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Blog Summary:
This blog is an in-depth analysis of a step-by-step breakdown of mobile app development costs. Decision-makers will be able to find all the necessary information regarding the essential factors that help in determining the cost along with some helpful strategies to reduce those development costs.
Table of Content
Mobile app development is a revenue-generating niche that reached USD 475.90 billion in 2022 and continues to attract billions of dollars. However, deciding the cost of mobile app development and making it successful is a process that involves making choices at every step.
If you have an idea and budget estimate to discuss with the developers, you should have a detailed and clear picture of all the aspects you need to consider. This blog will give a step-by-step breakdown of the mobile app development costs to all the decision-makers.
Let’s move on to the following sections, where we help you understand the essential factors determining these costs. We will also discuss some hidden costs that affect the development along with the best ways to reduce them.
It’s crucial to research your target audience to help you prioritize which platform you need to choose. For cost-effective options, choose React Native or Flutter, as they enable you to use a single codebase. Besides, it’s always better to keep the design of the user interface simple to save on costs generated by adding complex features.
Building an app makes it crucial for you to prioritize app features for app development cost breakdown. Prioritizing some of the app functions will give you clarity on which of these are impactful enough to start driving your business revenue quickly. The rest of the features you can save for later when you receive user feedback.
An MVP provides initial feedback from the users by launching the simplest version with only the basic features. The feedback helps organizations plan a budget to build the features that would solve their pain points and provide users maximum benefits while using your mobile app. When your focus is only on developing the most important features, you save a lot of development money.
Lean development helps app development teams to focus more on eliminating excess code and features, minimizing labor costs, and reducing complexity. By emphasizing continuous improvement, it helps teams rectify issues early in development and reduces the cost of addressing them later.
Strategically allocate resources by prioritizing essential features, reducing unnecessary complexities, and optimizing development processes to streamline costs without compromising quality.
Weigh the benefits of outsourcing against in-house development. Outsourcing offers cost-effective access to skilled talent, saving on salaries, infrastructure, and operational expenses.
Without any compromise on quality, outsourcing is a cost-effective solution for app development. According to reports, outsourcing can help save between 30% – 70% development costs as it eliminates the finances spent on recruiting and training.
Open-source software can significantly reduce development costs as it is freely available. It helps developers to eliminate the need to purchase expensive software licenses. Developers have access to a wide range of pre-built tools and high-quality code libraries, resulting in accelerated project timelines and lowered labor costs.
Leverage open-source libraries and frameworks to avoid building functionalities from scratch, significantly reducing development time and associated costs.
Choose cost-effective third-party tools with scalable licensing options. Prioritize customization only where essential to minimize development expenses while meeting specific requirements.
With apt guidance to lead generation, you can get higher conversion rates with increased purchase intent.
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Generally, the starting cost for simple mobile apps can be as low as $5,000 and can go up to a staggering high of even more than $300,000. On the other hand, complex applications like Netflix need complicated features that cost the organization up to $250,000. But the best way to estimate the cost of a mobile app development lifecycle is to get an idea from the developers.
To calculate the expenditure, a simple formula is:-
Let’s discuss the most essential factors affecting the cost of the mobile app development process.
Mobile app development is a competitive industry with numerous industries like food delivery apps, social media apps, transportation apps, etc. When working on dedicated platforms, you can hire iOS developers or Android developers separately.
Depending on the target audience, you can choose custom app development for either one of them or simultaneously develop apps for each platform. If you’re looking for low-cost mobile app development, you can start by developing for one platform and then shift to others.
A cross-platform app would cost less because it uses a single codebase for developing simultaneous applications. Currently, React Native and Flutter rule the cross-platform mobile app development industry.
