The Utility App Boom Isn't Sustainable
AI-driven app explosion is driving down prices and transforming the market.
1AI-Powered App Surge
Since early 2025, there has been a significant increase in apps developed with the help of AI agents. Experienced developers are updating existing apps faster, while new developers are launching their first apps. Supply on the App Store has risen dramatically, while demand remains flat. This imbalance is driving down app prices and transforming the market.
2Rise of Utility Apps
Utility apps, especially those offering user-friendly interfaces for command-line tools, have become popular among new developers. For example, apps that allow users to convert video or audio files without using Terminal provide great convenience. AI agents have made developing such simple, narrow-scope apps even easier.
3Market Imbalance
According to reports by The New York Times, app supply has far outstripped demand. This situation is driving down prices and causing the market to shrink. Sensor Tower data shows that download numbers on the App Store have grown only 2-3% over the past two years. However, utility app downloads are expected to decline in the coming months.
4User-Generated Apps
Thanks to AI agents, power users can now easily create their own apps. Simple functions like video editing or downloading from YouTube have become much more accessible. This trend is likely to further shrink the utility app market.
5Price Pressure
The increase in app supply is driving down prices and reducing revenues for developers. This is particularly challenging for utility app developers. The ability of users to create their own apps adds to this pressure. While the idea that everyone will build their own software is exaggerated, it may hold true for utility apps.
6Importance of Creative Solutions
Alongside simple apps, those offering creative solutions to complex problems remain valuable. For example, apps that combine different tools or offer original solutions can endure in the market. These apps possess qualities that AI agents cannot easily replicate.
7Future Predictions
The current frothy state of the utility app market is clearly unsustainable. In the coming months, the market is expected to shrink and stabilize. However, some users will still prefer to buy apps rather than build them. Therefore, utility apps will not disappear entirely.
8Market Transformation
AI-powered app development is rapidly transforming the market. Utility apps are at the forefront of this transformation. However, like other App Store trends, this wave is expected to recede. What's different this time is that the change is likely to happen much faster.
Original article: MacStories — Yararlı Uygulama Dalgası Sürdürülebilir Değil