App Development Cost Factors & What It Means For Your Next App Project

Everyone willing to get an app developed for their business has this common question for which they are all seeking an answer. Now, it is not possible to answer this question in a binary manner. However, it is sure to narrow down the response by looking into what all goes in the development of an app, and that way, it is possible to know a figure that is very close to the actual app development cost.

This complicated question can be answered through a series of questions that will help in untying the response. So, before we estimate the cost of creating an app, it is crucial to unravel how the app is usually developed and what goes into its creation. A mobile app can be made by a high-priced development firm or by a resourceful team of developers, or a freelancer can also develop it. All of these factors bring a big change in the development of an app. Now before contacting a development firm or a freelancer, it is vital that you first explore your needs.

What will be your revenue model?

This is usually the first question that requires an answer. After all, everyone willing to get an app developed has the aim to make lots of money. And the app monetization model is the primary factor influencing the app development cost. Hence, one must first seek answers to the following questions, such as:

• Which platform is preferred by your target audience?
• What is the product that you want to sell?
• Will, any devices require to be integrated to make the app more responsive?
• Will your app be free or paid?
• Will it has in-app purchases?
• Will, there be any advertisements?

To decide the app cost, it is vital to seek answers to these questions, and they directly influence the app cost. For instance, apps requiring in-app purchases require more effort to be developed as compared to paid apps. Also, an app with e-commerce integration requires more investment in terms of time & cost.

What is your target audience?

Ultimately, it will be your customers who will buy your app; hence it is vital to know them well. It is crucial to recognize the problem which your app is trying to solve. This helps in finding the target audience. Often businesses fail to recognize their target audience, which leads to them facing a defeat by their competitors who planned it well to streamline their offerings to serve the target audience. Whether you are building an app for millennials like a photo-sharing app, online payments app, an app for sports enthusiasts, or an app for pet lovers, you need to identify the exact target audience.

Will your app be free or paid? Will it have e-commerce integration?

Speaking of free apps, they make money through a number of ways, like sponsorship, advertisement, and email marketing. In, case of e-commerce apps, they tend to earn money via selling their own products or by fetching commissions from their sellers.

Setting the right price is crucial in terms of paid apps. In the case of the paid apps, they are making money directly via a number of downloads. And by recognizing the customers’ willingness to purchase the app, the right price can be easily determined.

Will your app be on a single platform or a cross-platform?

It is crucial to finalize your options, and then accordingly, a price can be fixed. However, how do you want your app to be like it should work in a single platform or be cross-platform? This can be decided based on several factors, one being the personality of the device users that have been extensively profiled. It can be tapped to find the users’ preferences.

Make a decision on the Operating System.

One must know the app’s availability within each platform to different versions. This can be easily tied in with technical requirements and even can be used as a filter. Like, in the case of apps with more technicality and aiming to execute some specific actions that can be well performed with the advanced versions of OS, then it is best to limit the availability to specific versions and keep the cost low. Same way, iOS might come across as a single platform, but it is important to consider its several versions and updates. One can prefer to stick only to the latest versions as that keeps the development time & costs low, or embrace all the users. If the funds are endless, then choose both the platforms, however in case of limited funds, choose one of the two platforms, either Android or iOS.

Next, let’s explore the positives and negatives that come with both platforms.

Advantages of iOS Apps

In the case of iOS apps, they mostly cost less as compared to Android apps, and they can be built quickly. The iOS audience is usually wealthy and willing to spend money. Hence paid apps perform best on this platform. These users are also more loyal compared to Android users. The strict guideline of Apple guarantees the app’s quality, which is why the iOS version of apps tends to do more business than Android. This platform is also more interactive and easier to use.

Disadvantages of iOS

The hosting cost is higher for iOS, as it can go up to $200, while for Android, it is just $25. There are fewer iOS users in the Asia-Pacific region, and due to its strict guidelines, it won’t be easy to get approval.

Advantages of Android Apps

The Android users are huge in numbers as compared to iOS, mainly in the Asian region. This platform has a low cost per download in comparison to that of iOS. Android requires low maintenance because it doesn’t need to be regularly updated like iOS. Also, Android guidelines are more lenient, which leads to less app development costs and hosting on the Android market.

