Axios

U.S. iPhone users are increasing their spending on premium apps and in-app purchases, according to data from mobile analytics firm SensorTower. In 2016, they spent an average of $40, up from $35 the previous year.

Games rule the App Store: Gaming apps generated 80% of that revenue, according to the data. The average iPhone user spent $27 last year on games, versus only $3.60 on music apps—the second biggest category after games. And while entertainment apps like Hulu and Netflix saw a 130% bump, revenue from that category is still only $2.30 from the average U.S. iPhone user.

The flip side: In contrast with revenue, which is growing, SensorTower found that the average U.S. iPhone user installed 33 apps, down from 35 the previous year. The trend was present across all app categories, including games.

Why it matters: While this is good news for Apple, which has been touting its growing revenues from its services including its app store, this latest data also underscore the challenges it will have to push a subscription model for its apps. As the data shows, users mainly spend money on gaming apps, so they'll have to be convinced to spend money on other types of apps to begin with.

Fortune reported that Google is planning to discontinue its business feature, Google Site Search (GSS), which — for a fee — provides web publishers with customizable search technology, making it easier for users to find the site. Existing users can keep using GSS for the allotted time under their current contract, but Google will stop selling new licenses and renewals on April 1.

Once a customer's GSS contract is up, the account will "automatically convert" to Google's free Custom Search Engine (CSE). If customers don't want to move to CSE they can choose to remove their existing search engine. Google described its plans to customers and partners in an email obtained by Fortune on Tuesday, but the news has yet to be publicly announced.

In a company-wide meeting two days after explosive allegations of sexual harassment and sexism from a former employee, Uber CEO Travis Kalanick "spoke very honestly about the mistakes he's made — and about how he wants to take the events of the last 48-hours to build a better Uber," according to a blog post from board member Arianna Huffington.

"It was great to see employees holding managers accountable. I also view it as my responsibility to hold the leadership team's feet to the fire on this issue," added Huffington, without providing further details of the conversations. The company spent more than an hour discussing women's experiences in the workplace, she said.

Why this matters: As a fast-growing company in the last few years, Uber chose not to focus its HR efforts on diversity and areas outside of hiring (and firing), as Recode recently noted and Axios has also heard. This is likely one of the mistakes Kalanick discussed during the meeting and where efforts after investigation of the allegations could focus.

Kristina Schake, who served as communications chief for Hillary Clinton's presidential campaign and who was also communications chief for First Lady Michelle Obama, is joining Instagram. Schake is replacing David Swain, current head of communications who has been working at Facebook for a decade.

She will build Instagram's brand: Per ReCode, building Instagram's brand will be one of her main focuses. Instagram boasts 600 million users right now and is working to expand its advertising arm. The good news is Schake has some experience with branding: she encouraged Michelle Obama's dance with Jimmy Fallon on "The Tonight Show" and had her shop "undercover" at Target.

Why we're watching: Schake is joining Instagram at a crucial and fast-growing time for the company as it competes head-to-head with rival Snapchat for the coveted younger set.

As the rumor mill heats up over what will be in Apple's next iPhone, it's good to have a strategy for making sense of the predictions. For me, that's focusing on consistency within all the speculation.

The WSJ reports that Verizon will cut its $4.83 billion deal to buy Yahoo by as much as $350 million, and will evenly split the costs from Yahoo's two major data breaches. Verizon has also agreed to give up its right to sue over the idea that Yahoo covered up its hacks.

Note: Last week, Bloomberg reported that Verizon cut the deal price by $250 million, a great compromise for Yahoo after its messy data breaches. Even with the news that Verizon wants to lower the price by another $100 million, Yahoo is surely still breathing a sigh of relief that Verizon hasn't killed the deal entirely.

A former Uber engineer's blog post documenting widespread sexism is the latest anecdotal evidence of the company's frat-house culture. But it's part of a larger long-term cultural crisis Silicon Valley has grappled with after several waves of criticism over the lack of women and minority employees at tech companies, start-ups and the firms that invest in them.

In a Facebook post, Mark Zuckerberg says it's "a good time to say thank you to all the journalists around the world," and that while he may not always agree with what they publish, "that's how democracy is supposed to work."

Why it matters: While Zuckerberg's comments are an obvious jab at Donald Trump's disdain for the press, they're also ironic given his company's massive impact on the media industry. Though Facebook refuses to call itself a "media company," it has not only drawn a huge portion of digital ad spend, but also become one of the main sources of news for its users. Following the recent U.S. election, it was left to grapple with its role in helping disseminate "fake news" articles.

Samsung's brand reputation takes a big hit: The Korean electronics manufacturer came in number 49 in this year's Reputation Quotient Ratings from Harris Poll, down from being at number seven last year. The massive fall in ranking is undoubtedly due to the Galaxy Note 7 battery fiasco, which forced the company to recall all devices.

Uber has hired former U.S. Attorney General Eric Holder to lead an investigation into a former engineer's explosive allegations of gender discrimination and sexual harassment, according to a company-wide email sent on Monday by CEO Travis Kalanick. This comes less than 24 hours after Uber board member Arianna Huffington said that she and new HR chief Liane Hornsey would lead an "independent" investigation, which some quickly noted was hardly independent.

Huffington and Hornsey both will still be involved, as will Holder's law partner Tammy Albarran and Uber associate general counsel Angela Padilla. The group also will dig into Uber's overall workplace culture as it pertains to diversity and inclusion. In that vein, Kalanick pledged that Uber in the coming months will release its first workforce diversity report, something it hasn't done despite the example set by many of Silicon Valley's other large technology companies.

Why Holder? He's a respected outsider, although he has been publicly supportive of Uber in the past, such as arguing in favor of the company's background check practices. Holder also was hired last summer by Airbnb to craft an anti-discrimination policy, so he has some Silicon Valley experience.

What's next: Uber will be closely watched as it embarks on this investigation, and especially once the results are out. With a longstanding reputation for ignoring and excusing bad behavior, there will be a lot of pressure on the company to make bold moves if Holder finds the allegations to be truthful.

Snapchat spectacles now available for purchase online.

Spectacles are smartphone-connected glasses that take Snapchats — videos or stills — with the click of a button. Previously, the glasses were only available for purchase at pop-up vending machines in New York and California, where lines were long and the allure was strong. Now, Snap Inc. is making their glasses available to all consumers for $130 USD.

Why it matters: In its S-1 filing with the New York Stock Exchange, Snapchat calls itself a "camera company" instead of a social media app or a messaging service. This is critical in understanding how Snapchat plans to monetize its reach and technology, which investors are monitoring closely ahead of its IPO. In its S-1 filing, Snapchat noted that Spectacles have not initially generated any revenue. While Snapchat makes the majority of its money from advertising now, opening up sales for its new camera now signals that Snap Inc. sees camera technology and sales as a lucrative business model in the future.

Responding to a former Uber engineer's allegations of widespread sexism at the company, Uber CEO Travis Kalanick has called for an "urgent investigation" and threatened to fire anyone found behaving or thinking along the lines of those described.

But even a cursory read of Susan Fowler Rigetti's harrowing post shows a series of alleged events that could not have been caused by one abhorrent manager or a rogue HR person. It implicates an entire culture and raises questions of whether Uber's board and management have the will to change it.

Who's already speaking out: In addition to Kalanick's comments, some early Uber investors are chiming in:

What to watch for: Any comments from the board and the results of Uber's investigation. Also, the public response. Will there be yet another #DeleteUber movement?