This Week in Apps: Temu’s hot streak, Walmart’s m-commerce & an Apple XR App Store – TechCrunch
Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
The app economy in 2023 hit a few snags, as consumer spending last year dropped for the first time by 2% to $167 billion, according to the latest “State of Mobile” report by data.ai (previously App Annie). However, downloads are continuing to grow, up 11% year-over-year in 2022 to reach 255 billion. Consumers are also spending more time in mobile apps than ever before. On Android devices alone, hours spent in 2022 grew 9%, reaching 4.1 trillion.
This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and much more.
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Temu’s continued rise
Temu, a shopping app from Chinese e-commerce giant Pinduoduo, has been having quite the run as the No. 1 app on the U.S. app stores. The mobile shopping app hit the top spot on the U.S. App Store in September and has continued to hold a highly ranked position in the months that followed, including as the No. 1 free app on Google Play since December 29, 2022. More recently, Temu once again snagged the No. 1 position on the iOS App Store on January 3 and hadn’t dropped since as of earlier this week.
Offering cheap factory-to-consumer goods, Temu provides access to a wide range of products, including fast fashion, and pushes users to share the app with friends in exchange for free products, which may account for some of its growth. The app has seen 5 million U.S. installs this January alone, up 19% from 4.2 million in the prior 22 days from December 10 through December 31, Sensor Tower says. This brings it to a total of 19 million lifetime installs across the App Store and Google Play, more than 18 million of which came from the U.S.
The growth now sees Temu outpacing rival Shein in terms of daily installs. In October, Temu was averaging around 43,000 daily installs in the U.S., the firm said, while Shein averaged about 62,000. In November, Temu’s average daily installs grew to 185,000 while Shein’s climbed to 70,000, and last month, Temu averaged 187,000 installs while Shein saw about 62,000.
The app appears to be leveraging a similar growth strategy to TikTok, which heavily spent on marketing to gain users. According to Meta’s ad library, Temu has run some 8,900 ads across Meta’s various platforms just this month. The ads promote Temu’s sales and its extremely discounted items, like $5 necklaces, $4 shirts and $13 shoes, among other deals. These ads appear to be working to boost Temu’s installs. But dig into the app’s reviews and …….