If you listen to Apple, size matters when it comes to the number of mobile apps offered to iPhone users. It’s seen as a strategic strength compared with rivals such as Android, BlackBerry and Microsoft, which have smaller but growing portfolios.
But in the scheme of things does size really matter? Does it really offer a distinct competitive advantage? Here’s where I’m coming from: On my iPhone, there are about 50 apps – many of them downloaded on a whim because they’re free. Of these apps, you know how many I use on a regular basis? Less than five, and I suspect that most people fall into the same camp.
It means if every mobile platform offers the same small group of must-have apps (let’s aggressively assume 250 apps will account for more than 80% of total usage), then having more than 100,000 or even 50,000 apps doesn’t matter.
Yes, I accept the argument that having more apps offers the opportunity to serve the needs of many niche markets. And I recognize there’s marketing mojo in having a large app collection. But if push comes to shove, size doesn’t matter at all as long as consumers have their “basic” needs covered.
I’ve been thinking about this thesis for awhile but it was thrust into the spotlight after reading Randall Stross’ column in the New York Times yesterday on Nokia’s use of Windows Phone 7. One of the people quoted was Thomas R. Eisenmann, a professor at the Harvard Business School, who said:
“What is often missed is the diminishing returns after 1,000 applications. If a platform attracts the thousand-most-popular apps, then it provides almost anything a reasonable person would want to do with a smartphone.”
I couldn’t have said it better myself.

