Apps Rule The World, But For How Long?
Currently, apps dominate our mobile devices, but will this always be the case?
The app ecosystem underpins the mobile phone economy. Smartphone ownership is now ubiquitous. We have a form of technology that connects us all. Historically apps have been the way we interface with one another via our phones. For years, investors and app builders have been counting on the fact that mobile phone ownership will continue to grow. But is there a flaw in this supposition?
Software Surge
TechCrunch said in 2014, “With the widespread adoption of mobile devices and the continued improvement of the hardware layer, alongside the creation of a robust app economy, it has become possible for us to access incredibly powerful software quite literally from the palms of our hands.”
Three years after that assessment, we’re beginning to see signs that while mobile usage will continue to dominate over desktop. Apps may not be the default way we use and interact with our phones moving forward.
Streaming Success
The first sign of what is coming emanates from Japanese internet giant Rakuten Inc. Bloomberg Technology reports that the company is planning for a future where the mobile experience is not dominated by apps:
“The e-commerce company unveiled Rakuten Games on Tuesday, seeking to deliver titles that don’t have to be installed on phones or personal computers. The games can be played on web browsers or within other apps, making it easier for users to play with each other without having to wait for new software to be loaded onto their devices.”
Bloomberg went on to say that: “The company’s frequent-shopper points — Rakuten Super Points — can be exchanged for in-game currency to buy virtual items, while deeper integration with the company’s messaging app Viber is planned.”
One-Stop Shop
Facebook represents another example of the move away from the app ecosystem. Increasingly, the internet giant seems to be offering everything in one place for its users. From messaging and photo sharing, to marketplace commerce and money transfer Facebook has it all. Before, you might have needed four different apps to do these things. Now you simply have to log into Facebook.
The social network has even been accused of being the “real ad-blocker” as users often don’t leave the platform to read an article. Instead readers are using the network’s “instant articles” function. There’s reason to believe Facebook is not done integrating more services under its umbrella. The company recently released “instant games” which allows users to play HTML5 games without ever leaving.
Future App Applications
While this trend could still go either way it’s worth considering the implications. We could see users reject the trend, but it’s unlikely. Getting rid of the app ecosystem in favor of more all-inclusive models like Rakuten or Facebook would essentially create more internet monopolies. Meaning companies offer you everything from shopping to messaging to gaming. But the question is are these better for the consumer? Or do they simply crowd out smaller competition and result in lower quality functionality?
When companies like Rakuten take this a step further by offering rewards, like Rakuten super pointsfor users who game within their system, it’s easy to see why a consumer might like it. Considering the larger picture, there is a danger that these internet monopolies will result in several massive, boring companies offering us everything. Even more worryingly, companies could own all of our data concurrently.
Survival of the Fittest App
Competition is seen as good for a market, and regulators certainly like to see competition maintained to prevent any one company from getting too powerful. However, in the tech industry—which crosses borders and doesn’t have a single regulator—this will be difficult to prevent. Ultimately it may be up to consumers to decide if they want to give fewer companies more of their screen time. Certainly it means that apps may already be on their way to being consigned to history. Will it matter?