What Red Flags Show a Competitor Is Struggling?

Ever wondered why some of your biggest competitors seem to be losing their edge? After years in the mobile app industry, I've noticed that successful companies rarely disappear overnight—they usually show warning signs long before they actually fail. And if you know what to look for, these red flags can reveal massive opportunities for your own app.

The thing is, most app developers are so focused on building their own products that they forget to keep an eye on what's happening around them. But here's what I've learned: understanding when competitors are struggling isn't about being sneaky or underhanded. Its about spotting market gaps, identifying unserved users, and positioning your app to capture the audience they're losing.

I mean, think about it. When a competitor starts cutting corners, ignoring user complaints, or going silent on social media, their users don't just vanish—they're actively looking for alternatives. That's where you come in. The trick is recognising these patterns before everyone else catches on.

The best time to gain market share isn't when you're at your strongest, but when your competitors are at their weakest

Throughout this guide, we'll explore the specific warning signs that indicate an app competitor is in trouble. From app store performance drops to team changes and pricing desperation, I'll show you exactly what to monitor and how to interpret the data. You know what? Some of these signals are so obvious once you know them, you'll wonder how you missed them before. But don't worry—most people do miss them, which is precisely why this knowledge gives you such a competitive advantage in the mobile app marketplace.

App Store Performance Red Flags

When I'm checking out competitors for my clients, the app stores tell me everything I need to know about how well their apps are really doing. It's like having a crystal ball into their business—and honestly, some of the patterns are so obvious it's surprising more people don't spot them.

The first thing I look at is their download trajectory. Apps that are struggling show a clear downward trend in their rankings across multiple keywords. You know what's really telling? When an app that used to rank in the top 10 for its main keywords suddenly drops to position 50 or beyond. That doesn't happen overnight without serious problems.

Rankings and Visibility Drops

App store algorithms are pretty ruthless these days. They factor in user engagement, retention rates, and even technical performance metrics like crash rates. When I see an app's visibility dropping consistently, it usually means users aren't sticking around after downloading—which is a massive red flag for any business model.

• Steady decline in keyword rankings over 3-6 months
• Disappearing from "top apps" categories they used to dominate
• Reduced featuring opportunities in app store editorial content
• Lower search result positions for their brand name
• Decreased organic download velocity compared to previous months

Another dead giveaway is when competitors stop getting featured by Apple or Google. Getting featured isn't just luck—it requires meeting quality standards and having strong user metrics. When that stops happening, you can bet there are performance issues behind the scenes.

I've seen apps lose 70% of their organic traffic simply because they couldn't maintain the technical standards these platforms demand. The app stores have become much more selective, and they'll quickly demote apps that don't meet user expectations.

User Reviews and Ratings Decline

When I'm analysing competitors, I always start with their app store ratings—it's like taking their temperature. A healthy app maintains consistent ratings over time, but when things start going south? The reviews tell the whole story, often months before anyone else notices there's a problem.

The warning signs are pretty clear once you know what to look for. First, watch for a sudden drop in overall rating; if an app goes from 4.2 to 3.8 stars in a few months, that's not just bad luck. Users are genuinely frustrated about something. More telling though is the review velocity—when fewer people bother leaving reviews at all, it usually means the app's losing active users.

I pay special attention to what people are actually complaining about in recent reviews. Are they mentioning crashes that weren't there before? Loading problems? Features that used to work but don't anymore? These technical gripes often signal that the development team is either stretched thin or has lost key people. Sometimes you'll see users saying "this app used to be great but..." and that's your cue that something fundamental has changed behind the scenes.

Set up alerts for your competitors' app store reviews using tools like App Annie or Sensor Tower. When their ratings start sliding, it's often the perfect time to capture their frustrated users with targeted marketing.

One pattern I've noticed over the years is that apps in decline stop responding to user reviews. When a company goes from actively engaging with feedback to radio silence, it's usually because they're either overwhelmed by complaints or have bigger internal problems to deal with. That's a massive competitive advantage waiting to be seized.

Social Media and Marketing Silence

One of the clearest warning signs that a competitor is struggling? Their social media goes quiet. I mean really quiet. When you check their Twitter, Instagram, or LinkedIn and see posts from weeks or even months ago, that's not a good sign for them—but it's useful intelligence for you.

