During this year's Worldwide Developer Conference (WWDC), Apple might announce a significant shift in its approach to app purchasing on iPhones. This change would allow users to download apps from third-party stores, which could have both favorable and unfavorable outcomes for business users.
A slight opening in the walled garden
Apple has been under intense regulatory scrutiny due to concerns that its App Store-only distribution model is anticompetitive. To address this, it has been reported that Apple is planning to allow app sideloading in iOS 17. This move is aimed at bringing Apple in line with regulations such as the European Union's Digital Markets Act. According to Bloomberg, By the following year, Apple aims to revamp its software to enable sideloading on iPhones, in order to meet new regulations from Europe. As a result, iPhone users will have the ability to install apps from sources other than the App Store for the first time.
Who gets rich?
Allowing sideloading could prove beneficial for certain enterprise users who may find it easier to distribute apps intended for internal use. Some businesses could benefit from being able to offer software directly to iPhone users. However, it remains to be seen to what extent users will want to switch from Apple's curated stores, which are generally viewed as safer.
Developers could also engage in more extensive beta testing of their software than what is currently available through TestFlight.
While much of the reporting on Apple's App Store commission focuses on the 30% surcharge paid by the most successful developers, smaller makers are unlikely to benefit significantly from the move as they typically pay a lower 15% fee. For most smaller developers, the cost and effort required to ensure security, payments processing, and customer returns through an independent store front may outweigh any potential additional revenue. This means that the most likely outcome of Apple's move will be a market of competing third-party stores struggling to make a profit, with Apple's own store offering customers a highly secure and curated experience.
It remains to be seen whether smaller app stores will have the capacity to invest the necessary time and resources to ensure a highly secure app ecosystem. If they are unable to do so and fail, they may suffer significant losses.
Big questions for IT
The prospect of opening up to third-party storefronts raises a critical question for Apple: to what extent will this impact the company's security models? This is a concern that will likely keep IT professionals up at night.
Several questions also arise:
Will there be a system to maintain security on managed devices?
It is currently unclear whether the ability to download apps from independent stores will be an opt-in feature or not.
It is unclear at this time whether Apple will provide a mechanism for managing fleets of devices to prevent the use of external stores.
Living in the sandbox?
Enterprises may expect Apple to implement some sort of sandboxing for externally acquired apps. If such apps are not sandboxed, these enterprises will likely want the ability to disable third-party app installs on managed devices to enhance security for critical enterprise infrastructure. It remains to be seen how Apple will handle this transition. While regulators may believe that every iPhone user wants the option to download the latest ad-tracking solution from third-party stores, not all Apple users share this sentiment.