How Much Does Mobile App Development
Cost in 2021
The mobile app industry is projected to generate a revenue of $935 billion by 2023. If you have a brilliant
app idea, now is the perfect time to get in the game. But before you jump into mobile app development,
you would want to know how much it would cost you.
The cost of app development services depends on several factors. The kind of app you want, the
location of your service provider etc all contribute to the total budget. Typically while calculating the cost
of mobile app development, businesses tend to factor in only the development phase of the app. What
most businesses don’t account for is the hidden cost involved in the pre and post development phase.
Let’s have a look at the different phases of an app development process to understand the hidden costs
involved. A typical app lifecycle stretches across 4 stages -
● Pre-development phase - During this phase you will be doing market research, competitors
analysis, and app analysis. Time and resources involved to do so will affect the cost of the final
product. You can expect to spend 10% of your budget for this phase.
● Development phase - During this phase you will partner with service providers to build the app.
There are several factors that affect the cost involved in this phase, described in detail below.
Usually it may cost you anywhere upward of $10k, depending on the type and features of the
app.
● Deployment phase - The deployment phase will take care of licensing/patenting needs,
publishing charges and cost involved in beta-testing. You might be spending anywhere between
$5k - $10k in this process.
● Maintenance phase - This is the post-development phase of the app, where typical charges
include promotion, upgrades and regular maintenance of the app. It is an ongoing process, and
is usually about 15% - 20% of the original app development cost.
Why App Fails and What Makes an App Commercially Viable
A research by Statista shows that 25% of the apps installed in 2019 were abandoned after the first use.
One of the main reasons why apps fail is because majority businesses lack the foresight to monetize
their app properly. Poor research and lack of proper execution also contribute to the success/failure of
an app.
Mobile app development is a costly affair. You don’t want to invest in something only to meet with a loss
in the end. It is important to calculate the ROI expected to be generated from the app, even before to
begin the design process. The ROI can be measured by factoring in the development costs and weighing
your KPI against them. The KPI metrics could be anything, ranging from the number of new customers
gained to a % increase in sales.
Only when your projected ROI meets the actual returns, will your app add real value to your business. In
order to precisely calculate the ROI on an app, it would be wise to understand the different factors that
influence the cost of an app development.
Factors that Affect the Cost of App Development
So how much does an app development cost? In short, there are no fixed answers. The rate of app
development services hinges on several factors - complexities of the app, type of service provider,
post-release expenses, etc. We have already explained how hidden costs may affect your budget for app
development. Now we will look at the factors that influence the development phase itself.
Type of App
Apps are differentiated based on the consumer markets they target. They are broadly categorised into
six different segments. In this, we have Lifestyle, Social Media, Utility, Productivity, Games &
Entertainment, and News & Information apps. Your app development cost will fluctuate depending on
the type of app you wish to build. Expect to spend more on Gaming and entertainment apps, while News
& Information apps will cost you less.
Platform Used
Based on the coding technology used, there are three basic types of framework to build an app - Native
apps, Web apps and Hybrid apps.
● Native apps - They are generally faster and more reliable since they are developed for a single
platform. This also drives up costs, however, since you would need to duplicate the effort in each
different platform.
● Web apps - They are accessed via the mobile browser, which means some functionalities may be
missing in different browsers. Cost-wise they may be cheaper than native apps, since there is no
customization needed according to the device platform.
● Hybrid apps - These are essentially web apps that are put in a native shell. They use a
combination of web technologies and native APIs. Although they lack the power and speed of
native apps, they are far more economical and quicker to build.
Type of Development Partner
When it comes to choosing a developing partner, you have three options. You may choose to hire a
freelancer, outsource the development to an app development company or go with your in-house team.
Each provider has their own merits and drawbacks.
● Freelancer - While hiring a freelancer might be the cheapest option available, they do not have
the same level of expertise or experience as an agency.
● InHouse - An in-house team of experts can be your best bet when you want full control over the
process, and are planning for a long-term project. However you should be aware that an
in-house team comes with a high set-up cost, and may lack necessary expertise.
● App development company - Majority businesses choose to opt for a third-party agency to
develop their apps. They are faster, cheaper and offer far greater experience coupled with
industry-standard quality.
Location of Development Partner
Different geographical locations of your service provider will affect the price of app development. The
average hourly rate for app development in the U.S. may reach above $200. In Australia, that figure
stands at around $110 approximately. In comparison, the eastern European standard is somewhere
around $35 per hour. India offers one of the cheapest hourly rates for mobile app development, at
approximately $26 an hour.
Features and Functionalities
Your total budget for mobile app development will squarely rest on the range of features and
functionalities you aim to include. Basic features like push notifications, login portals are cheaper
compared to more complex ones, like web portals and payment systems.
