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Apple's App Store had a record breaking holiday season

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January 6, 2016

Apple today reported what it called a record breaking time for its App Store during the Holidays. The numbers surpassed its expectations by a wide margin.

Apple said in a statement that in the 2 weeks ending January 3rd, Apple device users spent over $1.1 billion on mobile apps and in-app purchases.

This is setting back-to-back weekly records for both site traffic and purchases, and it took a few industry analysts by surprise.

The first day of 2016 also marked the biggest day in App Store history with customers spending over $144 million for that day alone.

It broke the previous single-day record set just a week earlier on Christmas Day 2015. That too surpised a few observers.

Philip Schiller, Apple’s senior vice president of the company's worldwide marketing division said Apple customers spent about $20.26 billion on the App Store in all of 2015.

“We're grateful to all the app developers who have created the most innovative and exciting apps in the world for our customers. We can't wait for what's to come in 2016," Schiller asserted.

Globally, the App Store has brought in nearly $40 billion for app developers since 2008, with about 35.6 percent generated in the last year alone.

In other mobile and wireless news

Market research firm IDC has published a survey of 5,778 mobile app developers which highlights integrating with various functions such as back-end data management as the biggest challenge in mobile app development and integration these days.

For instance, mobile app developer Appcelerator has designed a new product this year that is used as a cross-platform mobile development tool.

IDC notes that the survey may not be representative of all mobile developers, but nevertheless offers a good indication of where the market's been going this year.

Among this list though, rougly 34 percent spent more than half their development effort on back-end integration.

Their work includes creating and debugging APIs, finding the various documentation for existing APIs, and managing the data from multiple sources in the industry.

IDC also asked about target platforms-- iOS and Android dominate, as you would expect. The most popular targets are the iPhone and the iPad, which gets the attention of between 80 to 90 percent of developers, up a bit from 2014's numbers.

Android phones have declined from 75 percent to around 70 percent this year, on average.

But for its part, the Windows Phone is down to about 23 percent, from 28 percent last year, with Windows tablets just below it.

The disappointment for Microsoft this year is that all its hoopla about the Universal Windows Platform (UWP) does not seem to resonate at all, contrary to the company's large ambitions.

While Appcelerator's Titanium tool does support Windows Phone and Store apps, UWP developers may prefer Microsoft's tools to a certain degree, but that still remains to be seen.

Apple Watch has made a good start, with about 60 percent of developer attention according to the survey.

And what happens about the never ending goal of making money? Just about 60 percent of those surveyed are primarily out to make money from apps themselves, with others aiming for goals such as customer loyalty and brand awareness for their product.

Of those with a profit motive though, about 43 percent said that in-app purchases are the most effective method, followed by advertising at close to 24 percent and app purchase at 19.2 percent.

In other mobile news

It appears that Google's new Lollipop 5.0 release is more secure, but still not secure enough.

At least that's the verdict of security researchers who checked out the model that Google's applied to its Android OS since the Lollipop 5.0 release.

In an Arxiv paper, Elena Reshetova and her collaborators from Finland's Aalto University (with support from Intel) look over the post-Lollipop era, in which they note “every process must be run inside a confined SEAndroid domain with a proper set of access control rules defined”.

The issue is that while the structure and its policy framework would work well if they were followed, OEMs have room to make implementation mistakes.

“Overall, OEM modifications can render policies less strict, resulting in a wider attack surface for potential security vulnerabilities”, the researchers write.

The security errors arise because OEMs simply aren't coping with turning the product around quickly enough to compete, while trying to make sure their implementations comply with the SEAndroid security policy.

Such issues include:

  • The overuse of default profiles. This can mean OEM Android versions can point to sensitive resources from untrusted domains;

  • The overuse of predefined domains. Instead of defining separate domains for each of their apps, OEMs tend to put them in the system_app or platform_app domains, leading to an accumulation of too many apps sharing the same allow rules;

  • Forgotten rules. Security rules that are either auto-generated or relate to deprecated drivers, hanging around creating vulnerabilities;

  • Dangerous rules. Essentially insecurity-by-convenience. Rather than go back and make wholesale changes to the code-base, OEMs ship products with inadequate security policies.
  • The research group has put together an open-source tool named SEAL, which provides policy analysis, policy visualization, and policy decompilation.

    In other mobile news

    Sprint said that it won't take part in the 600 MHz wireless spectrum auction in the U.S. scheduled for the first quarter of 2016.

    The news did come as a bit of a surprise to some.

    In a press statement, CEO Marcelo Claure said-- “Sprint has all the wireless spectrum it needs to deploy its network architecture of the future.”

    Instead of beefing up its airwave portfolio, Sprint says it will focus on improving wireless services on the spectrum it already owns.

    Sprint says it will build extra cell tower sites and aggregate its bandwidth to achieve that goal.

    Some of Sprint’s critics have also suggested that the U.S.’ fourth largest mobile carrier doesn’t have the money to take part in the spectrum auction, and there could be some truth to that.

    But it's more than ten years since the company last took part in a spectrum auction, so its spectrum inventory could be depleted by 2017 some critics say.

    The FCC plans to hold a wireless spectrum auction in March 2016. The goal is to acquire frequencies in the 600 MHz band from TV broadcasters currently using the spectrum in the United States, then sell it to mobile carriers.

    Naturally, the two largest in line would be AT&T and Verizon. A competitive auction is essential for the U.S. government because without some bidding, the auction might not raise enough cash to persuade U.S. broadcasters to part with their valuable spectrum.

    For now, there doesn’t appear to be any threat to this plan, as the other three major operators appear unlikely to drop out at this stage.

    Overall, 600 MHz wireless spectrum is considered 'prime real estate' by most mobile phone companies, simply because it is a lower frequency than the airwaves currently used for cellular communications.

    Lower frequency signals travel further and do a better job of penetrating buildings and passing minor obstacles than higher frequencies do.

    Furthermore, lower frequency spectrum is especially useful and very cost effective for servicing customers in less densely populated areas, as carriers can build cell towers further apart.

    Sprint has extensive spectrum holdings, but most of it is at higher frequencies, therefore not as desirable than what U.S. broadcasters have.

    In other mobile news

    A huge drop in the overall demand for Samsung’s newest Galaxy smartphones triggered a 5th straight monthly decline for the phone maker, wiping out about $44 billion in market value on its stock since April of this year.

    By any measure, this is a substantial drop, even for an Asian company the size of Samsung.

    Samsung dropped by almost $12 billion in its valuation in August alone as the South Korean company surrendered a large share of its market to Apple and various Chinese rivals that offer a lower price point.

    And Samsung’s corporate decision to advance the release of its new Galaxy smartphones failed to dispel pessimism about its second-half earnings.

    Apple is largely expected to take the wraps off its new iPhone on Sep. 9 and release it in time for the crucial end-of-year holiday shopping season.

    “We all know Samsung's smartphone business isn’t doing well,” said Lee Seung Woo, an analyst at IBK Securities in Seoul. “This is no secret to anybody,” he added.

    Samsung’s global smartphone market share fell more than 3 percentage points in the second quarter, and it no longer is the top seller in China, the world’s biggest mobile-phone market.

    It is being undercut at the high end by Apple’s larger iPhones and at the mid-range and low end of the market by devices from Xiaomi, Lenovo and Huawei.

    Source: Apple.

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