In the app world, consistent marketing is absolutely vital. Users need regular reminders that your app exists and why they should keep using it. When companies start cutting their marketing budget, social media is often the first thing to go because it seems "free." But maintaining a strong social presence actually requires dedicated time and resources that struggling companies simply don't have.

What to Look For

Check their posting frequency over the past few months. Are they still sharing regular updates, responding to customer comments, and promoting new features? Or have they gone from daily posts to maybe one every few weeks? The drop-off is usually gradual at first, then becomes more obvious.

Also look at engagement levels. Even if they're still posting, are people actually responding? Low likes, shares, and comments often indicate that their user base is losing interest. When users stop engaging with a company's content, it usually means they've stopped caring about the product itself.

Marketing Campaign Changes

Beyond social media, watch for changes in their broader marketing efforts. Have they stopped running ads? No longer sponsoring events or podcasts they used to support? These marketing activities cost money, and they're often the first expenses companies cut when budgets get tight. If you notice a competitor has suddenly become much less visible in your shared marketing channels, there's probably a reason for that silence.

Technical Problems Users Complain About

When apps start having serious technical problems, users don't stay quiet about it—they complain loudly and publicly. I've seen competitors go from market leaders to cautionary tales because they couldn't keep their technical house in order. The warning signs are usually pretty obvious if you know where to look.

Frequent crashes are the big one. If users are constantly mentioning that an app crashes on startup or freezes during important tasks, that's a massive red flag. Poor performance like slow loading times, laggy interfaces, or features that simply don't work properly will drive users away faster than almost anything else. Battery drain issues are another killer—nobody wants an app that murders their phone's battery life.

Server Problems and Downtime

Server outages tell you a lot about a company's technical infrastructure and priorities. When apps go down frequently or have extended periods of unavailability, it suggests they're either under-invested in their backend systems or struggling with scale. Social media becomes a complaint hotline during these outages, and the pattern becomes pretty clear if you're watching.

Users will tolerate a lot of things, but they won't tolerate an app that doesn't work when they need it most

Compatibility Issues

Another big technical weakness is when apps fall behind on operating system updates. If users are complaining that an app doesn't work properly on the latest iOS or Android version months after release, that's a sign the development team is stretched thin or not prioritising compatibility. Login problems, payment failures, and sync issues between devices are other technical complaints that signal deeper problems with a competitor's infrastructure.

The best part? These technical problems create opportunities for you to position your app as the reliable alternative that actually works.

When a competitor starts having internal problems, it usually shows up in their team changes pretty quickly. I've watched countless apps struggle and honestly, the pattern is always the same—key people start leaving, hiring slows down, and the company gets weirdly quiet about its team updates.

LinkedIn becomes your best friend here. If you see their senior developers, product managers, or designers jumping ship within a few months of each other? That's a red flag. Good people don't leave successful companies all at once unless something's going wrong behind the scenes.

Job Posting Patterns Tell Stories

Keep an eye on their job postings too. Companies in trouble often go from hiring regularly to posting the same roles over and over again—they can't find good people or they can't afford to pay competitive salaries. Sometimes they'll stop posting altogether, which is even worse.

You'll also notice changes in their company updates. Remember when they used to announce new team members with excitement? Now its just... silence. Or they start posting generic "we're hiring" messages instead of celebrating specific people joining.

Social Media Goes Corporate

Their social media presence changes too. Instead of real team members posting about their work, everything becomes sanitised corporate speak. The personal touch disappears because the people who cared about the company culture have left.

I've seen companies try to hide mass exodus by removing their team pages entirely or making them really vague. When someone stops wanting to show off their team, that tells you everything you need to know about morale and stability.

Keep watching those patterns—they're usually the first sign that bigger problems are coming.

Pricing Strategies That Signal Trouble

When competitors start playing around with their pricing, it often tells you more about their internal situation than any press release ever will. I've watched apps go through pricing death spirals—and honestly, its not pretty to see but it creates real opportunities if you know what to look for.

The most obvious red flag? Constant price drops. Sure, occasional sales are normal, but when an app goes from £4.99 to £2.99 to £0.99 over a few months, that's desperation talking. They're trying to boost download numbers because something else isn't working—maybe user retention is terrible or their acquisition costs have gone through the roof.

Track competitor pricing changes monthly using App Store monitoring tools. Sudden drops often indicate cash flow problems or failed user retention metrics.

But here's the thing—sometimes competitors make the opposite mistake. They jack up prices thinking it will solve revenue problems without fixing the underlying issues. I've seen apps double their subscription fees only to watch their user base vanish; it's like putting a plaster on a broken leg, really.

