This Week in Apps: Coronavirus impacts app stores, Facebook sues mobile SDK maker, Apple kicks out a cloud gaming app

Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all.

The app industry is as hot as ever, with a record 204 billion downloads in 2019 and $120 billion in consumer spending in 2019, according to App Annie’s recently released “State of Mobile” annual report. People are now spending 3 hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

In this Extra Crunch series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.

This week, we’ll look at the coronavirus outbreak’s impact on the App Store, China’s demand for App Store removals — and soon-to-be-removals, it seems. We’re also talking about Facebook’s lawsuit over a data-grabbing SDK, Tinder’s new video series, the TSA ban on TikTok, Instagram’s explanation for its lack of an iPad app and how Democratic presidential primary candidates are performing on mobile and social, among other things.

Headlines

Coronavirus concerns send Chinese ride-hailing apps crashing, games surging

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Apple has blocked Clearview AI’s iPhone app for violating its rules

An iPhone app built by controversial facial recognition startup Clearview AI has been blocked by Apple, effectively banning the app from use.

Apple confirmed to TechCrunch that the startup “violated” the terms of its enterprise developer program.

The app allows its users — which the company claims it serves only law enforcement officers — to use their phone camera or upload a photo to search its database of 3 billion photos. But BuzzFeed News revealed that the company — which claims to only cater to law enforcement users — also includes many private-sector users, including Macy’s, Walmart and Wells Fargo.

Clearview AI has been at the middle of a media — and legal — storm since its public debut in The New York Times last month. The company scrapes public photos from social media sites, drawing ire from the big tech giants that claim Clearview AI misused their services. But it’s also gained attention from hackers. On Wednesday, Clearview AI confirmed a data breach in which its client list was stolen.

The public Amazon S3 page containing the iPhone app. (Image: TechCrunch)

TechCrunch found Clearview AI’s iPhone app on an public Amazon S3 storage bucket on Thursday, despite a warning on the page that the app is “not to be shared with the public.”

The page asks users to “open this page on your iPhone” to install and approve the company’s enterprise certificate, allowing the app to run.

But this, according to Apple’s policies, is prohibited if the app’s users are outside of Clearview AI’s organization.

Clearview AI’s use of an enterprise certificate on an iPhone. (Image: TechCrunch)

Enterprise certificates are issued by Apple to allow companies to build and approve iPhone and iPad apps designed for internal company use only. It’s common for these certificates to be used to test apps internally before they are pushed out to the App Store. Apple maintains a strict set of rules on use of enterprise certificates, and says they cannot be used by consumers. But there have been cases of abuse.

Last year, TechCrunch exclusively reported that both Facebook and Google were using their enterprise certificates for consumer-facing apps in an effort to bypass Apple’s App Store. Apple revoked the tech giants’ enterprise certificates, disabling the infracting app but also any other app that relied on the certificate, including their catering and lunch menu apps.

The app was labeled as “beta” — typically a pre-release or a test version of the app. Besides this claim, there is no evidence to suggest this app was not used by Clearview AI customers.

Clearview AI chief executive Hoan Ton-That told TechCrunch: “We are in contact with Apple and working on complying with their terms and conditions.”

A brief analysis of the app through network traffic tools and disassembly tools shows it works largely in the same way as Clearview AI’s Android app, which was discovered by Gizmodo on Thursday.

Like the Android app, a user needs a Clearview AI-approved username and password to use the app.

Clearview said its facial recognition app was only for law enforcement as it courted private companies

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Apple to begin online sales in India this year, open first retail store in 2021

For a decade, Apple has solely relied on third-party sellers, stores, and marketplaces to sell its products in India. That will begin to change this year.

At the company’s annual shareholder meeting Wednesday, chief executive Tim Cook told investors that Apple will open its online store in India, the world’s second largest smartphone market, at some point this year, and set up its first flagship brick-and-mortar store next year.

“I’m a huge believer in the opportunity in India,” said Cook. “It’s a country with a vibrancy and demographics that are just unparalleled.”

TechCrunch reported last month that Apple was planning to open its online store in Q3 this year and was unlikely to be able to have its brick-and-mortar store ready in the country this year.

India, perhaps the last great growth market for American technology giants, has been a conundrum for Apple and several firms that sell premium items.