Here’s an overview of different apps with average costs and hours to develop:
| Application Type | Avg Development Cost | Development Hours |
| Web App | $5,000 – higher limit requirement basis | 800 – 1200+ |
| Native Mobile App (iOS, Android) | $10,000 – $100,000 | 800-1000+ |
| Hybrid Mobile App | $10,000 – $150,000 | 800-1200+ |
| E-commerce App | $4,000 – $50,000 | 1000 – 1200 |
| Social Media App | $25,000 – higher limit based on requirement | 1000 – 1400+ |
| Learning App | $20,000 – based on the features added | 1000 – 1200+ |
| Dating App | $20,000 – based on the features added | 1200 – 1400+ |
| Gaming App | $10,000 – $100,000 | 1200 – 1800+ |
| Taxi App | $12,000 – $50,000 | 1400 – 1600+ |
| Video Streaming App | $15,000 – based on the features added | 1200 – 1600+ |
| Restaurant App | Based on requirement | 1200 -1600+ |
| Shopify App | $2,500 – $25,000 | 500 – 800 |
| WooCommerce App | $2,500 – $25,000 | 500 – 800 |
Native app platforms are the perfect choice for iOS-specific and Android-specific budget-friendly app development. They enhance the performance of your mobile app by increasing the responsiveness to device features without compromising quality.
The Hybrid apps are developed to work on both iOS and Android platforms. Writing in web-based language and then rendering natively. It follows a “write once, run anywhere” philosophy.
| App Category/ Platform | Native | Hybrid | Cross |
| Simple | Cost – $10,000 – $40,000
Development time – 200 – 400 hours Features –
|
Cost – $6,000 – $24,000
Development time – 150 – 300 hours Features –
|
Cost – $6,000 – $24,000
Development time – 150 – 300 hours Features –
|
| Medium | Cost –$40,000 – $100,000
Development time – 800 – 1200 hours Features –
|
Cost – $40,000 – $100,000
Development time – 500 – 1000 hours Features –
|
Cost – $40,000 – $100,000
Development time – 500 – 1000 hours Features –
|
| Complex | Cost – $50,000 – $300,000
Development time – 1000 – 1500 + hours Features –
|
Cost – $25,000 – $1.5million
Development time – 500 – 1500 + hours Features –
|
Cost – $30,000 – $300,000
Development time – 600 – 2000 + hours Features –
|
Some features, like simple login, dashboard, etc., qualify for a simple app. However, features like geolocation tagging, in-app calls, etc., are considered to increase an app’s complexity, which makes the app stand out. Hence, implementing them is a complicated task.
Adding complex features like API integration, UI/UX design, front-end development, and backend development and selecting a database for mobile app storage and processes – all these affect hourly wage rates according to the region and type of platform.
An impeccable design and user interface of your mobile App directly impact your sales. For example, gaming apps build their brands through an interactive experience, making them the highest revenue maker in the app category, with USD 89.25 billion in 2023.
The complexity of mobile app design, choosing between basic and custom UI/UX elements, influences costs. Custom designs tailored to user experience generally incur higher development expenses.
UI/UX considerations play a pivotal role in impacting user satisfaction and engagement. User-centric design should be the primary focus, with intuitive navigation besides a responsive layout to maintain consistency across platforms.
Prioritizing the App’s functionality at an early stage is a wise step toward sticking to the app development budget. It’s smart to prioritize your App’s capabilities to begin creating commercial value as soon as possible. MVP (Minimum Viable Product) is an excellent way to start, then move up to commercialize it and rectify it according to the user feedback.
The intricacy and number of core functionalities you include in the architecture of your mobile app directly impact development costs. Complex features or extensive functionalities contribute to a higher budget requirement.
Integration of third-party services or APIs can affect costs. Customizing and incorporating external features may require additional development efforts, impacting overall expenses.
Depending on the area where you launch your firm, the hourly costs for a design and development team range from $150 to $250 per specialist. For example, the cost of employing developers in the United States is 2x-3x that of hiring developers in Asia. The USA offers both price and quality.
Building an in-house team is a good choice if eyeing a complex project and high mobile app security. When dealing with some sensitive information, the in-house team is what you want.
If your project necessitates more workers and professionals working on it, the availability of high-quality software, and experience promoting apps, consider outsourcing app development.
