Apps explosion

It’s been hailed as the greatest shift in technology since the advent of the Internet. We’ve become obsessed with mobile application software. Also known as “apps”, they are the bite-size software programs that people load onto their smart phones and tablet computers.

In 2007, virtually no mobile apps existed. Today, mobile users have literally millions of apps from which to choose. According to technology research firm, Gartner, more than 102 billion apps were downloaded in 2013. This figure is expected to rise to a mind-boggling 268 billion downloads in 2017. 

The mobile app industry is dominated by two giants - Apple’s App Store and Google’s Play Store. Apple launched its app store in July 2008 to distribute free and paid-for applications for iPhones. Three months later, Google followed suit with its play store for Android-based phones. 

Apple and Google each have over 1.2 billion apps available on their respective platforms for download. The most popular apps category is games. This is followed by business, education and lifestyle. A game called Candy Crush is the most liked apps game on the planet. 

Apps increase the scope of what a mobile device can do and enable users to bank, shop and do almost anything online. People use apps to deliver news, book flights, arrange accommodation, split bills, order meals, play music and navigate cities.

Technology buffs use apps to virtually run their lives. From the moment they wake up (to an app, of course), it’s a case of “life on demand” with technology embedded in every aspect of their day. They use apps to get the weather forecast, locate their nearest coffee shop and take their pulse. 

With millions of apps at your fingertips, you can find one to satisfy almost any need. Let’s say you wanted to visit Sydney “virtually”. You can download an app that will let you “explore” the Sydney Opera House and another that will show you the surf conditions at famous Bondi Beach. 

To quote one clever headline writer, we’ve become “the planet of the apps”. But there are early signs that app fatigue may be setting in with consumers becoming more selective about what apps they download. Notwithstanding this, consumers are spending more time using their favourite apps. 

Mobile apps are popular because mobile search is currently poor and apps layout content in a small-screen, friendly way. However, there is only so much storage space on a smart phone and downloading individual apps and opening them for separate services is predicted to become a thing of the past. 

In the future, according to one report, apps will serve as notification systems that push content out as necessary - not big bulky icons that take up prime homepage real estate on our smart phones. This will become increasingly important as screen sizes decrease to that of a (smart) watch. 

In the words of one expert: 

The current web is “pull-based”, meaning we visit websites or download mobile applications. The future of the web is “push-based”, meaning the web will be coming to us. In the next 10 years, we will witness a transformation from a pull-based web to a push-based web. 

Regardless as to whether we find content (pull down) or it finds us (push out), mobile apps will play an increasing role in our lives. Take banking as an example. In many parts of the world, more people now use mobile devices to do their banking than desktop computers. 

The mobile-only customer is on the rise and businesses need to adjust accordingly. To this end, Google recently changed the way it ranks searches. It now prioritises companies with “mobile-friendly” websites when people use the search engine on their smart phones or tablet computers.

These mobile devices, replete with apps, may be small but they are having a big impact on society. According to Forbes magazine, this year the app economy is expected to reach $100 billion. It’s clear that the mobile society has become pervasive - and it’s here to stay.

Regards

Paul J. Thomas, CEO

With an impressive track record in financial services spanning over three decades, Paul Thomas is the Chief Executive Officer of Gateway Credit Union. Gateway is a leading Australian Credit Union and has been proudly looking after Australians and their family’s banking needs for sixty years. Visit www.gatewaycu.com.au