Steve Jobs

Levinson was among those pushing to allow iPhone apps. “I called him a half dozen times to lobby for the potential of the apps,” he recalled. If Apple didn’t allow them, indeed encourage them, another smartphone maker would, giving itself a competitive advantage. Apple’s marketing chief Phil Schiller agreed. “I couldn’t imagine that we would create something as powerful as the iPhone and not empower developers to make lots of apps,” he recalled. “I knew customers would love them.” From the outside, the venture capitalist John Doerr argued that permitting apps would spawn a profusion of new entrepreneurs who would create new services.
    Jobs at first quashed the discussion, partly because he felt his team did not have the bandwidth to figure out all of the complexities that would be involved in policing third-party app developers. He wanted focus. “So he didn’t want to talk about it,” said Schiller. But as soon as the iPhone was launched, he was willing to hear the debate. “Every time the conversation happened, Steve seemed a little more open,” said Levinson. There were freewheeling discussions at four board meetings.
    Jobs soon figured out that there was a way to have the best of both worlds. He would permit outsiders to write apps, but they would have to meet strict standards, be tested and approved by Apple, and be sold only through the iTunes Store. It was a way to reap the advantage of empowering thousands of software developers while retaining enough control to protect the integrity of the iPhone and the simplicity of the customer experience. “It was an absolutely magical solution that hitthe sweet spot,” said Levinson. “It gave us the benefits of openness while retaining end-to-end control.”
    The App Store for the iPhone opened on iTunes in July 2008; the billionth download came nine months later. By the time the iPad went on sale in April 2010, there were 185,000 available iPhone apps. Most could also be used on the iPad, although they didn’t take advantage of the bigger screen size. But in less than five months, developers had written twenty-five thousand new apps that were specifically configured for the iPad. By July 2011 there were 500,000 apps for both devices, and there had been more than fifteen billion downloads of them.
    The App Store created a new industry overnight. In dorm rooms and garages and at major media companies, entrepreneurs invented new apps. John Doerr’s venture capital firm created an iFund of $200 million to offer equity financing for the best ideas. Magazines and newspapers that had been giving away their content for free saw one last chance to put the genie of that dubious business model back into the bottle. Innovative publishers created new magazines, books, and learning materials just for the iPad. For example, the high-end publishing house Callaway, which had produced books ranging from Madonna’s
Sex
to
Miss Spider’s Tea Party
, decided to “burn the boats” and give up print altogether to focus on publishing books as interactive apps. By June 2011 Apple had paid out $2.5 billion to app developers.
    The iPad and other app-based digital devices heralded a fundamental shift in the digital world. Back in the 1980s, going online usually meant dialing into a service like AOL, CompuServe, or Prodigy that charged fees for access to a carefully curated walled garden filled with content plus some exit gates that allowed braver users access to the Internet at large. The second phase, beginning in the early 1990s, was the advent of browsers that allowed everyone to freely surf the Internet using the hypertext transfer protocols of the World Wide Web, which linked billions of sites. Search engines arose so that people could easily find the websites they wanted. The release of the iPad portended a new model. Apps resembled the walled gardens of old. The creators could charge fees and offer more functions to the users who downloaded them. But the rise of apps also meant that the openness andlinked nature of the web were sacrificed. Apps were not as easily linked or searchable. Because the iPad allowed the use of both apps and web browsing, it was not at war with the web model. But it did offer an alternative, for both the consumers and the creators of content.
    Publishing and Journalism
    With the iPod, Jobs had transformed the music business. With the iPad and its App Store, he began to transform all media, from publishing to journalism to