To understand why password manager apps like 1Password might survive the launch of Apple’s new Passwords app later this year, we need to take a look back at history.
You’d think Dropbox would have been Sherlocked after turning down Steve Jobs, who famously promised to destroy them out of frustration for not selling to Apple.
Countless publications, both well-established and little-known, predicted Dropbox’s demise. Yet here we are, and Dropbox is still thriving.
What began as a startup by two young men has grown into a billion-dollar market cap behemoth. How did they pull that off?
Dropbox survived by doubling down on what they do best and constantly innovating beyond just cloud storage. When iCloud came onto the scene, Dropbox didn’t just sit still.
They expanded their features, focusing on collaboration tools and integrations with other services and maintaining a reputation for reliability and ease of use.
Dropbox also carved out a niche by catering to both individual users and businesses, offering features like shared folders, real-time collaboration, and file versioning.
These are areas where iCloud lagged behind for a long time. Plus, Dropbox’s cross-platform compatibility gave it a significant edge over iCloud, which was more tightly integrated with Apple’s ecosystem.
One key factor was building and maintaining a loyal user base. Dropbox ensured its service was reliable and user-friendly and capitalized on word-of-mouth marketing.
So, what does this mean for apps like 1Password and LastPass, which are facing potential extinction with the upcoming iOS 18?
Well, they can stay relevant and in business only if they follow Dropbox’s survival journey.
Just like Dropbox, password managers can stay competitive by focusing on features that Apple’s Passwords app might lack.
This could include advanced security features, comprehensive password auditing, and more robust multi-platform support.
One of Dropbox’s strengths was its availability across multiple platforms. Similarly, password managers should ensure seamless integration across different operating systems and devices, making them indispensable for users who don’t exclusively use Apple products.
Building a strong, loyal community through excellent customer service and user engagement can also make a significant difference. When users feel valued and well-supported, they are less likely to switch to a new app, even one from Apple.
Tailoring services to business and enterprise users can provide a significant revenue stream that Apple’s more generalist approach might not cater to as effectively. Features like team password management, audit logs, and compliance tools can be important differentiators.
Another key aspect is ensuring an exceptional user experience. While Apple’s integration will undoubtedly be seamless, third-party apps can offer more customizable and user-centric experiences.
They can focus on intuitive interfaces, personalized features, and user feedback to continuously refine their offerings.
And don’t forget Apple makes a lot of money with the 30% fee it collects from app developers. If developers lose the incentive to create apps for the Apple ecosystem, they might shift to other platforms, resulting in lost revenue for Apple—something the company surely wants to avoid.
Additionally, Apple generates significant revenue from advertising in the App Store, a stream that could dry up if developers move elsewhere.
Therefore, Apple must find the right balance between developing popular apps to satisfy its users and ensuring that developers continue to thrive and stay motivated to create new apps for its ecosystem.
Also: 4 exciting new Apple Photos features coming to iOS 18 that will make you finally ditch google photos
In a nutshell, the key for apps like 1Password and LastPass to survive—and even thrive—against Apple’s new Passwords app lies in their ability to specialize, innovate, and build a loyal user base.
Just like Dropbox, they need to find and exploit the gaps that Apple’s solution doesn’t cover, continuously push the envelope with new features, and maintain a strong focus on cross-platform support and user trust.
The tech landscape is always evolving, and while being sherlocked is a significant challenge, it’s not necessarily a death sentence.
With the right strategies and a relentless focus on what they do best, I believe these apps can carve out their own space and continue to serve their dedicated user base effectively.