Subscription Model Chaos

Pay attention when competitors keep changing their subscription tiers. Adding new plans every few months or constantly tweaking what's included usually means they haven't figured out what users actually want to pay for. This confusion creates a perfect window for you to offer something clearer and more straightforward.

The apps that survive pricing challenges are the ones that understand their value proposition inside and out. When your competitor is flailing around with their pricing strategy, that's your cue to double down on delivering consistent value at a price that makes sense for your market.

Feature Development Has Stopped

When a competitor's app hasn't seen a meaningful update in months, that's usually a sign that something's going wrong behind the scenes. I mean, in mobile development, standing still is basically moving backwards—and most companies know this.

Check their app store update history. If you're seeing six months or more between updates, or worse, updates that only mention "bug fixes and performance improvements" repeatedly, thats a red flag. Companies that are doing well typically release new features regularly, even if they're small ones. They want to keep users engaged and show they're actively improving the experience.

But here's the thing—you need to dig deeper than just update frequency. Look at what those updates actually contain. Are they adding genuinely useful features that users have been requesting? Or are they just fixing problems that should never have existed in the first place? A healthy app usually balances both, but struggling companies often get stuck in endless bug-fixing cycles.

Development Team Warning Signs

Pay attention to their developer job postings too. If they're constantly hiring for the same positions or you notice key technical people leaving (you can often spot this on LinkedIn), it might explain why development has slowed down. Building mobile apps requires consistent technical leadership, and when that gets disrupted, feature development is usually the first casualty.

Also watch for feature rollbacks—when they remove functionality that was previously available. This often happens when companies can't maintain complex features due to resource constraints. Its a clear signal they're prioritising stability over growth, which isn't always a bad business decision, but it does suggest they're in defensive mode rather than expansion mode.

Market Position Shifts

When a competitor starts losing ground, you'll notice their market position shifting in ways that create real opportunities for your app. I've watched this happen countless times—one day they're the go-to solution in their category, the next they're scrambling to stay relevant.

The first sign is usually in app store rankings. If they've been consistently ranking in the top 10 for their main keywords and suddenly drop to page two or three, that's a massive red flag. Rankings don't just slip for no reason; it means downloads are falling, user engagement is dropping, or both.

You'll also see them losing their grip on the conversations in their industry. They used to be mentioned in every "best apps for..." article, but now newer competitors are taking those spots. Trade publications stop featuring them. Industry events don't invite their team to speak anymore.

Partnership and Integration Changes

Watch for partnerships that suddenly go quiet or integrations that get discontinued. When a struggling app can't maintain its business relationships, it creates gaps in the market that you can fill. I've seen apps lose major partnership deals because they couldn't deliver on their promises—that's usually when we know they're in serious trouble.

Market position isn't just about where you rank today, it's about whether you can maintain that position when the competition gets fierce

The key is spotting these shifts early. By the time everyone notices a competitor is struggling, the best opportunities have already been claimed by someone else. Keep monitoring their market presence, track their keyword rankings, and watch for those partnerships that quietly disappear from their website.

Right, so we've covered quite a bit of ground here—from app store rankings dropping off a cliff to teams jumping ship faster than you can say "redundancy." But here's the thing: spotting these red flags isn't about being mean or celebrating when competitors struggle. It's about understanding your market better and making smarter decisions for your own app.

I mean, let's be honest, the mobile app world is brutal. Apps that seemed unstoppable just disappear overnight; companies that raised millions end up shutting down because they couldn't keep users engaged. And actually, that's useful information if you know what to look for.

When you see a competitor's reviews going downhill, their social media going quiet, or their team exodus happening on LinkedIn—these aren't just interesting observations. They're market signals that tell you something about user expectations, industry challenges, or maybe even opportunities you haven't spotted yet.

But here's what I've learned after years of watching apps rise and fall: the companies that spend all their time watching competitors usually miss what their own users are trying to tell them. Sure, keep an eye on the competition, but don't make it your full-time job.

The best defence against becoming the competitor everyone else is watching struggle? Focus on your users, listen to their feedback, keep your team happy, and never stop improving your product. Because honestly, the moment you think you've got it all figured out is probably when your own red flags start showing up.

Use this knowledge wisely, but remember—the goal isn't to watch others fail. It's to make sure you don't join them.