App stores saw record 218 billion downloads in 2020, consumer spend of $143 billion

Mobile adoption continued to grow in 2020, in part due to the market forces of the COVID-19 pandemic. According to App Annie’s annual “State of Mobile” industry report, mobile app downloads grew by 7% year-over-year to a record 218 billion in 2020. Meanwhile, consumer spending grew by 20% to also hit a new milestone of $143 billion, led by markets that included China, the United States, Japan, South Korea and the United Kingdom.

Consumers also spent 3.5 trillion minutes using apps on Android devices alone, the report found.

In another shift, app usage in the U.S. surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours on their mobile device.

The increase in time spent is a trend that’s not unique to the U.S., but can be seen across several other countries, including both developing mobile markets like Indonesia, Brazil and India, as well as places like China, Japan, South Korea, the U.K., Germany, France and others.

The trend isn’t isolated to any one demographic, either, but is seen across age groups. In the U.S., for example, Gen Z, millennials and Gen X/Baby Boomers spent 16%, 18% and 30% more time in their most-used apps year-over-year, respectively. However, what those favorite apps looked like was very different.

For Gen Z in the U.S., top apps on Android phones included Snapchat, Twitch, TikTok, Roblox and Spotify.

Millennials favored Discord, LinkedIn, PayPal, Pandora and Amazon Music.

And Gen X/Baby Boomers used Ring, Nextdoor, The Weather Channel, Kindle and ColorNote Notepad Notes.

The pandemic didn’t necessarily change how consumers were using apps in 2020, but rather accelerated mobile adoption by two to three years’ time, the report found.

Investors were also eager to fuel mobile businesses as a result, pouring $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year. According to Crunchbase data, 26% of total global funding dollars in 2020 went to businesses that included a mobile solution.

From 2016 to 2020, global funding to mobile technology companies more than doubled compared with the previous five years, and was led by financial services, transportation, commerce and shopping.

Mobile gaming adoption also continued to grow in 2020. Casual games dominated the market in terms of downloads (78%), but Core games accounted for 66% of games’ consumer spend and 55% of the time spent.

With many stuck inside due to COVID-19 lockdowns and quarantines, mobile games that offered social interaction boomed. Among Us, for example, became a breakout game in several markets in 2020, including the U.S.

Other app categories saw sizable increases over the past year, as well.

Time spent in Finance apps in 2020 was up 45% worldwide, outside of China, and participation in the stock market grew 55% on mobile, thanks to apps like Robinhood in the U.S. and others worldwide, that democratized investing and trading.

TikTok had a big year, too.

The app saw incredible 325% year-over-year growth, despite a ban in India, and ranked in the top five apps by time spent. The average monthly time spent per user also grew faster than nearly every other app analyzed, including 65% in the U.S. and 80% in the U.K., surpassing Facebook. TikTok is now on track to hit 1.2 billion active users in 2021, App Annie forecasts.

Other video services boomed in 2020, thanks to a combination of new market entrants and a lot of time spent at home. Consumers spent 40% more hours streaming on mobile devices, with time spent in streaming apps peaking in the second quarter in the west as the pandemic forced people inside.

YouTube benefitted from this trend, as it became the No. 1 streaming app by time spent among all markets analyzed except China. The time spent in YouTube is up to 6x that of the next closet app at 38 hours per month.

Of course, another big story for 2020 was the rise of e-commerce amid the pandemic. This made the past year the biggest ever for mobile shopping, with an over 30% increase in time spent in Shopping apps, as measured on Android phones outside of China.

Mobile commerce, however, looked less traditional in 2020.

Social shopping was a big trend, with global downloads of Pinterest and Instagram growing 50% and 20% year-over-year, respectively.

Livestreaming shopping grew, too, led by China. Downloads of live shopping TaoBao Live in China, Grip in South Korea and NTWRK in the U.S. grew 100%, 245% and 85%, respectively. NTWRK doubled in size last year, and now others are entering the space as well — including TikTok, to some extent.

