As the App Store Turns 10, We Take A Look Back

The App Store opened July 10, 2008, transforming the way we communicate, work, play and learn. 

Image via Apple

Over the last ten years, the App Store has revolutionized the world, introducing the concept of apps, democratizing software distribution and igniting innovation. Today there are customers in over 155 countries worldwide and over $100 billion has been paid out to developers. 

Apps themselves are a global phenomenon, in use by people of all ages and backgrounds.

Apps have become part of the daily lives of people all over the world, and an essential part of their personal goals, play and productivity. This revolution continues today.

Creating a Safe, Trusted App Marketplace

Prior to the launch of the App Store, the software industry was dominated by a few powerful players. An individual software developer could not put out his or her own software as the cost of distribution was too high to compete with the big players. The App Store changed all of this, allowing anyone whether they were a single developer, a small studio or large company, put out a custom app of their own design and reach customers all over the world. The App Store opened the door for any developer.

The App Store also emphasized consumer privacy and set up guidelines for developers to ensure this and a security process for app submissions. This protected consumers and ensured that the App Store was a safe marketplace for consumers, while providing them with an excellent experience as well. Over the years, the App Store has added categories and different ways to discover and access apps. The App Store has become enormously successful over the years and by June 2018, had paid out $100 billion to developers.

Last year, Apple unveiled its new App Store, with dedicated Games and Apps tabs to help customers find what they were looking for and other features to encourage discovery and access to new apps. The Today tab also spotlights compelling app stories. Customers can now also learn more about the people who created apps they love to use. These stories have been read by over 1 million people and that number continues to grow. The App Store itself sees over 500 million visitors per week who now spend more time exploring and discovering new apps.

Inspiring New Mobile-First Businesses and the App Economy

The App Store and the popularity of the iPhone in 2007 and iPad soon after in 2010, led to the rise of new mobile-first businesses. The App Store inspired new ideas and opened the doors for individual advancement through app companies, solo entrepreneurs and smaller studios. The iPhone ignited business transformation in the ways people communicate, work, learn and play and the App Store laid down the foundation for using 'apps.' A new method of sharing information was born - apps. Apps could serve any industry.

“Over its 10 years so far, the App Store has developed into the richest, most diverse, and most accessible software ecosystem the world has ever seen.”

— Marco Arment, developer of Overcast

The App Store empowered many people all over the world to be successful and creative in ways that had never been achieved before.

How Customers Interact with Business

In the last 10 years, apps have become an important method of customer interaction with businesses. Apps help people in their everyday lives, from personal motivation and fitness to paying bills, shopping, booking hotels, paying for flights or making dinner reservations. In most aspects of a person's life, there's an app for that.

Billion Dollar Startups Influence Existing Businesses To Build Apps

Several startups ranging from Instagram, Uber, Lyft and Instacart used iPhone features such as the built-in camera, Apple Pay, GPS and Location Services to provide their customers with personalized, on-demand experiences. Their businesses began as apps in the App Store. Their success and popularity among customers also led to the development of apps from existing web-based businesses such as Facebook, AirBnB and Amazon.

In 2016, there were 83,000 app releases per month. While this number has slowed down, the number of app updates has skyrocketed. By November 2017 with the launch of the new iPhone X, there were 477,000 app updates per month so that apps can remain relevant to users. On average, an app is updated 1.4 times per month. Games, business and utility apps are the most popular apps to make among developers.

Gaming

Since its launch, the App Store has been the most popular marketplace for games, from new games such as Angry Birds to favorites such as Pokémon Go, Pac-Man and Super Mario Run, a new experience based on the popular Super Mario game by Nintendo.

“We are very happy that we are able to deliver Super Mario Run, a new Super Mario experience that could be played with just one hand on iPhone, to hundreds of millions of consumers because of the App Store. The App Store allows us to share the joy of Nintendo games with many new audiences, and we will continue striving to provide unique and new game experiences to App Store customers.”

