The App Store is evolving at a breakneck pace not seen since its earliest days. We saw the first glimmers of what was to come early in 2025, but it wasn’t until late last year that the tsunami of apps developed with the help of AI agents really took hold.
Since then, veteran developers are releasing new apps and updating existing ones faster than ever, and new developers are releasing their first apps in droves. Today, supply is dramatically up, demand is flat, and quality is seemingly simultaneously up and down, depending on where you look.
How these forces play out long-term is anyone’s guess, but it’s worth examining because, just as Federico’s link to Bryan Irace’s post about agentic coding tools foreshadowed the rise of tools like Codex and Claude Code, today’s trends are sparks that have the potential to become tomorrow’s App Store wildfires or simply fizzle out.
Utility apps are on the front lines of this change. The TechCrunch story I linked in April picked up on this trend:
Another interesting tidbit from Appfigures is that the Utilities app category moved up the top five chart.
If anything, the trend has accelerated in the months since.
It’s not surprising at all that utility apps have taken off. They’ve been a staple of new developers since long before agents came along. That’s because many are UI wrappers around command line tools. That isn’t a knock against the developers of those apps; most users don’t want to open Terminal to convert a video or audio file to another format using ffmpeg, for example. By building a great UI around command line tools, developers have made them far easier to use.
However, the relative simplicity and narrow scope of many utility apps have made them a natural fit for AI agents, too. That’s why the App Store (and my inbox) is deluged with Mac menu bar and single-screen iPhone and iPad utility apps.
On the one hand, the abundance of utilities has been great for users. More choice means you’re more likely to find the app that perfectly fits your needs.
On the other hand, though, I don’t think what’s happening in the category is sustainable and expect to see it dramatically shift again in the coming months. As we’ve seen from reporting by The New York Times, app supply is outstripping demand by orders of magnitude, which will drive down prices. That alone is likely to cause the utility app market to shrink. But there’s more to it than that.
Remember, the demand shifts that The New York Times reported, based on Sensor Tower numbers, are for the entire App Store, where download numbers have grown 2-3% this year and last. I expect utility downloads to actually shrink in the coming months – again, because of agents. Utilities, especially simple ones, are exactly the sorts of apps that are becoming trivially easy for power users – the very users these utilities are made for – to create themselves. From frontier labs‘ model improvements to a growing number of app-building tools from those same labs and third parties, it’s never been easier to build a web or native app yourself.
And although I agree with people, like Nilay Patel, who say the notion that everyone will build their own software is overblown, the utility market is different. Your average person is not downloading apps to adjust the frame rate and file format of a video or downloading YouTube videos to watch later. But those are exactly the sort of things that people who are using agents are doing with them, whether they’re having an agent do those things directly via a command line tool in an app like Codex or Claude Code or building an app to do the same thing. That’s going to put even more pressure on the category.
That said, I think there will always be a cohort of users who would rather pay for an app than build it themselves, so I’m not predicting the demise of utilities in general – just the end of today’s frothy market. I also think there remains a place for simple utilities that solve hard problems with clever solutions. Not every utility is a UI wrapper for a terminal command. Plenty of apps feature original solutions or thoughtful and unconventional remixes of disparate tools.
Utilities aren’t going away, but just like other App Store deluges, the trend will recede. It’s just that this time, it’s likely to flip faster than usual.
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