Two years ago you’d probably never heard of them; now, you’re lost without them.  Put simply, your smartphone – loaded with apps – is probably the most crucial development to hit the business landscape since the suit and tie.

In case you haven’t been paying attention, apps (an abbreviation of applications) are mini-programs which users can download and store on their smartphone – be it an iPhone, Blackberry, or Google’s Android phone.  Apps may be small, but they have the power to transform your mobile phone into the digital equivalent of a Swiss Army knife; a tool so versatile you’ll instantly wonder how you ever coped without it.

Of course there’s not a great deal of back story on the subject, but the saga began in June 2007 with the launch of Apple’s iPhone.  Initially, the Apple store offered just 500 apps (sold under the catchy strap line “solving life’s dilemmas one app at a time”).  Today there are over 100,000 – and the deluge of apps shows no sign of a plateau.  Quite the opposite, in fact…

Over 34 million iPhones have been purchased since 2007, and the number of applications that have been downloaded from the Apple Apps store has recently broken through the two billion mark.  The range of apps is staggering. 

One prevents you forgetting where you parked your car.  Another allows IT professionals the convenience to service websites on the move via their phone.  Sit or Squat is another convenience related app – and essential for finding fresh hygienic public lavatories.

There are apps that turn your iPhone into a Zippo lighter – ideal for holding above your head at a stadium gig without falling foul of the health and safety executive.  Another turns your iPhone into a light ¬sabre.  What, you don’t empathise with Luke Skywalker?  Then how about transforming it into a pint of beer instead?  No?  There really is no pleasing some people.  Okay, how about a simple if humourless app that manages your to-do list?  Satisfaction guaranteed.

Apps have the power to transform your mobile phone into a tool so versatile you’ll wonder how you ever coped without it.

The subjects covered are as diverse as the apps themselves – and service providers have had to be quick off the mark to get dedicated apps running everything from news to social ¬networking to music.  One successful example is the Spotify app for the iPhone, which gives its users access to a library of millions of tunes on the fly at the touch of an app icon.  For busy folks on the move the inclusion of GPS navigation tech is the smartphone’s greatest asset – traveller’s fresh off the plane in an unfamiliar city need never eat dinner in a dodgy restaurant again.

Some developers charge a few euros for the app, but many are free – the sites are so busy that the advertising alone generates revenue for service providers.  In fact, the apps economy is estimated to be worth a $343 million a year industry.  Well, I say a year, but they’ve barely been available for that long.

The market has accelerated at breakneck speed, but why have the public embraced this new technology so readily?  Will Harris, the marketing director at Nokia UK has the answer:  “The reason people have gone for them is the internet has made it easy on your mobile.  Everything you can do on a PC, you can pretty much do now on your mobile. It’s just the speed at which apps have been adopted that has caught the industry by surprise.”

The value of apps certainly has staggering potential.  AdMob, the mobile advertising firm, estimates the App Store alone will generate up to £1.5 billion of revenue this year, with the average iPhone user downloading 10 new apps every month, and spending 30 minutes a day using them.

Nils Lindstrom, a Swedish graphic designer based in London is your typical early adopter.  He bought an iPhone within three months of its release and was an instant convert to the app revolution.  “It’s like having your desktop computer in the palm of your hand,” he explains “The only problem is, apps are addictive – if somebody shows you some brilliant new app in the pub you end up downloading it yourself there and then.”

Out of a clear blue sky, apps are suddenly using up lots of people’s time.  Much of this attention is to the detriment of other technologies and types of media. A recent survey showed that 32% of smartphone users said they used portable gaming devices less because of their app-enabled phones.  Traditional forms of media are also suffering – 31% percent said they read newspapers less, while 24% percent are watching less television.  The smartphone may also sound the death knell for dedicated technology like GPS devices and MP3 players, which the report stated was being used 28% less by the participants.

This phenomenon has its own buzz word – known to the whiz kids of Silicon Valley as Disruptive Technology.  This refers to a breakthrough innovation that improves our lives in a way the market didn't anticipate.  These shock market developments don’t happen often, but there's every possibility that the smart phone will be every bit as transformative as the motor car proved, or ever the internet…

Apps have already exploded nitroglycerine-like to $434 million, but that figure is expected to go supernova by 2013 to $4.2 billion.

"Apps will be as big if not bigger than the internet," says Ilja Laurs, chief executive of GetJar, a leading independent application store.  "The full blossom will come in ten years and mobile apps will become as popular as websites are today with consumers.”

Nick Thompson journalist with Wired magazine – the barometer of digi-cool – says that apps are attracting whiz kids the same way Hollywood attracts people with good bone structure:  “It’s the way software is going.  They are the hot market. For young software developers, apps are where it’s at.”

Apps have already exploded nitroglycerine-like to $434 million, but that figure is expected to go supernova by 2013 to $4.2 billion.

However, GetJar boss, Laurs, offers cautious advice to developers and speculators casting a coveting eye on the gold rush.  The success (and indeed, the marketing campaign) of Apple's App Store is what, he believes, has driven so many to rush to develop for the market. 

“It is fashionable to do apps and every media outlet tells you apps are cool.  The ratio of those developers who will fail is about 90%; they will simply not make a return on their investment or make a good enough living at this.”

Could Laurs’ words be a smoke screen to put the competition off the heady scent of the huge profits on the horizon?  Quite possibly; but one thing is for certain, there will always be room for one more killer app.  The question is, who will be there to capitalise on its success?

Killer apps

EverNote, Evernote’s “Remember Everything” mantra sums up this clever little app quite nicely. It turns your phone into the ultimate digital archive by collecting snapshots, written notes and voice recording, then making them all available with a simple search – from your phone or your PC.

Pocket Informant, A calendar and to-do list merge in one of the most powerful scheduling and task management apps out there. True, not everyone needs the sort of heavy lifting and micromanagement this app allows, but if you do, there’s none quite like it. Syncing with Google Calendar seals the deal by allows appointments to be easily added and modified from a PC then displayed on the phone.

iTranslate, For French 101 dropouts and those who just need a little extra help abroad, iTranslate can serve as that digital crutch that lets you hobble through a foreign country. It uses Google’s translation software to translate between over a dozen different languages, from the frequently used ones like Spanish and German to more obscure tongues like Catalan and Latvian. As Google Translate vets can attest, it’s not perfect, but something is better than nothing, ja?

WorldMate Live, A useful app specifically for the road warriors, WorldMate Live delivers content and services to your BlackBerry device including itineraries, flights, hotel information, meetings, public transportation and car rental information. It allows you to export travel information including e-mail confirmation, corporate calendars and more. The app also provide current time and weather for one set location, a weather function offering five day forecast for any major city, and a currency converter for U.S. dollars, Euros or Japanese Yen.

Skype, This was probably one of the most eagerly anticipated applications for the iPhone, and in record time after its release it had hit over 1 million downloads.  While you can’t make calls over a wireless connection, you can make them over Wi-Fi which will allow you to make free Skype-to-Skype calls, call regular phone numbers and all of the other Skype features you’ve come to love.

Urbanspoon, Unsure of where you want to eat tonight?  Urbanspoon allows you to select things like style, location and cost, and get suggestions of where you might go.  Feeling totally random?  Just shake the application and see what you end up with!

Stock Viewer  This BlackBerry app lets you continuously retrieve stock quotes coming from NYSE and NASDAQ. It also gives you some headline news. The app is designed to work with BlackBerry 7xxx, 8xxx, 9xxx models.