The Year: 2008.
You’ve just traded in your pink Razr flip phone for a newfangled iPhone that seems to be everywhere these days. And that means: access to apps. Back then, we were so excited about them, we created apps just to have them. (Anyone else remember the one that simulated a beer being drunk? Pointless. Useless. They made it just to make it—and we pretended to drink. It. Up.)
All of a sudden, we were connected to everything at the drop of a “Download Now” in the App Store. Apps revolutionized the way we bank, pay bills, communicate, diet, exercise, listen to music, and more. They turned the cell phone from optional to indispensable and opened up an entire untapped market of potential.
Between 2010 and 2020, app usage officially overtook desktop logins, with more and more people relying on apps as a vital component of daily life.
The 2021 Burst
Fast forward a decade and a half, and while the digital haze hasn’t exactly cleared, it has refined itself. As of 2021, app downloads have largely plateaued, with some indicators showing that downloads have even slightly declined. Why?
Part of it is overwhelm and app saturation. Most people have around 80 apps downloaded to their phone, yet only use 8 to 10 of them regularly.
There’s also been a shift to so-called app ecosystems. Many of us have had that moment where we feel exasperatedly chained to our smartphones and vow to trade them in for flip phones and disconnect. What stops us? The fact that Apple essentially owns our lives. Attempting to work, live, exercise, and listen to music is inexorably linked to the Apple user experience. Any stress saved by simplifying would likely be doubled by the struggle to bridge those gaps.
The same is true for Google. The “Google-sphere” insists upon itself, with services like Google Assistant blurring app boundaries altogether.
Because of this abundance, most apps face incredibly high turnover. In fact, 70% of users install and then uninstall an app within about 90 days—always on the hunt for the next “perfect” solution.
Meanwhile, the rise of AI is making certain app categories—like travel plans, driving directions, and restaurant reservations—obsolete. Voice interfaces like Alexa, Siri, and Google Assistant, along with generative AI tools, are collapsing the need for standalone apps in many cases.
And then there’s competition from the “Big Six” (YouTube, Facebook, TikTok, WhatsApp, Instagram, and Gmail), which together eat up around 90% of consumer app time.
So, Should You Even Bother?
In a word: yes.
While the competition has gotten more cutthroat, apps remain a foundational layer of digital engagement. They’re crucial for services like navigation, messaging, media consumption, and customer loyalty.
It’s true—the explosive, Wild West-style gold rush of app creation is behind us. But that just means users are demanding quality experiences. They want apps that make their lives easier and make their time feel valued.
The app isn’t dead—but it’s evolving, being absorbed into smarter more self-sustaining ecosystems.
Why Small Businesses Should Still Invest in a Great App
Despite a saturated app market, small businesses still have a powerful opportunity to stand out by creating a high-quality, purpose-driven app that strengthens customer loyalty, streamlines service, and builds brand credibility. If built well, your app can serve as a modern extension of what makes your business different—and become one of the key reasons your customer base remains loyal.
A thoughtfully designed app can simplify repeat purchases, offer personalized experiences, and keep your business relevant—especially in industries where convenience drives retention. The key is building an app that delivers real value, not just another download.
If you’re ready to turn your app idea into a strategic business tool, partner with a marketing firm that knows how to design, launch, and grow apps that actually convert. (We happen to know just how to do that.)
