App Store (iOS)

The App Store is an app store platform, developed and maintained by Apple Inc., for mobile apps on its iOS and iPadOS operating systems. The store allows users to browse and download approved apps developed within Apple's iOS Software Development Kit. Apps can be downloaded on the iPhone, iPod Touch, or the iPad, and some can be transferred to the Apple Watch smartwatch or 4th-generation or newer Apple TVs as extensions of iPhone apps.

The App Store was opened on July 10, 2008, with an initial 500 applications available. The number of apps peaked at around 2.2 million in 2017, but declined slightly over the next few years as Apple began a process to remove old or 32-bit apps that do not function as intended or that do not follow current app guidelines. , the store features more than 1.8 million apps.

While Apple touts the role of the App Store in creating new jobs in the "app economy" and claims to have paid over $155 billion to developers, the App Store has also attracted criticism from developers and government regulators that it operates a monopoly and that Apple's 30% cut of revenues from the store is excessive. In October 2021, the Netherlands Authority for Consumers and Markets (ACM) concluded that in-app commissions from Apple’s App Store are anti-competitive and would demand that Apple change its in-app payment system policies.

History

While originally developing iPhone prior to its unveiling in 2007, Apple's then- CEO Steve Jobs did not intend to let third-party developers build native apps for iOS, instead directing them to make web applications for the Safari web browser. However, backlash from developers prompted the company to reconsider, with Jobs announcing in October 2007 that Apple would have a software development kit available for developers by February 2008. The SDK was released on March 6, 2008.

The iPhone App Store opened on July 10, 2008. On July 11, the iPhone 3G was released and came pre-loaded with support for App Store. Initially apps could be free or paid, but then in 2009, Apple added the ability to add in-app purchases which quickly became the dominant way to monetize apps, especially games.

After the success of Apple's App Store and the launch of similar services by its competitors, the term "app store" has been adopted to refer to any similar service for mobile devices. However, Apple applied for a U.S. trademark on the term "App Store" in 2008, which was tentatively approved in early 2011. In June 2011, U.S. District Judge Phyllis Hamilton, who was presiding over Apple's case against Amazon, said she would "probably" deny Apple's motion to stop Amazon from using the "App Store" name. In July, Apple was denied preliminary injunction against Amazon's Appstore by a federal judge.

The term ''app'' has become a popular buzzword; in January 2011, ''app'' was awarded the honor of being 2010's "Word of the Year" by the American Dialect Society. "App" has been used as shorthand for "application" since at least the late 1970s, and in product names since at least 2006, for example then-named Google Apps.

Apple announced Mac App Store, a similar app distribution platform for its macOS personal computer operating system, in October 2010, with the official launch taking place in January 2011 with the release of its 10.6.6 "Snow Leopard" update.

In February 2013, Apple informed developers that they could begin using appstore.com for links to their apps. In June at its developer conference, Apple announced an upcoming "Kids" section in App Store, a new section featuring apps categorized by age range, and the section was launched alongside the release of iOS 7 in September 2013.

In 2016, multiple media outlets reported that apps had decreased significantly in popularity. '' Recode'' wrote that "The app boom is over", an editorial in '' TechCrunch'' stated that "The air of hopelessness that surrounds the mobile app ecosystem is obvious and demoralizing", and ''The Verge'' wrote that "the original App Store model of selling apps for a buck or two looks antiquated". Issues included consumer "boredom", a lack of app discoverability, and, as stated by a report from 2014, a lack of new app downloads among smartphone users.

In October 2016, in an effort to improve app discoverability, Apple rolled out the ability for developers to purchase advertising spots in App Store to users in the United States. The ads, shown at the top of the search results, are based strictly on relevant keywords, and are not used to create profiles on users. Apple expanded search ads to the United Kingdom, Australia and New Zealand in April 2017, along with more configurable advertising settings for developers. Search ads were expanded to Canada, Mexico and Switzerland in October 2017. In December 2017, Apple revamped its search ads program to offer two distinctive versions; "Search Ads Basic" is a pay-per-install program aimed at smaller developers, in which they only pay when users actually install their app. Search Ads Basic also features an easier setup process and a restricted monthly budget. "Search Ads Advanced" is a new name given to the older method, in which developers have to pay whenever users tap on their apps in search results, along with unlimited monthly budgets. .

