76%) of game spending, followed by casual (18%), then casino (6%).

In 2019, 17% more games surpassed $ 5 million in consumer spending versus 2017. And the number of games to top $ 100 million grew 59% compared to two years prior. Despite the sizable growth in revenues, App Annie also pointed to new models in mobile gaming, like Apple Arcade, which is giving other types of games a chance to thrive. Unfortunately, no third-party firm is able to track Arcade revenues, which will become a glaring blind spot for App Annie in the years ahead.

App Annie also examined other sizable segments of the mobile market for trends, including fintech, retail, streaming and social. Some of the more significant findings included: the fintech app user base growth topping that of traditional banking apps; shopping app downloads saw 20% year-over-year growth to reach 5.4 billion downloads; streaming growth that included 50% sessions in 2019 compared to 2017; and 50% of time spent on mobile was spent in social networking and communication apps.

TikTok was given special attention, given its rapid growth last year. Time spent in the short-form video app grew 210% year-over-year in 2019 globally. Even though eight out of every 10 minutes spent in TikTok were by users in China, the app’s usage skyrocketed in other markets as well, App Annie said.

Industries App Annie identified as being transformed by mobile in 2019 included ridesharing, fast food/food delivery, dating, sports streaming, plus health and fitness. The full report offers a few more details and mobile trends for each of these.

One bigger highlight was that digital-first shopping apps still had 3.2x more average monthly sessions per user compared with apps from traditional brick-and-mortar retailers (dubbed “bricks-and-clicks” apps in the report).

App Annie also compiled its own list of the top apps of 2019 by active users, downloads and revenue. Facebook apps still led by engagement, with WhatsApp, Facebook and Messenger in the top three spots and Instagram as No. 5. And they maintained similar positions by downloads, only swapping places with one another.

Consumer spending was a different story, with Tinder generating the most revenue in 2019, followed by entertainment and streaming apps like Netflix, Tencent Video, iQIYI, YouTube and others.


Android – TechCrunch

This Week in Apps: App trends from 2019, Pinterest tops Snapchat, Disney+ hits No. 1 in Q4

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all.

The app industry is as hot as ever with a record 204 billion downloads in 2019 and $ 120 billion in consumer spending in 2019, according to App Annie’s recently released “State of Mobile” annual report. People are now spending 3 hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $ 544 billion valuation, 6.5x higher than those without a mobile focus.

In this Extra Crunch series, we help you to keep up with the latest news from the world of apps, delivered on a weekly basis.

This week, we dig into App Annie’s new “State of Mobile 2019” report and other app trends. We’re also seeing big gains for TikTok in 2019 and Disney+ in Q4. Both Apple and Google announced acquisitions this week that have implications for the mobile industry, as well.


Android – TechCrunch

US patents hit record 333,530 granted in 2019; IBM, Samsung (not the FAANGs) lead the pack

We may have moved on from a nearly-daily cycle of news involving tech giants sparring in courts over intellectual property infringement, but patents continue to be a major cornerstone of how companies and people measure their progress and create moats around the work that they have done in hopes of building that into profitable enterprises in the future. IFI Claims, a company that tracks patent activity in the US, released its annual tally of IP work today underscoring that theme: it noted that 2019 saw a new high-watermark of 333,530 patents granted by the US Patent and Trademark Office.

The figures are notable for a few reasons. One is that this is the most patents ever granted in a single year; and the second that this represents a 15% jump on a year before. The high overall number speaks to the enduring interest in safeguarding IP, while the 15% jump has to do with the fact that patent numbers actually dipped last year (down 3.5%) while the number that were filed and still in application form (not granted) was bigger than ever. If we can draw something from that, it might be that filers and the USPTO were both taking a little more time to file and process, not a reduction in the use of patents altogether.

But patents do not tell the whole story in another very important regard.

Namely, the world’s most valuable, and most high profile tech companies are not always the ones that rank the highest in patents filed.

Consider the so-called FAANG group, Facebook, Apple, Amazon, Netflix and Google: Facebook is at number-36 (one of the fastest movers but still not top 10) with 989 patents; Apple is at number-seven with 2,490 patents; Amazon is at number-nine with 2,427 patents; Netflix doesn’t make the top 50 at all; and the Android, search and advertising behemoth Google is merely at slot 15 with 2,102 patents (and no special mention for growth).

Indeed, the fact that one of the oldest tech companies, IBM, is also the biggest patent filer almost seems ironic in that regard.

As with previous years — the last 27, to be exact — IBM has continued to hold on to the top spot for patents granted, with 9,262 in total for the year. Samsung Electronics, at 6,469, is a distant second.

These numbers, again, don’t tell the whole story: IFI Claims notes that Samsung ranks number-one when you consider all active patent “families”, which might get filed across a number of divisions (for example a Samsung Electronics subsidiary filing separately) and count the overall number of patents to date (versus those filed this year). In this regard, Samsung stands at 76,638, with IBM the distant number-two at 37,304 patent families.

