Big data learning. They're (probably) inferring how you do stuff based also on how other people do. In fact, there's no way to recommend apps not already installed on your phone without consulting a server.
I think I misunderstood their app's description. I thought it was about recommending things to launch out of the things you have installed.
EDIT: And I'd pay for a launcher that learns from my interactions with it off-line, and recommends me apps based on context such as location, time of day, previously launched apps, etc. Such a thing does not need "big data learning". It's an undergrad-level machine learning exercise.