In January 2017, reports surfaced that documentation for a new beta for the then-upcoming release of iOS 10.3 detailed that Apple would let developers respond to customer reviews in the App Store, marking a significant change from the previous limitation, which prevented developers from communicating with users. The functionality was officially enabled on March 27, 2017 when iOS 10.3 was released to users.

Apple also offered an iTunes Affiliate Program, which lets people refer others to apps and other iTunes content, along with in-app purchases, for a percentage of sales. The commission rate for in-app purchases was reduced from 7% to 2.5% in May 2017 and discontinued completely in 2018.

In September 2017, App Store received a major design overhaul with the release of iOS 11. The new design features a greater focus on editorial content and daily highlights, and introduces a "cleaner and more consistent and colorful look" similar to several of Apple's built-in iOS apps.

Prior to September 2017, Apple offered a way for users to manage their iOS app purchases through the iTunes computer software. In September, version 12.7 of iTunes was released, removing the App Store section in the process. However, the following month, iTunes 12.6.3 was also released, retaining the App Store, with ''9to5Mac'' noting that the secondary release was positioned by Apple as "necessary for some businesses performing internal app deployments".

In December 2017, Apple announced that developers could offer applications for pre-order, letting them make apps visible in the store between 2–90 days ahead of release.

On January 4, 2018, Apple announced that the App Store had a record-breaking holiday season according to a new press release. During the week starting on Christmas Eve, a record number of customers made App Store purchases, spending more than $890 million in that seven-day period. On New Year's Day 2018 alone, customers made $300 million in purchases.

In September 2019, Apple launched Apple Arcade, a subscription service for video games within the App Store.

In March 2020 Apple made "Sign in with Apple" mandatory for any apps that use third party logins (such as signing in with a Google account, etc.) As part of the new App Store guidelines, the deadline for developers to implement the feature was April 30.

In 2019 and 2020, Apple was frequently criticized by other companies such as Spotify, Airbnb and Hey and regulators for potentially running the App Store as a monopoly and overcharging developers, and was the target of lawsuits and investigations in the EU and United States. A conflict between Epic Games, the creator of the Fortnite game and Apple led to the lawsuit Epic Games v. Apple. In December 2020, Apple announced that they would introduce a "Small Business Program" which lowers Apple's revenue cut for app developers making less than USD 1 million per year from 30% to 15%. Additionally, governments such as in China, India and Russia have increasingly required Apple to remove specific apps, with the threatened removal of some apps often becoming part of geopolitical feuds.
In January 2022, Apple added support for unlisted apps to the App Store. These apps can only be downloaded via direct links, and do not appear as search results.

Development and monetization

iOS SDK

The iOS SDK ( Software Development Kit) allows for the development of mobile apps on iOS. It is a free download for users of Mac personal computers. It is not available for Microsoft Windows PCs. The SDK contains sets giving developers access to various functions and services of iOS devices, such as hardware and software attributes. It also contains an iPhone simulator to mimic the look and feel of the device on the computer while developing. New versions of the SDK accompany new versions of iOS. In order to test applications, get technical support, and distribute apps through App Store, developers are required to subscribe to the Apple Developer Program.

Combined with Xcode, the iOS SDK helps developers write iOS apps using officially supported programming languages, including Swift and Objective-C. Other companies have also created tools that allow for the development of native iOS apps using their respective programming languages.

Monetization

To publish apps on App Store, developers must pay a $99 yearly fee for access to Apple's Developer Program. Apple announced that, in the United States starting in 2018, it would waive the fee for nonprofit organizations and governments. Fee waivers have since been extended to non-profits, educational organizations and governments in additional countries.

Developers have a few options for monetizing their applications. The "Free Model" enables free apps, increasing likelihood of engagement. The "Freemium Model" makes the app download free, but users are offered optional additional features in-app that require payments. The "Subscription Model" enables ongoing monetization through renewable transactions. The "Paid Model" makes the app itself a paid download and offers no additional features. Le