At one point, an app called Twitterrific was one of the most popular iPhone apps for browsing Twitter. These days, the company behind that app, and the many apps that followed, is struggling. And AI may partially be to blame.
On Wednesday, the company known as the Iconfactory admitted it was at a crossroads and was putting up several of its apps for sale due to a lack of resources. While the announcement positioned the matter as a situation where the Iconfactory’s app catalog had simply grown to include too many apps to keep up with and not enough time to do so, the reality is that the business today has no choice but to focus on the apps that offer a better return on investment.
Side products can no longer be maintained, even if they have “loads of happy and loyal customers,” as the Iconfactory’s co-founder, Ged Maheux, says.
The company says that it will continue to work on apps like Tapestry, Linea Sketch, Wallaroo, and Tot, as well as its new project involving Retro Pixel Portraits, but is accepting “serious offers” for the other apps. These sales will include intellectual property and source code.
Of particular interest is that the company points to AI significantly affecting its business as the reason.
“ChatGPT and other AI services are basically killing @Iconfactory, and I’m not exaggerating or being hyperbolical,” Iconfactory developer Sean Heber said in a Mastodon post earlier this month.
The issue isn’t that people are using AI instead of mobile apps, but how vibe coding is affecting the need for app design firms like theirs. Besides building its own apps, the Iconfactory generated revenue by offering app design services, which include things like icon design (hence the name), app design, marketing asset creation, plus branding and consulting services.
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These services helped fuel the business that’s now being destroyed by 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,” Heber wrote.
Another issue for the longtime app makers at the Iconfactory was the shutdown of its most popular app, Twitterrific, which was killed by Elon Musk in 2023 when the company (now known as X) officially banned all third-party clients. The move put Twitterrific, Tweetbot, and other apps almost instantly out of business, leading the Iconfactory to plead with its users to decline their App Store refunds to help them stay afloat.
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