Abbreviated form of "application", a type of software program that typically interacts with the end user, such as a calender program or a chat program. Applications differ from lower-level software programs such as device drivers which are mostly invisible to the user.
Since the late-2000s, the term "app" has been bastardized by Apple and other Apple wannabes to specifically mean a software program that you can buy at the "App Store" or variations thereof. In fact "applications" have been freely available online since the advent of the Internet and this concept is completely foreign to the majority of "app" buyers.
Jimmy: "check out this social app I bought from the app store yesterday!"
Jason: *smacks Jimmy's iPhone out of his hands*, "I do the same thing, for free, from this program called a web browser"
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