The common reason accounts for factors like standard of living, avg. Wages, etc. In regions like North America, the average wages are higher than in the rest of the world, contributing to higher prices.
| Region | Rate Per Hour | Development Hours |
|---|---|---|
| North America & Canada | $100 – $250 | 1200 |
| Australia | $100 – $130 | 1200 |
| European region | ||
| Western European region(U.K, Germany, France ) | $80 – $180 | 1200 |
| Eastern European region(Ukraine, Poland, Romania) | $30 – $80 | 1200 |
| Asian region | ||
| India and nearby region | $20 – $50 | 1200 |
| Southeast Asia(Indonesia, Vietnam, Philippines) | $20 – $35 | 1200 |
Your optimum app development project marketing cost should be two to three times your initial development cost. For example, if the cost of developing your chat App is $100,000, you should estimate between $200,000 and $300,000 for marketing expenses each year.
Maintenance might be scheduled, performed on-demand, or both. The best budget for app maintenance is twice the cost of development. The following will account for the majority of maintenance costs:
The frequency and scope of app updates significantly impact costs. Regular updates for mobile app security, features, and compatibility contribute to ongoing development expenses.
Use advanced B2B targeting mobile applications to shoot your ROI and lead the market.
Hire Mobile App Developers
Facebook’s early development cost was reportedly approximately $500,000. Due to its extensive development efforts, apps like Facebook have a development time of around months to a year.
Apps like Uber cost around $30,000 to $100,000 with complex features such as in-app calling and geolocation tagging. The development time comes around a few months.
WhatsApp’s development cost was approximately $250,000. Messaging applications like WhatsApp take nearly a year to build—additional time for updates like the recently launched in-app payment option.
Instagram’s development cost was reportedly between $500,000 and $1 million. Building an application like Instagram takes between 6 and 12 months.
Snapchat’s development cost was reportedly $4 million. If you are eyeing a sophisticated app like Snapchat, assume a good nine months to 18 months for development time.
TikTok’s development cost was reportedly around $1 million. A short video-sharing application like TikTok takes 6 to 12 months to develop.
There are some things to remember when choosing a mobile app development company for your project.
If you already have a vision, knowledge about your application’s needs will always keep you updated with the latest trends in the mobile app development industry. For example, integrating AI chatbots can give you a competitive edge over others.
Or else, find an experienced mobile app developer who will help you clear your mind about the allotted development funding, development schedule, and platforms on which it will run.
Working with expert app development companies, who have established themselves in the field for years, can prove highly profitable for your app.
If you work with such a firm, you won’t need to search elsewhere for further assistance or services. They can give you all the resources you need at every stage of developing an application, including design, development, and app testing.
Asking the correct questions at the correct time is your next need. One-to-one interviews with the developer with crucial information will help you give clarity and make them understand that you both are on the same page. Ideas are exchanged, and knowing their previous experience will make brainstorming with them easier.
You have a unique application in your mind. Research the applications the firm has already made. Judge them on a non-technical note, including the ease of use, technicalities, user-friendliness, and time to upload on the web and mobile.
Evidence proves better than words. Our mobile app development services are the talk of the town, with customers profiting from the applications and satisfied with the work. Our mobile app developers understand your opinions and value your time and money.
They have demonstrated expertise and experience working on numerous complicated projects, allowing them to rise to any challenge. Hire iOS developers for any of the Apple projects you have in mind. Hire Android developers if you are planning to launch your Android app.
The cost of using our mobile app development services is competitively low. We ensure that the resources are utilized effectively and practically. Because time and money are valuable resources, the land we believe in saving, be it your data, time, money, or ideas.
To provide you with complete ownership and validation of the app design or app idea, our developers sign an NDA. We value privacy and protect customer-sensitive information.
Convey your ideas, and our developers will understand your vision. They are aware of your needs and the application’s needs for the business. You have an idea, and we will make it a reality.
To maintain the App in line with user needs and Apple upgrades, our iOS developers stay current on the most recent Apple guidelines. The most recent upgrades made by the Android community to keep the program cutting-edge are well-known to our Android developers.
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Jayanti Katariya is the CEO of Moon Technolabs, a fast-growing IT solutions provider, with 18+ years of experience in the industry. Passionate about developing creative apps from a young age, he pursued an engineering degree to further this interest. Under his leadership, Moon Technolabs has helped numerous brands establish their online presence and he has also launched an invoicing software that assists businesses to streamline their financial operations.
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