New Downloads of Business Apps Plateau

Zoom and Slack released quarterly earnings reports this week, highlighting the differences in expectations for each company despite astronomical user growth in the last three months. While Zoom shares soared after blowing past expectations, Slack shares slumped after failing to jump as high in income and revenue. Now, data shows an increase in downloads and new users may be reaching a plateau, which could alter investors strategies even further.

Data from App Annie compiled by the Wall Street Journal shows that new smartphone downloads of business apps appear to have reached their high point. With 79 million downloads in the middle of May, downloads dropped from high points above 80 million in weeks near the end of March and all throughout April.

The three main business apps available now are Slack, Zoom and Microsoft Teams. With COVID-19 restrictions forcing tens of millions to begin working remotely, these three companies have all thrived in new users and fast expansion of their platforms since March. However, as demand for new users plateaus, expect more active competition as they look to hold on to new users and draw other users away from their alternative choice.