The apk file size for my app is quite big. Is it possible to reduce the file size by using better compression level or different compression engine such as lzma (https://software.intel.com/en-us/android/articles/native-library-compression-sdk-for-android-apps)?
To simply answer your question:
Yes, use lzma.
Okay, now some other recommendations.
These are some small recommendations of mine. If you need your apk to be smaller still, I'd suggest trying google
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