The App Boom Hits A Downward Spiral

by CXOtoday News Desk    Jun 10, 2016

app economy

In the era of digitization, there is a drastic slag in smartphone application installation. With the introduction of the App Store by Apple, the mobile app boom kicked off in July 2008 which is now at its downfall. Though people are downloading mobile apps quite often, the craze for downloading new app is somewhat gone, rather it has become stagnant.

According to recent statistics, apps now represent 52 per cent of the time spent with digital media in the US, according to comScore, up from 40 per cent in early 2013. Apple boasted 75 billion all-time App Store downloads at its developers conference in June, and followed up by declaring July as the best month ever for App Store revenue, with a record number of people downloading apps.

Despite that, there have been months when US smartphone owners download zero apps, according to comScore’s new mobile app report.

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According to Nomura’s recent research report, the top 15 app publishers saw downloads drop an average of 20 per cent in the U.S, which relies on data from app tracker SensorTower.

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Globally, the mobile phone market is still growing, so is the app market. But it sure is a slow growth. Outside the U.S., the top 15 apps grew by 3 per cent last month.

Despite a slowdown in the app market, Uber and Snapchat are still growing at an astonishing pace. Even the growth rate of Snapchat users in US is higher than of Facebook users.

In May 2015, users downloaded Evan Spiegel’s messaging app 13 million times; in May 2016 that number had doubled to 27 million. Uber’s growth rate is also above 100 per cent. 

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Download for sure does not show a full picture of an app publisher’s business. Despite Snapchat overpowering Facebook at installation numbers, however in terms of popularity and time span of usage, Facebook is killing it. The slow numbers in installing is because Facebook already owns 1.65 billion users thus it is harder to find new ones.

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 Also read: The Smartphone Era Isn’t Going To Die, Here’s Why