Understanding the Shift: Fewer App Downloads but Increased Spending
The app economy is undergoing a significant transformation in 2025, as revealed by Appfigures' latest annual report. Despite a notable decline in app downloads, user spending within apps has reached unprecedented heights. This article delves into the factors driving these paradoxical trends, highlighting the implications for developers and consumers alike.
Downloads Plummet, Spending Surges
2025 marked the fifth consecutive year of declining app downloads, following a peak of approximately 135 billion installations during the pandemic in 2020. Nevertheless, the industry is thriving, primarily due to the growing prevalence of subscription models that have become integral to the app economy.
Download Trends:
In mobile gaming, downloads fell by 8.6% year-over-year to 39.4 billion, continuing a trend set in previous years. In contrast, non-game apps saw a modest increase, rising by 1.1% to reach 67.4 billion downloads.
This differentiation in download performance across categories illustrates the varying impacts on the app market.
Exponential Growth in Spending
Amidst the download decline, in-app spending has surged. In 2025, users spent $72.2 billion on mobile games, accounting for nearly half of the total app spending and marking a 10% increase from the previous year. More strikingly, non-game app expenditures skyrocketed by 33.9% to reach $82.6 billion.
Such trends underscore the sustainability of the app economy as it increasingly leans towards subscription models, with companies like Apple introducing innovative bundles that tap into consistent revenue streams.
The Subscription Economy Normalizes
The rise of subscription services across multiple platforms has shifted consumer behavior. People are now more selective about downloading new applications, with many expressing concerns over a saturated market filled with subscriptions. A recent poll highlights these sentiments:
- Subscriptions everywhere: 40%
- Too many ads: 6.67%
- I already have what I need: 53.33%
- Storage and clutter: 0%
As consumers grapple with subscription fatigue, their appreciation for app value becomes increasingly paramount.
Conclusion
As the app landscape continues to evolve, the sheer volume of downloads may not indicate the overall health of the app economy. Instead, increased consumer spending highlights an industry's shift towards delivering sustainable revenue through subscriptions. Industry stakeholders must adapt to these changes, ensuring they meet users' needs in a competitive space where less might just mean more.