It’s a big market that continues to report growth, but most people in the country can’t afford Apple’s products. In fact, the vast majority of smartphones that ship in India carry a price tag of $150 or lower, according to research firm Counterpoint.

For Apple, the other challenge has been the heavy import duty that New Delhi levies on electronic items. This has made iPhone even more expensive for people in India as the company passes the additional cost to customers.

Apple has attempted to broaden its appeal in India by looking to reduce prices of its handset. For years, it urged the government to provide it with some tax benefits. When those talks did not materialize, Apple moved to do something that all the Chinese phone makers have done in India: Assemble smartphones locally.

New Delhi provides companies that assemble electronic items locally with several incentives. Two years into the process, Apple contractors Foxconn and Wistron are assembling a range of iPhone models in India, and that has lowered the prices for a number of models (except those in the current generation lineup.)

These moves have already proven useful for the company. Apple shipped close to 925,000 iPhone units in India in the quarter that ended in December, research firm Canalys estimated. That figure, up 200% year-over-year, was the iPhone-maker’s best year in the country to date, the research firm added.

Madhumita Chaudhary, an analyst with Canalys, said Apple’s decision to become more aggressive with pricing — partnering with banks to offer more incentives to customers — helped the company improve its position in a market with 99% Android smartphones.

With iOS 13, Apple delivers new features to court users in India

Apple has also held discussions with content studios to bulk up its movies and TV shows offerings for the Indian audience. Two years ago, for instance, it was in late stages of talks to acquire the Indian business of Eros Now for $300 million — something which has not been previously reported — with option to expand its stake in the publicly listed global company, sources with direct knowledge of the matter told TechCrunch a few months ago.

But the deal did not materialize.

TechCrunch also reported last month that Cook may plan an India visit for the opening of the online store. Apple did not comment on that story.

India eased sourcing norms for single-brand retailers last year, which paved the way for companies like Apple to open online stores before they establish presence in the brick-and-mortar market.

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Apple to begin online sales in India this year, open first retail store in 2021

For a decade, Apple has solely relied on third-party sellers, stores, and marketplaces to sell its products in India. That will begin to change this year.

At the company’s annual shareholder meeting Wednesday, chief executive Tim Cook told investors that Apple will open its online store in India, the world’s second largest smartphone market, at some point this year, and set up its first flagship brick-and-mortar store next year.

“I’m a huge believer in the opportunity in India,” said Cook. “It’s a country with a vibrancy and demographics that are just unparalleled.”

TechCrunch reported last month that Apple was planning to open its online store in Q3 this year and was unlikely to be able to have its brick-and-mortar store ready in the country this year.

India, perhaps the last great growth market for American technology giants, has been a conundrum for Apple and several firms that sell premium items.

It’s a big market that continues to report growth, but most people in the country can’t afford Apple’s products. In fact, the vast majority of smartphones that ship in India carry a price tag of $150 or lower, according to research firm Counterpoint.

For Apple, the other challenge has been the heavy import duty that New Delhi levies on electronic items. This has made iPhone even more expensive for people in India as the company passes the additional cost to customers.

Apple has attempted to broaden its appeal in India by looking to reduce prices of its handset. For years, it urged the government to provide it with some tax benefits. When those talks did not materialize, Apple moved to do something that all the Chinese phone makers have done in India: Assemble smartphones locally.

New Delhi provides companies that assemble electronic items locally with several incentives. Two years into the process, Apple contractors Foxconn and Wistron are assembling a range of iPhone models in India, and that has lowered the prices for a number of models (except those in the current generation lineup.)

These moves have already proven useful for the company. Apple shipped close to 925,000 iPhone units in India in the quarter that ended in December, research firm Canalys estimated. That figure, up 200% year-over-year, was the iPhone-maker’s best year in the country to date, the research firm added.

Madhumita Chaudhary, an analyst with Canalys, said Apple’s decision to become more aggressive with pricing — partnering with banks to offer more incentives to customers — helped the company improve its position in a market with 99% Android smartphones.

