Among All the iPhone 5 Rumors, Possible App Rentals Are Not Getting the Hype They Deserve

By: Hillel Fuld

In just a few hours, Tim Cook, Steve Jobs’ replacement, will take the stage at the Let’s Talk iPhone event. The web has been like a fanboy fest for the past few weeks with constant rumors about what we can expect to see at the event. The rumors have actually gotten pretty wild lately with BGR leading the pack.

Among all the iPhone 5 rumors, and there are a whole lot of them, a little story about what else we can expect to see seems to have gotten neglected. A well known iPhone hacker, Sonny Dickson, recently discovered some mysterious code in the latest beta version of iTunes. To make a long story short, the new code points to the fact that we can expect to see app rentals come to the App Store in the near future (probably today).

That is huge!

If Apple includes the ability to temporarily rent an app before purchasing it, such a move would have long lasting effects on multiple industries, mobile advertising being one of them.

For example, in 2011, over 80% of app downloads were free. Developers who charge for an app can expect to see significantly lower download numbers, especially on Android. If, however, a user can rent the app and see if it appeals to them, the hesitance to pay a premium price might be lessened. If that happens, developers can expect more download revenue, which combined with mobile advertising, can bring about a true mobile revolution, as far as developer revenue is concerned.

In addition, there are many possibilities for exclusive apps that users can download for a one time use if they have the ability to rent the app. In-flight apps, utilities that users would otherwise not download due to a steep price, or many other possible scenarios.

All in all, if logic serves me right, the ability to rent apps from the App Store should also put a serious dent in the whole app pirating community. If there is one recurring argument I have heard from iPhone users who I have tried to convince that pirating apps and stealing from developers is a no-no, it is “I need to see if I like the app before I pay for it. I will pirate it, test it, and if I like it, I will pay for it.” Yea, ok, like that last stage ever happens.

Now, users will be able to test the waters and see if they like the app before paying for it. Of course, this will not put an end to app piracy and there will always be people who want free over paid, but we should see a decrease in numbers in no time.

Of course, this whole thing is still a rumor and no one knows for sure whether this will become a reality in today’s keynote. The only thing I can add is that such an addition to the Apple ecosystem would be a super smart decision on the part of Apple and will surely give Apple yet another advantage over its main competitors.

UPDATE: A developer reached out to me on Twitter explaining why he thinks app rentals are not going to happen. See one of  his tweets. here.

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