App Downloads Decline But Spending Hits Record $156B in 2025
For the fifth straight year, global app downloads have declined—yet mobile consumers spent more than ever in 2025. According to Appfigures’ annual report, users downloaded 106.9 billion apps across iOS and Android, down 2.7% from 2024. Meanwhile, total consumer spending surged 21.6% to an estimated $155.8 billion, signaling a major shift in how people engage with mobile software. The takeaway? Fewer new users are downloading apps, but those who do are spending significantly more—often through subscriptions or in-app purchases.
Why Are App Downloads Falling While Revenue Soars?
The decline in downloads doesn’t mean people are using fewer apps—it reflects market saturation and changing user behavior. Most smartphone owners already have the essential apps they need: messaging, banking, social media, streaming, and productivity tools. Instead of constantly trying new apps, users are sticking with familiar ones and deepening their engagement.
This loyalty is paying off for developers. With refined monetization strategies—especially recurring subscriptions—companies are extracting more value from existing users. Think premium tiers on fitness trackers, ad-free news access, or cloud storage upgrades. These models turn occasional users into steady revenue streams, even without new downloads.
Non-Game Apps Now Outearn Mobile Games for the First Time
One of the most striking findings from the 2025 data is that non-game apps generated more revenue than mobile games—a historic first. Consumers spent $82.6 billion on non-game apps, up 33.9% year-over-year, compared to $72.2 billion on mobile games (up just 10%).
Gaming once dominated the app economy, but today’s winners are services that integrate into daily life: dating platforms, financial tools, language learning apps, meditation guides, and on-demand fitness. These categories thrive on subscription models, where users pay monthly for ongoing value rather than one-time purchases or microtransactions. The trend underscores a broader move toward utility over entertainment in mobile spending.
The Subscription Economy Is Reshaping Mobile Monetization
Subscriptions aren’t just popular—they’re becoming the default business model. From photo editing suites to meal-planning services, developers are designing experiences meant to retain users long-term. And it’s working.
Apple and Google have both streamlined in-app subscription management, making it easier for users to sign up—and harder to cancel accidentally. Combined with personalized onboarding and tiered pricing (basic, pro, family), these tactics boost conversion and reduce churn. For developers, the math is clear: acquiring a new user costs far more than retaining an existing one. In a download-scarce environment, maximizing lifetime value is the smartest play.
Regional Shifts: Where Growth Is Still Happening
While mature markets like North America and Western Europe show flat or declining download numbers, emerging regions tell a different story. Parts of Southeast Asia, Latin America, and Africa continue to see rising app adoption as smartphone penetration expands. However, even there, spending per user remains low compared to wealthier regions.
That said, developers targeting these areas are experimenting with localized pricing, mobile carrier billing, and lite versions of apps to drive initial adoption. The goal? Convert free users into paying subscribers over time. It’s a longer runway, but one with massive potential as digital infrastructure improves globally.
What This Means for Developers in 2026
If you’re building or marketing an app in 2026, chasing downloads alone is a losing strategy. The focus must shift to user retention, engagement depth, and monetization efficiency. Successful apps now prioritize:
- Seamless onboarding that demonstrates immediate value
- Clear paths to premium features (without being pushy)
- Personalized content or services that encourage habitual use
- Transparent subscription terms that build trust
Apps that feel essential—not optional—will win. That could mean automating tedious tasks, safeguarding privacy, or delivering real-world outcomes (like better sleep or smarter budgets). In a crowded marketplace, utility and reliability beat novelty every time.
The Hidden Cost of “Free” Apps
As paid subscriptions rise, so does user awareness about data and privacy. Many “free” apps rely on aggressive ad tracking or data harvesting to stay afloat—a model that’s increasingly falling out of favor. In contrast, subscription-based apps often promise fewer ads, better security, and more control.
This shift aligns with growing consumer demand for ethical tech. People are willing to pay if they believe they’re getting fair value and respectful treatment. For developers, this isn’t just a moral imperative—it’s a competitive advantage. Transparency builds loyalty, and loyalty drives long-term revenue.
Quality Over Quantity
The 2025 data paints a clear picture: the mobile app economy is maturing. The era of explosive growth through sheer volume is over. Instead, success belongs to those who build meaningful, sustainable relationships with users.
Expect 2026 to bring even more innovation in subscription design—think flexible billing cycles, bundled services, or usage-based pricing. We may also see consolidation, as smaller apps struggle to compete without robust retention strategies. But for users, the upside is a cleaner, more valuable app ecosystem—one where you pay for what truly matters to you.
In the end, fewer downloads don’t signal decline—they signal evolution. The app market isn’t shrinking; it’s refining. And for both consumers and creators, that’s a promising development.