With iOS 13, Apple delivers new features to court users in India

Apple has also held discussions with content studios to bulk up its movies and TV shows offerings for the Indian audience. Two years ago, for instance, it was in late stages of talks to acquire the Indian business of Eros Now for $300 million — something which has not been previously reported — with option to expand its stake in the publicly listed global company, sources with direct knowledge of the matter told TechCrunch a few months ago.

But the deal did not materialize.

TechCrunch also reported last month that Cook may plan an India visit for the opening of the online store. Apple did not comment on that story.

India eased sourcing norms for single-brand retailers last year, which paved the way for companies like Apple to open online stores before they establish presence in the brick-and-mortar market.

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Bird is testing Bird Pay, which lets users purchase items from local businesses using its main app

Another on-demand transport app is making a move into payments to expand the existing relationship with its customers (and subsequent margins that it makes from serving them). Bird today announced the launch of Bird Pay, a service that will let people use its app to purchase items from local participating businesses alongside renting scooters. The service is being tested first in Los Angeles and Santa Monica, the company said.

Bird Pay will work by way of a QR code, which can be read via your app at the point of sale at participating businesses to make cashless purchases. (After scanning the code, you enter the amount you are charging and swipe up to complete the purchase.)

The company said that Bird Pay was created directly in response to requests from businesses themselves — who will be using the app to promote deals near to where Bird users pick up or drop off scooters. The link between local businesses and scooter rides is a strong one: Bird says it found that 58% of all the rides through its app start or end at a local business, and claims that businesses in all of its areas of operation — it’s now live in some 100 cities — say that the presence of Bird scooters outside their establishments have increased footfall.

“An early insight that emerged shortly after introducing Bird in Santa Monica was that it had the potential to not only allow people to avoid the chore of circling a block to find parking resulting in congestion and frustration, but it could also foster a more direct connection between people and local businesses,” said Travis VanderZanden, CEO and founder, Bird, in a statement. “Store owners in the community often tell me, ‘Birds outside bring business inside.’ This phenomenon paired with our commitment to community resulted in Bird Pay which helps drive even more customers to local businesses.”

Adding in payments to on-demand transport apps has become something of a tested and successful formula. In Asia, companies like Grab have built rather extensive payments operations on top of their transportation apps — businesses big enough to be raising hundreds of millions of dollars in their own right to expand. And several months ago, Uber also started to test the waters in this area with the launch of Uber Money.

Of course, services like Grab’s have a slightly bigger greenfield when it comes to winning business: in many of the regions where Grab operates, cash is often still king; therefore, having a relationship with a user, where a mobile app is already being identified with “virtual money” (with money either being preloaded into an app or linked to a payment card), gives the app publisher an easy opening to expanding that relationship, such as payments for local goods and services.

The challenge in the U.S., where Bird is based and operates primarily, is somewhat different: people are already used to plastic cards, and their phones may already have one or more payments apps active already. Both Apple Pay and Google’s Android-based offering have had strong take-up, as have alternatives from Samsung, PayPal and many others. That means a much more crowded playing field for Bird or any other new entrant.

On the other hand, we are creatures of convenience, and if we already have the Bird app open to open or close off a ride, that could just be the lower friction we need to use it to buy something. Time will tell if this particular bird will, indeed, fly.

Bird last October raised some $275 million at a $2.5 billion valuation.

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Bird is testing Bird Pay, which lets users purchase items from local businesses using its main app

Another on-demand transport app is making a move into payments to expand the existing relationship with its customers (and subsequent margins that it makes from serving them). Bird today announced the launch of Bird Pay, a service that will let people use its app to purchase items from local participating businesses alongside renting scooters. The service is being tested first in Los Angeles and Santa Monica, the company said.

Bird Pay will work by way of a QR code, which can be read via your app at the point of sale at participating businesses to make cashless purchases. (After scanning the code, you enter the amount you are charging and swipe up to complete the purchase.)

The company said that Bird Pay was created directly in response to requests from businesses themselves — who will be using the app to promote deals near to where Bird users pick up or drop off scooters. The link between local businesses and scooter rides is a strong one: Bird says it found that 58% of all the rides through its app start or end at a local business, and claims that businesses in all of its areas of operation — it’s now live in some 100 cities — say that the presence of Bird scooters outside their establishments have increased footfall.