Disadvantages of Android

Android users generally prefer economic or free apps; hence this is not the best platform for paid apps, and also, the development time is longer on the Android platform.

Hence, before deciding on the final platform, you must know your audience, what you are catering to them, and their behavior, in general. Finally, choose a platform that serves you well.

What type of application do you need?

Another major factor in determining the development cost of an app. So, here let’s have a look at different types of apps.

• Web Apps: These are basically the websites that have been optimized for mobile users. Various surveys are showing that 80 percent of mobile users prefer mobile/web apps over websites.
• Native Apps: This kind of app is created for a particular OS. It can be iOS or Android. These apps are generally complex in nature, and they provide a rich user experience.
• Hybrid Apps: These apps are simpler in nature as they function on a single programming language. However, contrary to native apps, it works on both platforms. Managing and developing these apps is easier, though the user experience of native apps is better than these apps.

Will you outsource the app development or choose in-house app development?

The quality of an app matters tremendously. This factor has a significant influence on the overall app development cost. Hence choosing the correct developer is very most important. One should refrain from picking a low-cost solution to save the cost, as they will ultimately end up with a possible loss of revenue due to this decision. Often, businesses choose in-house app development to retain the benefits. However, the pros and cons should be weighed properly and decide whether to go in-house or outsource the needs.

Hourly app development rates differ from nation-to-nation

The difference can be huge, as much as $10 to $250 per hour. However, it is critical to understand that all categories meet different requirements. In case the budget is low, and you are mainly looking for an app with reasonable quality, then go with the lower-priced options.

But, if budget is not an app and you are looking for an app offering a fantastic user experience, then going with the high-priced options will indeed be favorable for you.

Let’s explore the different hourly price ranges across the nations.

• Like, the US & Canada-based app development firms charge anywhere from $50-$250/hour.
• Australia-based app development firms charge anywhere from $50-$150/hour.
• Western Europe & UK-based app development firms charge anywhere from $35-$170/hour.
• India-based app development companies charge anywhere from $10-$80/hour and still offer remarkable services for the price.

When calculating the average time needed for designing and development, it can fall between 300 to 600 hours. It is crucial to understand that time taken to develop the app can differ as per the app complexity.

Which are the different stages of app development in terms of cost?

An app is developed at different stages. However, in terms of the technical aspect and lifecycle of the app development, it is vital to consider various stages in terms of cost and the amount that has to be spent at each stage. There are mainly five stages of developing an app:

• Researching
• Designing
• Development
• Testing & Deployment
• Support & Maintenance

Understanding the app development cost across various stages helps plan the budget accordingly. It is best not to interfere with the amount required to be invested in these phases with the progression of development.

The actual time required to develop

The average app development time is usually 300 to 600 hours. However, in the case of the development of an app with various complexities regarding features and integration, the time taken can be a lot more. This essentially means that the simple apps can take up to 600 hours while complex apps can take up to 800 hours, and if the app is highly advanced, it can take even more than 1000 hours.

Hence, it is a better idea to get an actual benchmark before developing an app. Decide on the app complexities you want to create and the kind of resource you need to develop. Considering these two factors, it is easy to determine a figure that will be very close to the actual development cost.

Also, after this, there will be additional costs required after the app development. Like, you require resources & budgets for app marketing, backend support, and updates. It is essential to have these mandatory requirements in mind while deciding on the budget. As usual, the businesses only count the urgent expenses for app creation and don’t plan the money required at the critical stages of development. Keep in mind that the app is considered complete only once it has been launched with all the support functionalities in place. It can be a mistake to leave out these vital aspects.

Estimation of Development Cost

Now let’s get an idea on the most likely to be incurring the app development. As per your actual requirements and your choice of several options, the amount is certain to differ. Like, you might end up investing a lot lesser or maybe a lot more. It all depends on your requirements and choices.

• Usually, the cost to create an app by the finest development company can be anywhere from $500,000 to $1million.
• The cost to create an app by a mid-sized development firm can be anywhere from $150,000 to $400,000.
• The cost to create an app by a freelancer can be anywhere between $10000 to $25,000.

These figures give an approx idea of what you need to consider, and depending on your requirements and choices, you can be the cost of your app.