— Shigeru Miyamoto, Nintendo

The App Store also brought gaming mainstream, largely in part due to the ease of use of Multi-Touch technology on both the iPhone and iPad and being able to play on the go. 

“We built our entire team around the App Store, and we’ve been able to have millions of people around the world play our games who never would have considered themselves gamers. The App Store refresh has shown players the creators behind the apps they enjoy everyday. Humanizing apps can only be a good thing and showcasing how they’re made will inspire the next generation of creators from every corner of the world.”

— Dan Gray, head of studio, ustwo Games, creators of Monument Valley

Subscriptions

Subscriptions has offered a way for developers and companies to earn income from apps. Customers are able to first try out the apps with a free version and then pay to unlock different levels of functionality. $1 billion was paid out to developers from IAP and paid apps by June 2010.

Streaming Video and Entertainment on the Go

Watching TV shows, movies and video on the go has been growing worldwide and the App Store has been at the forefront of this, as customers love to watch videos using their iPhones and iPads. Today there are many service providers such as HBO, Netflix, Sling TV and Hulu that provide high quality shows for customers anywhere, anytime.

“When we decided to introduce HBO NOW, there was never a question that our exclusive launch partner had to be Apple. Announcing the streaming service with Apple and the arrival of HBO NOW on the App Store is one of the most significant moments in HBO’s storied history.”

— Richard Plepler, chairman and CEO, HBO

Education

Apps have also unlocked new ways to learn, be productive and to create, especially with the launch of the iPad in 2010. Today there are over 1.3 million apps for the iPad. Apple also launched  Swift Playgrounds, an iPad app to teach coding concepts for students of all ages to learn Apple's own coding language, Swift. Apple has also supported learning and education through its own free labs and workshops at Apple Stores with Today at Apple, Everyone Can Code initiatives and through the WWDC annual event. 

Health and Fitness Apps

The App Store has also helped advance innovation in health and fitness with medical apps and health monitoring capabilities built into the iPhone such as HealthKit and Apple Watch. This has also inspired customers to be more mindful of their health and to be more active. Over 500 doctors and medical researchers have used Apple’s ResearchKit and CareKit software tools for clinical studies on topics varying from autism and Parkinson’s disease to post-surgical at-home rehabilitation and physical therapy.

“Over the last 10 years, the App Store has contributed to the advancement of innovation in patient care by creating a platform for state-of-the-art medical apps like Corrie at Johns Hopkins. Our mobile health research relies on the App Store to deliver life-saving and life-changing apps to our patients.”

— Francoise A. Marvel, MD, Corrie Health Team, John Hopkins University

What Lies Ahead: Augmented Reality

Augmented Reality (AR) became available to users practically overnight with the launch of iOS 11 in 2017, making the App Store the largest AR platform in the world. AR enables creators to bring virtual experiences into the real world. This is transformative and changes the way customers play and work. ARKit continues to grow and evolve with the latest iteration allowing shared experiences with multiple players for a game or project collaboration.

App usage is also growing into other areas, such as automotive displays and televisions. Apps have made a tremendous contribution to the quality of life for people all over the world, while providing a personalized individual experience. Having apps on an iPhone removes the need for an immediate pen and paper, carrying an additional camera or laptop for messaging and quick email. Apps opened the door to portability and new ways of interacting with people and the environment.

We are excited to create, design and engineer apps for our clients for the iOS ecosystem from iPhones and iPads to Macs, Apple Watches, Apple TV and Car Play. Thanks for reading!

Potential Apple Watch Series 4 Features: Solid State Buttons and EKG Functions, Making the Apple Watch More Water-Resistant, Durable and Useful

The next generation of Apple Watch (Series 4) expected to launch in the fourth quarter of 2018 or in early 2019, may have solid state buttons that do not actually click, but instead use Apple's Taptic Engine to give haptic feedback to users, according to a report by Fast Company.

