What does it do:
App thinning is the optimization of store and operating system to the capabilities of the user’s particular device. This helps faster downloading of apps and apps require less storage space than normal.
There are three components for app thinning:
slicing, bitcode, and on-demand resources.
Slicing is the process of creating and delivering variants of the app bundle for the different devices. Normally developers upload full versions of your app to iTunes Connect. The store creates and delivers different variants for different devices.
Including bitcode will allow Apple to re-optimize your app binary in the future without the need to submit a new version of your app to the App Store.
In this the developer can tag various resources like images and audio, and this is stored in Apple;s server and this server manages downloads for you. This will improve first time download and launch experience by postponing some resources for later download.
Suppose you have an iPhone 5S and you try to download an app. The iTunes will give the variant for your particular device. That means you will not get various interface elements like background image/icons for iPhone 6 / iPad which is not required for your device.
Another example is if you want to download a game, which has various levels and different graphic images for those levels, iTunes will download the images / other resources like audio only for the first few levels. And if you enter remaining levels of the game, the app will automatically download the remaining items.
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