Grishin Robotics

In 2024, the global app economy displayed a mixed picture: while app downloads decreased by 2.3% to 110 billion, consumer spending surged to $127 billion, a 15.7% rise from 2023. This growth was primarily driven by Apple's App Store, which saw a 24% increase in revenue, while Google Play's spending dipped. Subscriptions played a key role, with only 5% of apps offering them, yet accounting for 48% of revenue. Notably, Instagram led in downloads, while TikTok dominated in consumer spending. Despite a maturing market, countries like Brazil and Mexico showed significant growth in spending and downloads, respectively.

Instagram is set to become a powerhouse for Meta's advertising revenue in the US, anticipated to account for half of it by 2025, as per Emarketer. This growth underscores Instagram's pivotal role in Meta's business, especially with features like Reels and Threads challenging competitors. In 2021, Instagram generated $32.4 billion globally, about 27% of Meta's sales, and it continues to surge. By 2025, its US ad revenue is expected to exceed $32 billion, marking a 24% increase. Instagram's transformation into a video-centric platform, with users dedicating two-thirds of their time to video content, has been crucial, particularly with Reels capturing significant user engagement.

Tinder revolutionized dating in 2012, quickly becoming a billion-dollar app with millions swiping daily. Yet, as user growth slowed and its reputation leaned towards casual connections, Match Group, Tinder's parent company, faced challenges. With a 76% stock price drop since 2021, pressure mounted to innovate and reclaim growth. The company's solution? AI. By leveraging advanced AI, Match Group aims to enhance user matchmaking, offering insights like shared interests beyond surface-level traits. This strategy extends to Hinge, where AI could coach users in engaging conversations. Despite these innovations, Match Group's shares recently dipped, highlighting the uphill battle ahead.

Adobe Inc. faces challenges as its shares plummet following a disappointing annual sales forecast, with concerns over competition from AI-driven startups. The company projects revenue of $23.4 billion for the fiscal year ending November 2025, falling short of analysts' expectations. Despite integrating AI features like Firefly into products such as Photoshop and Premiere, Adobe's cautious outlook reflects uncertainties in AI adoption. While Adobe's sales rose 11% in the fourth quarter, investor concerns persist over its ability to maintain market share against innovative competitors like OpenAI. Adobe plans to introduce higher-priced AI offerings to bolster growth.

Epic Games is making a significant move towards expanding its market presence by partnering with Telefónica to preinstall the Epic Games Store on millions of Android devices, including Samsung phones, across the UK, Germany, Spain, and Latin America. This strategic partnership marks the first instance of the Epic Games Store being preinstalled on consumer phones, potentially challenging Google's app store dominance and boosting Epic's revenue share. This development follows a legal victory for Epic against Google, where it was determined that Google had created an illegal monopoly with its Android app store. As Epic continues to forge partnerships, the landscape of mobile gaming and app distribution could see substantial shifts.

Prosus NV has reported a $60 million adjusted EBIT profit in the first half of its fiscal year, marking a turnaround from previous losses. This was largely due to $2 billion in asset sales, including stakes in Trip.com and Superbalist. With $10 billion in deployable capital, Prosus plans to invest heavily in AI, marketplaces, food delivery, and fintech, with a strategic focus on India as a key growth area. President and CIO Ervin Tu emphasized AI's role as a transformative force within the company's ecosystem. Additionally, the company's e-commerce revenue surged, and its share buyback program has generated $36 billion in value.

Another AI news update: Google has announced a significant update to Gemini. At first glance, it seems to be a major improvement

Meta has launched Llama 3.3, showcasing significant improvements, particularly in multilingual capabilities.

Roblox is taking a strategic stand against the hefty fees imposed by Apple and Google's app stores by offering 25% more Robux to users purchasing through the web or gift cards. This move not only encourages users to bypass app store markups but also aligns with Roblox's commitment to delivering more value to its communities. While maintaining a diplomatic stance, Roblox's decision reflects growing industry resistance against the so-called "Apple tax." This initiative is not a temporary promotion but a long-term change, earning praise from Epic Games' CEO Tim Sweeney, a vocal critic of app store fees. As regulations like the Digital Markets Act gain traction, alternative app store solutions are emerging, promising a shift in how digital content is monetized.