Iconfactory, the legendary design-and-dev shop, is fighting an uncertain future. That explains why they’ve made the extremely unfortunate decision to discontinue and sell many of their widely popular apps. This move comes after the company’s most popular application, Twitterific, was banned by Twitter’s owner Elon Musk in 2023, significantly impacting the firm’s revenue stream. With a mere six employees and no financial reserves, Iconfactory struggles to maintain its products in an increasingly competitive landscape dominated by tech giants and generative AI technologies.
Ged Maheux, co-founder of Iconfactory voiced his worry about the long term viability of their side products. In turn, the company can’t afford to put enough resources into developing its future products. One of those offerings is Tapestry, an app that allows users to combine public open feeds with customizable add-ons, or Connectors. He added that this is one of the toughest markets to operate in. Without constant reinvention and encouragement, it’s hard to stay in business.
The blow dealt by the Twitterific ban struck deep. Once one of the most popular iPhone apps for browsing Twitter, its removal from the market took a significant toll on Iconfactory’s financial stability. Recognizing the unexpected impact of losing this critical revenue source, Maheux explained how this loss in a single stroke forced her company into an existential crisis.
It’s no surprise that Sean Heber, a developer at Iconfactory, vented his concerns on the potential impacts of AI on their business. He pointed out that the rise of generative AI tools has further diminished their ability to compete in the app development space.
“First Twitter/Elon killed our main app revenue that kept the lights on around here, then generative AI exploded to land a final blow to design revenue,” – Sean Heber
Heber’s sentiments struck a chord with nearly all of those in the tech community who are having their own similar struggles. AI can automatically generate stuff, like app icons, or even fully-fledged applications. This has opened up opportunities for fun, quirky smaller publishers like Iconfactory.
“ChatGPT and other AI services are basically killing @Iconfactory, and I’m not exaggerating or being hyperbolical,” – Sean Heber
With little room for maneuvering, Iconfactory’s leadership is left contemplating how to navigate this shifting environment. Losing its largest source of income instantly creates an overwhelming financial burden for the company. Couple this with the fact that fast-moving, emerging AI technology has intensified competition and threatened the sustainability of their existing business model.
Iconfactory is now pushing ahead with plans to sell off its applications. This verdict is representative of a larger pattern within the tech industry, as small firms are under existential duress at the hand of corporate behemoths and in developing technologies. Iconfactory’s decision to divest from some of its products is due to their own financial woes. Beyond this, this advance underscores an important change in paradigm regarding how we view application development in a time more and more influenced by automation and AI.
“I know nothing I say is going to get anyone to stop using ChatGPT and generating a new app icon in 5 minutes for the app that you also had ChatGPT write for you in a few hours, but I’m not sure what the rest of us are supposed to do about making enough money to, ya know, live,” – Sean Heber
As Iconfactory moves forward with plans to sell its applications, it highlights a broader trend within the tech industry where smaller companies face existential threats from both corporate giants and emerging technologies. The decision to divest from certain products reflects not only the financial struggles of Iconfactory but also a shift in how application development is perceived in an era increasingly influenced by automation and artificial intelligence.