“An early insight that emerged shortly after introducing Bird in Santa Monica was that it had the potential to not only allow people to avoid the chore of circling a block to find parking resulting in congestion and frustration, but it could also foster a more direct connection between people and local businesses,” said Travis VanderZanden, CEO and founder, Bird, in a statement. “Store owners in the community often tell me, ‘Birds outside bring business inside.’ This phenomenon paired with our commitment to community resulted in Bird Pay which helps drive even more customers to local businesses.”

Adding in payments to on-demand transport apps has become something of a tested and successful formula. In Asia, companies like Grab have built rather extensive payments operations on top of their transportation apps — businesses big enough to be raising hundreds of millions of dollars in their own right to expand. And several months ago, Uber also started to test the waters in this area with the launch of Uber Money.

Of course, services like Grab’s have a slightly bigger greenfield when it comes to winning business: in many of the regions where Grab operates, cash is often still king; therefore, having a relationship with a user, where a mobile app is already being identified with “virtual money” (with money either being preloaded into an app or linked to a payment card), gives the app publisher an easy opening to expanding that relationship, such as payments for local goods and services.

The challenge in the U.S., where Bird is based and operates primarily, is somewhat different: people are already used to plastic cards, and their phones may already have one or more payments apps active already. Both Apple Pay and Google’s Android-based offering have had strong take-up, as have alternatives from Samsung, PayPal and many others. That means a much more crowded playing field for Bird or any other new entrant.

On the other hand, we are creatures of convenience, and if we already have the Bird app open to open or close off a ride, that could just be the lower friction we need to use it to buy something. Time will tell if this particular bird will, indeed, fly.

Bird last October raised some $275 million at a $2.5 billion valuation.

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Chinese firms rush to bring 5G smartphones to India

India is unlikely to have any substantial coverage of 5G until at least the end of next year, with telecom operators in the country yet to participate in spectrum auction. But that hasn’t stopped Chinese vendors Oppo, Vivo, and Xiaomi from bringing 5G-enabled smartphones to the world’s second largest handset market.

Xiaomi, Vivo’s sub-brand iQoo, and Oppo’s sub-brand Realme have all moved in tandem to unveil their 5G smartphones in the last one week. While Xiaomi, which has been the top handset vendor in India for more than two years, only showcased its recently unveiled 5G-enabled MiMix Alpha smartphone at several of its physical stores in the country, the other two companies have moved to launch new phones.

Vivo, India’s second largest phone vendor, launched the iQoo 3, which features a 6.44-inch display with screen resolution of 1080 x 2400 pixels, 4,440mAh battery (with support for 55W fast charging ), and runs Android 10. It is powered by Qualcomm Snapdragon 865, coupled with 8GB of RAM, and 128GB storage. It sports four rear-cameras — 48MP main shooter, 13MP telephoto, 13MP ultra-wide, and 2MP depth-sensor — and a 16MP selfie sensor.

The phone’s prices start at 36,990 Indian rupees ($515), which goes up to 44,990 ($627) Indian rupees for variants with additional storage and memory.

Realme, which is giving the top phone makers a run for their money in India, launched the X50 Pro 5G that features a 6.44-inch display of screen resolution 1080 x 2400 pixels with support for 90Hz refresh rate. It is powered by Qualcomm Snapdragon 865 SoC, coupled with 12GB of RAM, and 4,200mAh battery with 65W Super Dart charging support.

On the photography front, it houses a 65MP primary shooter, 8MP ultra-wide sensor, 12MP telephoto shooter, and a 2MP portrait sensor. On the front is a setup of duo-selfie sensors of 32MP and 8MP.

The Realme X50 Pro 5G is priced at 37,999 Indian rupees ($530), which goes as high as 44,999 Indian rupees ($627) for variants with additional storage and memory.

Executives at the companies said that the rationale behind launching a 5G phone so ahead of time was to offer future-proof devices. Additionally, Qualcomm also requires phone vendors to use X55 5G modem if they want to use its flagship Snapdragon 865 SoC.

An executive with Poco, which recently spun out of Xiaomi, also chimed in:

5G

Now that we have your attention. Just letting you know – we're here to give you everything you need, nothing you don't. pic.twitter.com/wdWYQMduON

— C Manmohan (@cmanmohan) February 24, 2020

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