Apple’s New Update: How It Could Impact Social App Businesses in Oman
By Kevin Roose
This year, Apple unveiled iOS 18, its latest mobile operating system, drawing significant attention for its new artificial intelligence features. However, a less prominent change concerning an obscure element that allows users to share their contact lists may prove even more impactful.
This feature, known as "contact sync," has been crucial to the growth of numerous social and messaging applications over the past two decades. It enabled platforms like Instagram, WhatsApp, and Snapchat to tap into existing iPhone users’ networks, facilitating rapid growth by suggesting connections and propelling these apps to the top of the App Store rankings.
Some developers are now expressing concerns that launching new apps will become increasingly challenging. Nikita Bier, a startup founder with experience in creating viral applications for younger audiences, referred to the changes in iOS 18 as “the end of the world,” suggesting they could lead to new friend-based social apps being deemed “dead on arrival.” While this may sound dramatic, discussions with Bier and other developers—along with insights from Apple—revealed a complex situation. Apple believes these changes prioritize user privacy, though some competitors view them as an underhanded strategy to disadvantage rivals.
On one side, I empathize with the difficulties developers face while trying to launch new social applications today. The alterations in iOS 18 will certainly complicate the success of emerging apps. In a landscape where smaller applications find it increasingly tough to thrive, established platforms like Facebook and Instagram stand to gain, as they already benefit from established user networks.
Conversely, I support Apple’s assertion that giving users more control over their contact sharing enhances privacy. Many apps that request complete access to user contacts can feel intrusive, and personally, I intend to utilize this feature to keep sensitive contacts—such as confidential sources—secure across various social and messaging applications. This scenario highlights the significant influence that dominant players like Apple have, where even minor updates to their products can cause substantial ramifications throughout the tech industry. It underscores the balance between fostering competition and ensuring privacy that many tech companies and regulators are currently navigating.
Previously, iOS applications could prompt users for access to their contacts via a "data access prompt." If granted permission, developers received a complete list of contacts from the user’s address book, including phone numbers and email addresses. This data could then help apps construct a user’s social graph or recommend other accounts to follow.
In iOS 18, users who agree to provide contact access now encounter a second prompt, allowing them to select specific contacts to share, rather than handing over their entire address book at once.
Apple’s rationale for this change is straightforward: users should not be compelled to choose between an all-or-nothing access option. Many users maintain large contact lists on their devices, often containing individuals they prefer not to share publicly. Just as iOS has allowed selective access to photos for years, it argues that the same principle should apply to contact lists. Apple asserts that developers may actually find increased contact sharing, as users who previously declined to share any contacts might be more inclined to select specific ones.
However, developers contest this perspective. Bier noted that data from startups he advises indicated a significant drop in contact sharing post-iOS 18 implementation and pointed out that, in some cases, the number of users sharing ten or fewer contacts increased by as much as 25%. Other developers reported similar experiences but preferred to remain anonymous to avoid potential backlash from Apple.
Moreover, critics highlight the fact that iOS 18’s modifications do not extend to Apple’s own services. For instance, iMessage does not require permission to access users’ contacts, unlike third-party platforms such as WhatsApp, Signal, and WeChat. This has led some to label the situation as anticompetitive, reflecting a form of self-preferencing that has raised concerns among antitrust regulators.
iPhone users still have the option to upload their entire address books, and Android continues to require an all-or-nothing consent. Yet, the added step in iOS 18 is likely to result in fewer contacts being shared.
As a result, Bier speculated that friend-based social apps might be overshadowed by alternatives like TikTok, which prioritizes content based on user preferences rather than social connections, or AI-based companionship applications that do not necessitate human interaction.
“You’d have to be pretty crazy already to pursue a friend-based social app,” Bier remarked. “Now, it’s all but impossible.”
Special Analysis by Omanet | Navigate Oman’s Market
The changes in iOS 18 regarding contact sharing present a dual-edged sword for businesses in Oman; while prioritizing user privacy enhances consumer trust, it also creates barriers for app developers, particularly those aiming to launch social apps. Entrepreneurs and investors should pivot towards innovative platforms that sidestep traditional contact-based models, considering emerging trends like content-driven apps or AI technology, as these might offer more room for growth in an increasingly restrictive environment.
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