Mobile Apps Earns $50 Billion In Revenue As A Result Of COVID-19
App Development
07Jul 2020
As pandemic has begun to change the world and made life digitalized, it has seen a significant rise in the way technology has evolved. The e-learning platforms, virtual reality, data science companies, app development companies have all analyzed the future of this new normal going digital. Mobile app development companies are seeing significant growth in the way users are downloading a bunch of apps. The first two quarters of 2020 saw a massive increase in app installs and spendings on the apps.
App Store and Google Play jointly make the revenues go up to $50.1 billion across the globe in the first half of the year. This figure is 23.4% higher compared to the previous year. In the years 2018 and 2019, revenues saw a 20% growth in their first half. Not only that, apps installs reached 26.1% higher than many years before, alone in first-half of 2020, it observed 71.5 billion installs.
Google Play accounted for 53.2 billion app downloads, 27.3% higher, and Apple’s App Store delivered for 18.3 billion app installs, up 22.8%, year- over -year. This might look like Google Play outperformed Apple in app downloads, undoubtedly true. However, looking at revenues, the App Store generated more revenues than its rival company.
Let’s see the incomes of both these Smartphone leaders.
Sensor Tower estimated, the revenues generated by Apple were $32.8 billion from in-app purchases. Premium apps, subscriptions, and games, 24.7% higher from previous years. This figure is twice the revenues earned by Google Play, which is $17.3 billion, 21% higher from past years.
The top-earning non-game apps resulted in a drop in the first two quarters of 2020. While everyone thought the dating app tinder would see a significant decline due to the pandemic and social distancing rules, it observed huge earning.
What about the Tinder app?
During the first two quarters, Tinder earned an estimated revenues of $433million in both App Store and Google Play collectively. Nevertheless, this figure is less than the past year when by about 19% when the revenues were $532 million. The result of the decline is equivocal, whether it’s due to the spending habits amid the COVID or consumer’s changing behavior. The pandemic has compelled everyone to live under isolation, resulting in spike at many social networking platforms.
Tinder maintained its top 5 app status by making its “passport” feature free. This feature allows the users to find singles worldwide, making it a more social networking app rather than focusing on real-world dating alone. However, it is also possible that making this feature free got Tinder to reduced revenues.
Other top-grossing apps:
Youtube became the top 2 revenue-earning app, during the first two quarters of 2020. The estimated revenues reached $431 million across the globe.
The next top revenue-earning apps is TikTok, which is now banned by the Indian Government. TikTok made an estimated earning of $421 million. It was the top-grossing app during the first half of the year, with 626 million installs, It took a significant drop in the second half-year because of the changes made by the Indian Government banning 59 Chinese apps along with TikTok.
A Social video app Douyin also broke records during the first two quarters, not in China alone but worldwide. The revenues go beyond 2 billion, as reported by Sensor Tower. The next top-grossing apps were Tencent video and Netflix.
On the other end, people forced to stay in homes due to the pandemic, have been installing apps and games massively. The first 2 two quarters of 2020 observed 71.5 billion app installations, which is 26.1% from the past year.
Earlier, the Whatsapp and Zoom were at positions No. 2 and 3, and the rapid shift was due to remote working and consumers’ convenience of online video conferencing. Meanwhile, No. 4, No. 5 and No. 6 positions were of Facebook, Instagram, and Messenger.
Like TikTok, social apps like Snapchat and Likee, were positioned to No.7 and No.8, respectively. These apps offer a wide range of face effects and filters. Netflix and Youtube reached at top 10.
Mobile Gaming:
Mobile gaming apps observed a spike during the pandemic, reached an estimated revenues of $36.6 billion during the first two quarters of 2020. The incomes noted by the App Store account to $22.2 billion, while Google Play delivers 14.4% billion.
PUBG Mobile becomes the top-grosser beating the Honor of Kings, during the first two quarters. The game generated $1.3 billion jointly with Google Play and App store, excluding China’s third-party Android App Store. Honor was Kings was placed at 2nd position delivering $1 billion in revenues.
The next top-grossing apps in the top 10 include Monster Strike ($632 million), Roblox, Coin Master, Candy Crush Saga, AFK Arena, Gardenscapes, Fate/Grand Order, and Pokemon Go.
The gaming app Roblox has observed as a result of the pandemic. The kids get compelled to stay indoors, and this has increased the gaming across digital platforms. As per the Sensor Tower report in June, Roblox exceeded a breakthrough of $1.5 billion in lifetime player spendings. And Coin Master is observing the $1 billion lifetime player record.
In the context of top game installs, PUBG Mobile held the first spot again. Ludo King held the 8th spot in the overall download (App Store and Google Play). The mobile gaming market observed a 42.5% growth compared to the past years to deliver 28.5 billion new installs.
Final Analysis:
No matter the impacts of Covid-19 on the Mobile App market can be seen during the first two quarters of the year. However, the results are more significant in the 2nd quarter of the year, considering, the COVID-19 lock-downs took place by the end of the first quarter and the whole of the 2nd quarter.
The Sensor Tower research shows that the consumer purchases on apps and games sprung to 11% quarterly (Q1 2020 to Q2 2020). This increase is enormous when compared to the rise in 2019. The jump between Q1 2019 and Q2 2019 was approximately 1.4%.
App development company has made significant progress in revenues during COVID-19 lockdown, where the other businesses are still healing from the effects of Pandemic.
Harnil Oza is the CEO & Founder of Hyperlink InfoSystem. With a passion for technology and an immaculate drive for entrepreneurship, Harnil has propelled Hyperlink InfoSystem to become a global pioneer in the world of innovative IT solutions. His exceptional leadership has inspired a multiverse of tech enthusiasts and also enabled thriving business expansion. His vision has helped the company achieve widespread respect for its remarkable track record of delivering beautifully constructed mobile apps, websites, and other products using every emerging technology. Outside his duties at Hyperlink InfoSystem, Harnil has earned a reputation for his conceptual leadership and initiatives in the tech industry. He is driven to impart expertise and insights to the forthcoming cohort of tech innovators. Harnil continues to champion growth, quality, and client satisfaction by fostering innovation and collaboration.
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