Image via Apple

This redesign would be the first aesthetic change to the Apple Watch since 2015. The Digital Crown and button on the side of the device would still exist, and the crown would continue to physically rotate through content, but the buttons would vibrate in response to the haptic effect of the Taptic Engine and not require physical touch to work. This change is similar to the change in the iPhone that went from using a home button to a solid-state design in 2016 with the launch of the iPhone 7. A solid state design makes the Apple Watch increases longevity by being more durable and also makes the Apple Watch more water resistant by removing the need for a physical button because the buttons no longer need enlarged chassis cutouts to handle constant motion. This in turn, frees up space for a larger battery.

Image via Apple

A Closer Look at the Taptic Engine

In its first Apple Watch, Apple introduced its new Taptic Engine, a linear actuator that could transform advanced control signals into different feedback models. The actuator has magnetic drivers that can start and stop movement of a large internal weight precisely, thus responding to a large range of vibrations from light taps to long, extended vibrations. These haptic sensations are thus monitored and measured. The Taptic Engine can replicated taps, vibrations and a human. heart beat. This original technology was added to the iPhone to replace the physical home button and then also added into the trackpads of MacBooks.

Heart Rhythms and EKG Functions

Image via Apple

Apple has also been developing the sensors in the tops of the buttons to gather health data such as heart rhythms. Currently, the heart rate sensor on the back  of the watch is able to do this through direct contact with the skin, but other measurements require additional contact and this could be achieved using the solid-state design. 

Apple is also expected to integrate capacitive sensing technology into the new button system in a bid to increase health monitoring capabilities. A second point of contact to the user's skin would help collect electrical signals flowing through a user's body. 

The Apple Watch is expected to have EKG monitoring capabilities, according to a report last year from Bloomberg. This would help in detecting arrhythmia and stroke risks. The Apple Watch has already helped users detect heart problems and diseases, thus seeking treatment.

This new technology may function similar to the AliveCor's Kardia Band EKG accessory that has two sensors - one inside the band contacting the wrist of the Apple Watch user, and an external one that interacts with the user's finger from the other free hand (not wearing the watch). An EKG reading is possible by sending a current between the sensors and across the user's chest.

Image via Apple

Apple Watch Helps Users Detect Heart Problems and Diseases

This summer, using an Apple Watch helped a young Australian man discover a hole in his heart. 24-year-old Adam Love discovered that his heart was beating too fast (130-140 minutes per minute) when he slept for about six hours pr night. This prompted him to seek medical attention. Doctors discovered he had literally a hole in his heart. The young man was able to get heart surgery and leave the hospital soon after. He told the local 9 News station in Australia about his experience.

“I don’t think I’d live without one now. I love it for the convenience but also the fact it just picked up something medically that I had no idea about and it potentially saved my life.”

— Adam Love, Apple Watch user

Earlier this year, a teenager in Florida, Deanne Recktenwald, discovered that her resting heart rate was dangerously high at 190 beats per minute. The Apple Watch gave her an alert to seek medical attention, which she did at the local Tampa hospital where she discovered she had chronic kidney disease. The medical team there was surprised at how accurate the Apple Watch reading was. The teenager's mom, Stacey, spoke with ABC local news.

“It was alarming that the watch was telling us to seek medical attention. I didn’t even know that it had the capability of giving us that alert.”

— Stacey Recktenwald, Deanna’s mother

Long-Term View - No Buttons At All

It is also rumored that Apple's industrial design group is moving towards the elimination of buttons altogether long-term where the Apple Watch would instead respond to touches by the finger on specific parts of the Apple Watch body - areas that would be linked to capacitive touch sensing modules and tie to an onscreen interface. This would help eliminate physical features from the device, similar to the removal of the headphone jack in the iPhone 7 and the home button in the iPhone X.

Highlights and Great Insights from Apple's Investor Call

Here are some of the highlights and great insights from Apple's Q3 Investor call July 31st. Apple had one of it best quarters ever, growing in each of its 15 major markets, with revenue up by more than 20 percent year over year in the US alone.

