How Apple’s iOS 18 and macOS 15 Updates Shattered Startup Dreams

The tech world constantly evolves, and companies like Apple often lead the charge in pushing boundaries. With the release of iOS 18 and macOS 15, Apple introduced major changes that have revolutionized user experiences. However, while millions of users have embraced these updates with excitement, some startups are now facing major challenges, some to the point of closure.

This article will explore how these updates have impacted certain startups and what led to their downfall. From shifts in privacy regulations to software compatibility issues, these changes made by Apple have sent shockwaves through the startup ecosystem. Let’s take a closer look at how and why this happened.

The Privacy Wall That Shuts Out Advertising Startups

Apple has always prided itself on protecting user privacy, and with iOS 18, they have taken this a step further. Introducing more strict data privacy policies, especially the enhanced App Tracking Transparency (ATT), has made it nearly impossible for third-party apps to track user data without explicit consent.

This was devastating for advertising startups that rely on user data for targeted ads. These companies built their entire business models around being able to track users’ preferences, habits, and locations to offer personalized ads. iOS 18’s new policy now requires apps to ask for permission before tracking users, and most users are saying “no.”

One startup that couldn’t survive this shift was AdServe, which specialized in creating personalized ad experiences for mobile users. Their platform depended heavily on collecting user data to deliver customized ads. As more users opted out of tracking, the effectiveness of their platform plummeted, leading to a massive loss in revenue. AdServe eventually had to shut down its operations because it could no longer deliver the service it promised to clients.

Productivity Apps Struggle to Keep Up With macOS 15’s New Features.

macOS 15 brought an array of new features to improve productivity and performance. From enhanced multitasking to new built-in apps that handle project management, the update seemed to target the market several startups had been thriving in—productivity tools.

One company that felt the hit hard was TaskFlow, a startup that provided project management solutions to small businesses. TaskFlow offers an easy-to-use platform for task management, scheduling, and collaboration. However, with macOS 15’s new built-in features that offered very similar services—such as updated versions of Notes, Reminders, and the new Project mode—many users saw no reason to pay for TaskFlow’s service anymore. Apple essentially built a direct competitor right into their system, eliminating the need for third-party apps like TaskFlow.

The seamless integration of these new productivity tools into macOS 15 gave Apple an edge that TaskFlow couldn’t compete with. This forced TaskFlow to lay off most of its staff and close down after months of declining subscriptions.

Security Updates Cripple VPN Startups

Another set of startups hit hard by Apple’s updates focused on Virtual Private Networks (VPNs). iOS 18 and macOS 15 have introduced advanced security features that make it difficult for VPN startups to operate effectively.

In particular, the enhanced encryption protocols in these updates offer users built-in privacy protection, reducing the need for third-party VPN apps. On top of that, Apple introduced new restrictions on how VPNs operate within their ecosystem. For instance, VPN apps now need special permissions, and their functions are closely monitored to prevent data leaks, which Apple already handles in-house with its built-in privacy features.

One major casualty of these updates was SecureNet, a popular VPN service that allowed users to browse the internet anonymously. SecureNet had gained a significant user base, but with Apple’s privacy features becoming more advanced, users started cancelling their subscriptions, preferring the built-in solutions provided by iOS 18 and macOS 15.

Additionally, the added restrictions Apple placed on VPN apps meant that SecureNet faced issues with functionality, leading to user complaints—eventually, the combination of reduced demand and technical challenges led to SecureNet’s downfall.

Streaming Startups vs. Apple’s Ecosystem

Streaming apps have also felt the effects of Apple’s updates, especially those offering audio and video content. While many of these startups had previously thrived on iOS and macOS, iOS 18 and macOS 15’s deeper integration of Apple’s streaming services like Apple Music, Apple TV+, and Podcasts has made it harder for smaller competitors to gain traction.

Take TuneStream, for example. This startup offered a subscription-based service for curated music playlists, but it struggled to compete with Apple Music’s new offerings, which became even more seamlessly integrated into iOS 18. Apple Music’s recommendation system, now powered by advanced AI features in iOS 18, started delivering more personalized music selections, making third-party apps like TuneStream less appealing to users.

With Apple’s massive user base and the ability to bundle services with other offerings, TuneStream needed help to keep up. After several months of declining revenue, they lost subscribers rapidly and decided to shut down their service.

iOS 18’s Gaming Boost Leaves Indie Game Developers Behind

Indie game developers were another group that saw their prospects dim with the release of iOS 18. Apple has pushed gaming to the forefront of its new updates, introducing Game Mode, improved graphics rendering, and support for higher-quality visuals. While this is great news for large game studios and developers with the resources to take advantage of these features, it has left many indie developers in the dust.

Small gaming startups that relied on simple graphics or needed more money to optimize their games for the new technology could not compete. Gamers now expect high-quality experiences that smaller developers can only provide with access to expensive tools and resources.

One notable indie gaming startup, PixelPlay, struggled to adapt to these changes. Their games, which had a loyal but niche following, couldn’t compete with the larger studios that quickly adapted to iOS 18’s gaming enhancements. Despite efforts to upgrade their games, PixelPlay couldn’t keep up with user expectations and was eventually forced to cease operations.

The App Store’s New Revenue Model Hurts Small Developers

iOS 18 and macOS 15 also introduced the App Store’s revenue-sharing model changes. While Apple had previously taken a 30% cut from app sales and in-app purchases, they rolled out a new system with different revenue-sharing tiers based on the developer’s size.

While this might seem like a positive change at first glance, smaller startups found themselves squeezed out of the market. The new revenue model benefits larger companies that can afford to offer higher-priced apps and services. In contrast, smaller startups that relied on microtransactions or low-cost apps suddenly found themselves disadvantaged.

This was the case for AppBits, a startup that focused on developing affordable, niche apps for students and professionals. With higher fees for smaller transactions, AppBits saw their margins shrink, making it difficult to sustain their business. Users also became more reluctant to make purchases as the cost of microtransactions went up, leading to a significant loss in revenue for the startup. Ultimately, AppBits couldn’t maintain its operations and had to shut down.

Conclusion: A Shifting Landscape for Startups

The tech world is fast-paced and ever-changing, and Apple’s iOS 18 and macOS 15 updates are a clear example of how large tech companies can disrupt the landscape. While these updates have brought exciting new features and improved user experiences, they have also led to the downfall of several startups.

From privacy and security shifts to integrated features that eliminate the need for third-party solutions, startups like AdServe, TaskFlow, SecureNet, TuneStream, PixelPlay, and AppBits have struggled to survive in the face of Apple’s growing ecosystem. The lesson here is clear: while innovation brings progress, it also brings challenges, and not all businesses can weather the storm.