The Iconfactory is selling several apps and scaling back due to AI killing its design business.
The company behind once-popular Twitterrific admitted it’s strapped for resources. It’s keeping apps like Tapestry, Linea Sketch, Wallaroo, and Tot. Others are up for sale, including IP and source code.
AI is a major reason. Developer Sean Heber called out ChatGPT and AI services for “basically killing @Iconfactory” in a recent Mastodon post.
The problem: AI and vibe coding cut demand for traditional app design and branding services, which fueled The Iconfactory’s revenue. Heber said:
“ChatGPT and other AI services are basically killing @Iconfactory, and I’m not exaggerating or being hyperbolical.”
“I know nothing I say is going to get anyone to stop using ChatGPT and generating a new app icon in 5 minutes for the app that you also had ChatGPT write for you in a few hours, but I’m not sure what the rest of us are supposed to do about making enough money to, ya know, live.”
The company also suffered when Twitter (now X) banned third-party clients in 2023, killing Twitterrific and others. Heber laid it out clearly:
“First Twitter/Elon killed our main app revenue that kept the lights on around here, then generative AI exploded to land a final blow to design revenue.”
“I think perhaps because @Iconfactory design is quite good people have this impression that we’re sitting here on a pile of money or something and some huge powerhouse – nope. We’ve been barely making it since Elon/Twitter. There’s only 6 of us and there’s no war chest.”
The Iconfactory tried pivoting with Tapestry, a feed organizer for open social media and podcasts. It launched via Kickstarter but hasn’t hit critical mass.
The app serves niche platforms like Mastodon and Bluesky, far from mainstream appeal.
If AI keeps slashing app design demand, more small developers could face similar wipeouts.
The Iconfactory has not responded to further comment yet.