A research by [Link] estimated the cost of various elements that firms typically invest in. According to
the study, 70% of the firms spent less than $5k in push notifications, while 53% spent around $5k - $25k
in web portal.
Size of Resources
The team size working on the development process will vary depending upon the complexity of the app,
and the type of service provider. While a larger team size may ensure quicker development, it also
increases the total budget considerably.
How to Cut Mobile App Development Cost
There are a number of ways to cut down the development cost, not the least of which is hiring an app
development company that gives you a great deal. Look for competitive pricing in the market, when you
start searching for app development services. Additionally, you can explore these options during the
development phase itself to reduce the cost further.
● Cross-platform development
Typically, you would want to develop your app in multiple platforms to reach the largest user
base. Typically, this means you need to target both android users and iOS users. While Native
apps are faster and more reliable, they are also quite expensive to build across different OS.
Cross-platform apps include both web apps and hybrid apps. This means you need to hire a
single team for a single app that works on both android and iOS platforms. Cross-platform apps
are compatible on all devices, hence cheaper and quicker to develop.
● Build an MVP App
Consider building an MVP (Minimum Viable Product) app to reduce development costs. An MVP
app is the basic version of your app that can be tested in the market. It provides minimal
functionalities while validating product assumptions and testing consumer feedback. It allows for
adjustments and further improvements, while scaling down development costs.
● Use generic pre-built solutions
When it comes to choosing custom solutions, you might find yourself in a hard and rock place.
The more customization you opt for in your app, the more it is going to cost you. Try to go for
popular and generic tech stacks to save your budget.
Now that you know how to calculate the cost of mobile app development, factor in all elements to set
your budget. Always do thorough market research before hiring a developer. And last, but not the least,
set your expectations according to your budget.
-----------------------
Sources:
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
Hemingway Screenshot
Checklist:
Goal DETAIL OK?
Proofread like a HAWK manually. Proofread for 2 goals: ,
1. ELIMINATE
- typos
- grammar errors.
Use Grammarly.
[Link]
2. IMPROVE the content, so
- remove fluff (shorten your sentences)
- replace weak words with powerful words
- strengthen the logical flow of ideas
Correction - remove unnatural words (write like you talk) YES
Check for plagiarism -
[Link]
Correction * paste only 200 words per search YES
Correction Use the correct language (UK/US/etc.). Ask if you're not sure. YES
Insert 3-4 images per article, with URLs of the images also given
Engagement below them. YES
Use these techniques
1. Bullets
2. Questions
3. Quotes from important people related to the niche the audience
is interested in
4. Size variations in sentences and paras
5. Add a YouTube video/Ted Talk video link
6. Call to action in the end
7. Use bucket brigades to push your reader down your content -
[Link]
writing/
(use your judgement, don't overwhelm the reader)
8. Guess what the reader wants to know about - Use Google
Engagement suggested keywords and People Also Ask questions YES
Use Hemingway editor to identify and weed out passive voice and
'hard/very hard' sentences.
[Link]
Engagement Video: [Link] YES
Does your first sentence grab attention?
Like all great copywriting (and storytelling), the only goal of the
first sentence is to make the reader want to read the second
sentence. And the second sentence should effortlessly lead the
Persuasion reader to the third. YES
Persuasion Did you use the Slippery Slide to keep your reader READING? YES
Paras, shorter the better. Make your content a CONVERSATION, not
a SPEECH. Shorter the better. Even a single sentence in a para
works. Don't use more than 3 sentences in a para, unless you are
Persuasion sure that's necessary. And, keep your sentences short. YES
Ensure you use 5 high authority hyperlinks in the content (science
magazines, govt pages, URLs from Google top rankers)
SEO Finding good citations - [Link] YES
Client hyperlinking (if needed) should not look promotional.
SEO Should be done in the top half of the article. YES
Mention a couple of other non competing brands in ur article so
that our client's mention doesn't "shout out at the reader" (only if
SEO any client hyperlinking is asked for in the content) YES
Please ask yourself:
Is the content written specifically for a target audience? (should
not be generic or wrongly targeted)
Is the content justifying the promise of the title?
Is the content engaging?
Are you sure there is no OBSCURE content anywhere (means
content that confuses the reader, without meaning anything
concrete)
Please bring it up to the level where you can answer in the
Suitability affirmative to all questions YES
Upload the Google doc in the designated folder
Workflow Google docs management - [Link] YES
Followed the formatting guidelines?
Workflow Formatting guidelines - [Link]
Workflow Transfer the ownership to kinshukgupta7566@[Link]
Workflow Update the right status in the tracker sheet
Workflow The self-review, done every time, consciously. YES
Specific Instructions:
Keywords: mobile app development, why app fails, app development services, app development
company
