iOS 18 could generate $400 million in app revenue

Apple’s habit of using ideas from third-party developer communities to develop new features and apps for iOS and Mac comes with a high price, according to a new report. With the release of iOS 18 later this fall, Apple’s changes could affect apps that generated about $393 million in revenue and were downloaded about 58 million times last year, according to an analysis by the company App Intelligence. application form.

At Apple’s Worldwide Developers Conference every June, Apple unveils upcoming releases of its software and operating systems, which often include features only available through third-party apps. The practice has become so widespread that it’s been given a name: “Sherlocking” — a reference to a 1990s Mac search app that borrowed features from a third-party app called Watson. Now, when Apple releases a new feature that was previously the domain of a third-party app, it is said to have “banned” the app.

In recent years, Sherlocking apps have made little sense. Finally, should the iPhone flashlight really be a third-party display or better a built-in feature? Additionally, Apple was able to release features that made its software more responsive to customer needs and wants by taking into account what was popular in the third-party developer community.

Of course, this practice also raises questions about whether Apple is using proprietary data to make decisions about what to develop next, and whether the apps it competes with are on level playing fields. For example, before Apple launched its own parental control system, the company shut down several third-party apps that had built business in this area, saying that their solutions no longer complied with rules and guidelines. For years, apps have been denied access to an API that allows developers to manipulate Apple’s built-in parental controls, which has led to an antitrust investigation.

In recent years, Apple has innovated in the third-party space by introducing features like continuity cameras, medication tracking, sleep tracking and mood tracking, as well as apps like Freeform and Journal. This year, the company has devoted its attention to creating password managers, call recording and voice switching apps, custom emojis, AI-powered writing tools and math assistants, tracking apps and more.

By analyzing third-party apps that generate more than 1,000 downloads each year, AppFigures has discovered several types that will be in Apple’s crosshairs in 2024.

In terms of total global revenue, these categories generated significant revenue over the past 12 months, led by the Trail Apps category at $307 million annually, led by 2023 App of the Year AllTrails Grammarly and Others, which earned $35.7 million, while Math Assistant and Password Managers earned $23.4 million and $20.3 million, respectively. The custom emoji creation app also brought in $7 million.

Of those apps, track apps accounted for the majority of “potentially banned” sales, or 78%, Appfigures found, as well as 40% of blocked app downloads. To give you an idea of ​​scale, total consumer spending in May 2024 and 2.5 million downloads was estimated at $28.8 million.

Many of these app categories are experiencing rapid growth, with math problem solvers reporting 43% year-over-year sales growth, followed by grammar helpers (+40%), password managers (+38%) and track apps (+28%). ) However, emoji creation apps declined by -17% year-over-year.

In terms of downloads, grammar helpers had 9.4 million installs in the last 12 months, followed by emoji creators (10.6 million), math problem solving apps (9.5 million) and password managers (457,000 installs).

While these apps certainly have a dedicated user base that may not immediately decide to switch to first-party offerings, Apple’s ability to offer similar built-in features could be detrimental to their potential growth. Average users may be satisfied with Apple’s “good enough” solutions and won’t look for alternatives

However, apps that continue to develop new features and improvements that go beyond what Apple offers and leverage other new ways to reach users, such as Apple’s improved Siri, may have a better chance than others.