Chinese retailer Temu had the most downloaded app in the U.S. over the past year, according to data compiled by StatCounter.
The year-end report on app downloads shows that Temu, a popular e-commerce app owned by China’s PDD Holdings, topped Apple’s list of the most downloaded free apps on its U.S. iOS store for a second consecutive year.
Temu sells discounted clothing at affordable prices to consumers and has proven to be a runaway success, particularly among teens and young adults.
Artificial intelligence (A.I.) app ChatGPT was the second most downloaded free app of the year, while another popular Chinese app, ByteDance’s TikTok, came in third place in the rankings.
Apple’s iOS accounts for over 56% of the U.S. mobile phone market.
Temu’s ascension atop the app rankings is impressive given that the company only entered the U.S. market in 2022.
However, both Temu and TikTok face increased scrutiny from U.S. officials, and risks posed by tariffs which the incoming administration of president-elect Donald Trump has promised to raise.
This past September, the Biden administration announced a new proposal aimed at blocking the “overuse and abuse” of the long-standing “de minimis” provision by companies such as Temu.
The provision allows shipments valued under $800 U.S. to be exempt from import duties.
If Temu loses its de minimis exemption, it could push up prices and reduce the Chinese company’s competitiveness, say analysts.
U.S. officials are not the only ones concerned about cheap Chinese imports flooding domestic markets.
In Southeast Asia, Vietnam and Indonesia have imposed a range of anti-dumping tariffs on Chinese goods to try and stop the growth of apps and companies such as Temu.
Temu is a private company and its stock is not publicly traded.