Image via Apple

iPhone

“The smartphone market is very healthy. I think it is the best business in the world to be in.”

— Tim Cook, Apple CEO

There has been ongoing growth with iPhone X, iPhone 8 and iPhone 8 Plus. Regarding iPhone X, Tim Cook, Apple CEO, pointed out that customers always want innovative products. iPhone SE did not fare as well as it did a year ago.

In the fiscal third quarter of 2018, Apple generated $53.3 billion in revenue, selling 41.3 million iPhones. Apple picked up global marketshare worldwide in smartphone and tablet markets. There has been double digit growth in mainland China, across iPhone, iPad, Services and other categories. Also, users with an actively installed base of the iPhone grew double digits since a year ago. iPhone channel inventory has been reduced by 3.5 million, company on lower end of targeted 5 weeks to 7 weeks of inventory. Also some replacement cycles are lengthening, with a major catalyst of the change being the extinction of iPhone subsidies from carriers.

Image via Apple

App Store, Subscriptions and Developers

Over $100 billion paid to developers from App Store since opening. Paid subscriptions exceed 300 million, a 60 percent growth in just the last 12 months. There are over 30,000 apps offering subscriptions now in the App Store. There has been over 400 million users involved in beta testing macOS Mojave, iOS 12, tvOS 12, and watchOS 5.

While iOS and MacOS systems are different, some frameworks have been migrated to the Mac. There has also been 100 percent year-over-year growth in video streaming subscriptions through apps.

Image via Apple

Apple Pay

There are now over 1 billion Apple Pay transactions in fiscal year, tripling growth year over year. Apple Pay's growth has surpassed Square and even Paypal's mobile transactions in Q3. Apple Pay is coming to CVS.

Apple News

The number of articles read on Apple News has doubled year-over-year.

Siri

Siri has answered over 100 billion requests in 2018.

Macs and iPads

The vast majority of SalesForce's 35,000 employees are on Macs. 60 percent of quarterly Mac sales originated from new users. The sale of Macs was low compared year-over-year because of fourth quarter MacBook Pro release.

More than half of iPad sales in the quarter were sold to new users. More than half of iPad sales in the quarter were sold to new users. iPad customers reported a high 94 percent satisfaction rate. 75 percent of businesses that are planning to buy tablets in the United States, will buy iPads. 

Messages and FaceTime

There has been accelerated growth in monthly active users and FaceTime calls in Messages.

Education

More than 5000 schools and colleges have adopted Everyone Can Code programs. More than 300 schools are adopting Everyone Can Create in the fall.

Apple Music

Image via Apple

“Extraordinary opportunity in that business to grow the market well.”

— Tim Cook, Apple CEO

Revenues on Apple Music grew over 50 percent over the quarter. There are now 50 million Apple Music listeners across paid subscriptions and free trials.

Image via Apple

AirPods

AirPods sold as fast as Apple could make them.

Movies

This fall, iTunes will host the largest repository of Dolby Atmos movies anywhere.

AppleCare and Service Growth

AppleCare has had its highest growth rate in the last 18 quarters. Tim Cook also mentioned that Apple will be offering some new services, but did not elaborate further.

AR

Augmented Reality (AR) offers limitless growth opportunities. Apple is working with enterprise business to change how things can be done, using AR. 

Cash, Debt and AAPL Shares

$6 billion in debt has been retired, with a net cash value of $129.1 billion dollars corrected with outstanding debt. $20 billion in AAPL (Apple stock) was purchased on the market and retired, of which 112.8 million shares were repurchased.

On Tariffs

While Apple has not been affected the first three trade tariffs, they are still evaluating the most recent fourth tariff that is out for public comment. Tariffs would translate to additional taxes paid by consumers and Apple will share its thoughts with the White House before the public period for commenting ends.
 

On Customer Service

“Treat the users and customers well, and you have a great business over time.”

— Tim Cook, Apple CEO