The number seven has long held considerable significance. The Babylonians gave us the seven-day week based on the (then known) seven heavenly bodies. There are seven notes on the musical scale. Seven colors in the color spectrum. Seven-minute workouts. And Seven and Seven makes for a tasty beverage.
But today we celebrate another significant seven – that is, the number of years since the App Store revolutionized the software industry and sparked the vibrant app economy.
When Apple’s App Store opened in 2008, there were 500 apps available. They ranged from productivity apps like Evernote to games like Crash Bandicoot Nitro Kart 3D.
It was an instant success.
Within four days, Apple reported that more than 10 million apps had been downloaded and there was a 60 percent increase in the number of apps available on the store.
Within six months, it was widely known that for life’s trials, tribulations and needs, there’s an app for that.
The app market exploded with the launch of Apple’s App Store, revolutionizing the software industry. Independent developers who wrote software for large platforms or enterprise products, all of the sudden were able to market directly to consumers. The App Store eliminated the hassle of managing transactions, marketing, and publishing while providing a curated platform that kept pirates at bay.
Free from those distractions, software developers could concentrate fully on creating new apps. This freedom and opportunity provided the conditions for a new wave of entrepreneurism. Innovators from around the globe quickly launched new companies that experienced rapid growth and investment.
By 2012, the app industry grew to a $20 billion industry and had created nearly 600,000 new jobs, many in fields beyond coding like graphic design and marketing.
But those jobs didn’t just come from industry giants.
From its beginning, startups and small companies have been the engines of innovation behind the mobile marketplace. ACT | The App Association’s reports on the app economy have consistently found that more than three-quarters of the top grossing apps are made by small companies, with 80 percent of them calling the U.S. home.
And those companies are found across the country, with 77 percent located outside Silicon Valley, based in places like Kennebunkport, Maine and Charlotte, North Carolina.
In 2015, this growth shows no signs of abating. With more than 3.17 million apps available, the app economy is now a $120 billion industry – and the developer population is predicted to grow by 800,000 by year’s end.
The recent release of the Apple Watch provides an entirely new platform for app makers as well. Launching with more than 3,000 Watch apps, many companies saw the early opportunity. Our most recent iOS app economy report found the fastest adoption of the new device by app makers in the categories of health, weather and finance.
With a whole new set of sensors and tools with watchOS 2, and the fast-paced, nimble nature of the mobile marketplace, the aforementioned numbers will soon be obsolete.
In less than a decade, Apple’s App Store has helped revolutionize how we work, play, shop, communicate, and manage our health. Entrepreneurs are thriving and creating jobs across a broad range of skill sets. And the innovation keeps coming. Stay tuned, and cheers to seven years!
Want a deeper look back? Access all of ACT | The App Association’s app economy reports:
June 2015 – WWDC Preview: The iOS App Economy
Oct. 2014 – State of the App Economy 2014
Sept. 2013 – The European App Economy
July 2013 – App Store After Five Years
June 2012 – Apps Across America