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Sep

13

What do Apple’s App Store rejections mean for you users and startups?

Android, Apple, Editorials, Google, Mobile, Nokia, Predictions, iPhone, iPodTouch 

Yesterday, Apple pulled an application named Podcaster from the iPhone App Store. With Podcaster, iPhone/iPod Touch users could “update podcasts directly on the device over wifi.” Apple rejected the application because

Podcaster assists in the distribution of podcasts, it duplicates the functionality of the Podcast section of iTunes.

This is about as anti-competitive as it gets - applications that threaten iTunes’s monopoly over loading content to/from iPhone/iPod Touch will not be allowed on to Apple’s iPhone App Store. John Gruber of Daring Fireball fame has more to say about Apple’s exclusionary policies.

So some apps are banned. So what?

This is a big deal because App Stores are becoming an important way (and for iPhone/iPod Touch, the only way) to add functionality to a mobile device - whether it’s from Apple or Nokia or Android. Installing applications on your mobile phone is tricky at best and throw-your-hands-up-it’s-impossible at worst, which is why such App Stores (which make the job much simpler) will gain a lot of traction in the months to come. This places enormous power in the hands of App Store owner - either the handset or mobile OS manufacturer.

Simultaneously, as mobile devices become ubiquitous, more capable and more functional (because of these apps), an application ecosystem will begin to form - there are already over 3000 applications for iPhone/iPod Touch on Apple’s App Store, with small startups entirely dependent on the money they make from sales through the Store. Indeed, Kleiner Perkins has set up an iFund to invest in startups that make apps for iPhone, and there’s a RIM-backed Blackberry Fund too. How much longer before we start seeing the same interest in Nokia/Android application startups?

But this rosy picture could be in jeopardy if such rejections - either arbitrary or anti-competitive - become more commonplace. It’ll scare application developers, and drive away investors. And a multi-billion dollar (because of the sheer numbers of mobile devices) global opportunity could be lost, lost even to the party behind the App Store itself.

What are mobile app startups and users likely to do?

There are two things, both of which are likely to happen:

1.) Web apps that try to offer the same functionality will pick up speed. No App Store will be able to restrict what web-based applications users choose to use. Tomorrow, the Twitter client Twitterrific might be in the soup (because it has a built-in browser and mimics the functionality of Apple’s own Mobile Safari browser - you never know),  but the web-based Hahlo twitter client for iPhone/iPod Touch will face no such problems because Apple has nothing to do with it (and vice versa).

Ordinarily, I’m a strong proponent of native applications for mobile devices (at this stage of the industry). But circumstances are going to push app developers harder to write Good Web Apps.

2.) More jailbroken iPhones. Ironically, this warranty-voiding way of installing third-party applications is also the most open, offering several more native applications with fewer Apple-enforced restrictions. Developers will work harder to make it easier for customers to jailbreak their iPhones and iPods Touch.

Both these trends will represent a move away from the App Store.

Conclusion

As the technology industry becomes more open than ever (open software and hardware standards, community-based platforms for communication, convergence of desktop and mobile), this move towards closed application ecosystems is an anachronism.

More restrictions will mean more effotrs to circumvent (or just abandon) the App Store - whether from Apple or Nokia or Google’s Android. From the App Store owner’s ponit of view, this will be killing the golden goose - and the loss of possibly billions of dollars in revenue.


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