We've made some updates to the app store! See the developer blog for details.
-Alpha Monkey
Only completely new downloads count as a new download--not updates.
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I'm a little skeptical about this statement. I just updated my app and I am seeing a incredible amount of downloads over just one day. I've not updated the app for over 1+ month and have been seeing a steady state of 200 downloads per day, then this happens when I update the app.
I have a strange feeling about the numbers, too. But it could also be the advertising effect of the "new and updated" section of store.