Part of this can be explained when you consider their businesses: Samsung makes a huge range of consumer and enterprise products. IBM, on the other hand, essentially moved out of the consumer electronics market years ago and these days mostly focuses on enterprise and B2B and far less hardware. That means a much smaller priority placed on that kind of R&D, and subsequent range of families.

Two other areas that are worth tracking are biggest movers and technology trends.

In the first of these, it’s very interesting to see a car company rising to the top. Kia jumped 58 places and is now at number-41 (921 patents) — notable when you think about how cars are the next “hardware” and that we are entering a pretty exciting phase of connected vehicles, self-driving and alternative energy to propel them.

Others rounding out fastest-growing were Hewlett Packard Enterprise, up 28 places to number-48 (794 patents); Facebook, up 22 places to number-36 (989 patents); Micron Technology, up nine places to number-25 (1,268), Huawei, up six places to number-10 (2,418), BOE Technology, up four places to number-13 (2,177), and Microsoft, up three places to number-4 (3,081 patents).

In terms of technology trends, IFI looks over a period of five years, where there is now a strong current of medical and biotechnology innovation running through the list right now, with hybrid plant creation topping the list of trending technology, followed by CRISPR gene-editing technology, and then medicinal preparations (led by cancer therapies). “Tech” in the computer processor sense only starts at number-four with dashboards and other car-related tech; with quantum computing, 3-D printing and flying vehicle tech all also featuring.

Indeed, if you have wondered if we are in a fallow period of innovation in mobile, internet and straight computer technology… look no further than this list to prove out that thought.

Unsurprisingly, US companies account for 49% of U.S. patents granted in 2019 up from 46 percent a year before. Japan accounts for 16% to be the second-largest, with South Korea at 7% (Samsung carrying a big part of that, I’m guessing), and China passing Germany to be at number-four with 5%.

  1. International Business Machines Corp 9262
  2. Samsung Electronics Co Ltd 6469
  3. Canon Inc 3548
  4. Microsoft Technology Licensing LLC 3081
  5. Intel Corp 3020
  6. LG Electronics Inc 2805
  7. Apple Inc 2490
  8. Ford Global Technologies LLC 2468
  9. Amazon Technologies Inc 2427
  10. Huawei Technologies Co Ltd 2418
  11. Qualcomm Inc 2348
  12. Taiwan Semiconductor Manufacturing Co TSMC Ltd 2331
  13. BOE Technology Group Co Ltd 2177
  14. Sony Corp 2142
  15. Google LLC 2102
  16. Toyota Motor Corp 2034
  17. Samsung Display Co Ltd 1946
  18. General Electric Co 1818
  19. Telefonaktiebolaget LM Ericsson AB 1607
  20. Hyundai Motor Co 1504
  21. Panasonic Intellectual Property Management Co Ltd 1387
  22. Boeing Co 1383
  23. Seiko Epson Corp 1345
  24. GM Global Technology Operations LLC 1285
  25. Micron Technology Inc 1268
  26. United Technologies Corp 1252
  27. Mitsubishi Electric Corp 1244
  28. Toshiba Corp 1170
  29. AT&T Intellectual Property I LP 1158
  30. Robert Bosch GmbH 1107
  31. Honda Motor Co Ltd 1080
  32. Denso Corp 1052
  33. Cisco Technology Inc 1050
  34. Halliburton Energy Services Inc 1020
  35. Fujitsu Ltd 1008
  36. Facebook Inc 989
  37. Ricoh Co Ltd 980
  38. Koninklijke Philips NV 973
  39. EMC IP Holding Co LLC 926
  40. NEC Corp 923
  41. Kia Motors Corp 921
  42. Texas Instruments Inc 894
  43. LG Display Co Ltd 865
  44. Oracle International Corp 847
  45. Murata Manufacturing Co Ltd 842
  46. Sharp Corp 819
  47. SK Hynix Inc 798
  48. Hewlett Packard Enterprise Development LP 794
  49. Fujifilm Corp 791
  50. LG Chem Ltd 791


Android – TechCrunch

Samsung shipped more than 6.7 million Galaxy 5G smartphones in 2019

Samsung Electronics announced today that it shipped more than 6.7 million Galaxy 5G smartphones in 2019, surpassing expectations set by the company earlier.

In September, Samsung Electronics vice president JuneHee Lee suggested that more than two million Samsung 5G smartphones had already been sold during remarks at IFA, and that the company expected to double that number by the end of the year.

The company also said today that its devices made up 53.9% of the global 5G smartphone market, according to a report by Counterpoint Research. It will release its next 5G device, the Galaxy Tab S6 5G, in South Korea during the first quarter of 2020.

The company is expected to launch Galaxy S11 models with 5G in February. While no iPhones currently have 5G support, Apple analyst Ming-Chi Kuo forecast in July that all three versions of the device expected to be unveiled by Apple this year will support 5G. The release of Qualcomm’s Snapdragon 865 and 765 means more manufacturers will be able to offer mid- and high-tier smartphones with 5G support this year, and that may help revive sluggish sales.

Gadgets – TechCrunch