The world of mobile apps has undergone a significant shift in recent times. According to a recent study by intelligence firm Appfigures (via TechCrunch), App Store users in the U.S. are downloading fewer apps than ever before. But, interestingly, this doesn’t mean that developers are making less money.
An expected drop in the number of downloads
The Mobile Market Index, which tracks downloads and revenue for the top 25 apps in each category in the App Store, showed a 9% decrease in the number of downloads through August 31, 2023, compared to the same period last year. Exactly one year ago, this index stood at 91.87 points, but this year it has dropped to 83.59 points. This decline is even more significant if we consider that last year’s figure was already lower than in 2018.
The vacation season has always been a period of high activity for the App Store. During the last holiday season, the index exceeded 95 points due to the number of people buying Apple products as Christmas gifts. However, downloads dropped sharply to 64.50 points in April 2023, although they recovered to more regular levels over the summer.
The report suggests that the drop in downloads is related to a certain loss of interest and also to market saturation in news, games and entertainment apps. However, some categories, such as productivity apps, have experienced impressive growth, with an increase of almost 70% in the last year.
But an increase in revenues by developers
Despite the decline in the number of downloads, developers are generating more revenue than ever. Since 2018, the revenue index has grown from 363.13 points to 458.3 points. Appfigures explains that “revenue growth has far outpaced the slowdown in downloads as more developers focus on monetization.”
In other words, although we are downloading fewer apps, we are also investing more money in the apps we already have. This behavior could be due to several factors, such as increased loyalty to certain apps and focusing on a few high-quality apps, as well as developers implementing more effective monetization strategies.
With the arrival of the new iPhone 15 at the Wonderlust event and the holiday season on the horizon, developers will have another opportunity to attract new users and increase downloads of their apps. With that, the annual cycle is extending and the cycle of the same apps, both in terms of annual downloads and new alternatives that may replace the familiar ones, continues.
The App Store ecosystem, better than ever before
Beyond the reasons related to the target audience of apps and the App Store, Apple’s app store does a lot to ensure that all developers can find their place there. Apple’s continuous innovation in terms of devices moves more and more people to the App Store and there, gestures such as the daily curated cover by several experts, give prominence to the best apps.
Not necessarily the most established ones, but those that stand out above the average for their approach and quality. If we add to this the monetization options that Apple makes available to developers, the whole ecosystem works in a virtuous circle.
The decline in the number of app downloads on the App Store does not necessarily mean bad news for developers or for us as users. With more efficient monetization tools and a focus on growing categories, developers can continue to thrive in an increasingly important market. While as users we turn to our reference apps and discover some in the Apple store, the investment within apps reflects the use we make of apps that are increasingly present in our daily lives. We may be downloading less, but fortunately, developers are earning more.
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