The pandemic also prompted increased usage of mobile ordering apps. In the U.S., Argentina, the U.K., Indonesia and Russia, the app grew by 60%, 65%, 70%, 80% and 105%, respectively, in Q4.

Business apps, like Zoom and Google Meet among others, grew 275% in Q4, for example, as remote work and sometimes school, continued.

The analysis additionally included lists of the top apps by downloads, spending and monthly active users (MAUs).

Although TikTok had been topping year-end charts, Facebook continued to beat it in terms of MAUs. Facebook-owned apps controlled the top charts by MAUs, with Facebook at No. 1 followed by WhatsApp, Messenger and Instagram.

TikTok, however, had more downloads than Facebook and ranked No. 2 by consumer spending, behind Tinder.

The full report is available only as an online interactive experience this year, not a download. The report largely uses data from both the iOS App Store and Google Play, except where otherwise noted.

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A bunch of Amazon devices are on sale for Prime Day, some at more than half off

amazon kindle paperwhite 2018

Enlarge / Amazon’s waterproof Kindle Paperwhite. (credit: Valentina Palladino)

Amazon Prime Day is upon us once again, folks. As it does every year, the sales event brings discounts to thousands of products—with the company’s own devices getting some of the biggest price cuts. This year, we have markdowns across the board, ranging from services like Amazon Music and Audible to Kindle, Fire, and Echo devices.

So, if you’re seeking to set up your smart home, buy a new e-reader, tablet, streaming device, DVR alternative, or even a set of security cameras, we’ve gathered Prime Day’s best Amazon device deals in one place for your convenience. As a reminder, the Prime Day offers below are only available to Prime subscribers, and the event itself will last until 12am PT on October 14.

Best Kindle e-reader and Fire tablet deals of Prime Day 2020

The Amazon Fire HD 10 tablet.

The Amazon Fire HD 10 tablet. (credit: Valentina Palladino)

For the budding or long-time bookworm, the Kindle Paperwhite is the best e-reader you can buy. The waterproof device is available in a classic black casing or a handful of playful, colorful alternatives for kids, who unfortunately aren’t waterproof. The former in particular is down to $80, which is the lowest price we’ve tracked.

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Amazon says police demands for customer data have gone up

Amazon has said the number of demands for user data made by U.S. federal and local law enforcement have increased during the first half of 2020 than during the same period a year earlier.

The disclosure came in the company’s latest transparency report, published Thursday.

The figures show that Amazon received 23% more subpoenas and search warrants, and a 29% increase in court orders compared to the first half of 2019. That includes data collected from its Amazon.com retail storefront, Amazon Echo devices and its Kindle and Fire tablets.

Breaking those figures down, Amazon said it received:

  • 2,416 subpoenas, turning over all of partial user data in 70% of cases;
  • 543 search warrants, turning over all of partial user data in 79% of cases;
  • 146 court orders, turning over all of partial user data in 74% of cases.

The number of requests to the company’s cloud services, Amazon Web Services, also went up compared to a year earlier.

But it’s not clear what caused the rise in U.S. government demands for user data. A spokesperson for Amazon did respond to a request for comment.

But the company saw the number of overseas requests drop by about one-third compared to the same period a year earlier. Amazon rejected 92% of the 177 overseas requests it received, turning over partial user data in 10 cases and all requested data in four cases.

Amazon also said it received between 0 and 249 national security requests, flat from previous reports. Justice Department rules on disclosing classified requests only allow companies to respond in numerical ranges.

Amazon was one of the last major tech companies to issue a transparency report, despite mounting pressure from privacy advocates. But its report remains far lighter on details compared to its Silicon Valley rivals.

The company’s Ring smart camera division, despite facing criticism for its poor security practices and its close relationships with law enforcement, has yet to release any data related to police requests for user data.

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