Pixel Envy

Written by Nick Heer.

The App Effect

Mayur Dhaka:

Apple ran a video at WWDC last year called The App Effect. In it, Apple tries to deliver the message that the App Store is a platform that gives big companies and one-man-shows a level playing field. Case in point, the video at 1 minute, 46 seconds has Instagram’s CEO saying ‘You know it’s a testament that two guys in a room working on an idea can launch an app and instantly have hundreds and millions of people very quickly’.

The more I think about it, the more I think that the rumour of paid search results in the App Store is just one idea floating around within a small team of people. That it would improve the App Store’s profitability sounds like an interpretation of the writers of the original Bloomberg story.

What concerns me is that this story would have been immediately written-off prior to the introduction of iAd, or even just a few years ago. It is entirely unlike Apple. But recent decisions — such as the introduction of an interstitial ad displaying to users not subscribed to Apple Music, or the other interstitial ad that displayed on older iPhones after the introduction of the 6S — makes this all the more likely. That it’s even within the realm of possibility is worrying.