Startups often need help with financial issues in the early stages due to an unstable and rapidly evolving environment. They need precise knowledge of their expenses for each business aspect at any given time, especially their app development budget.
More and more businesses invest in mobile app development, keeping in mind that there are 3.3 million Android apps on Google Play, and the number of iOS apps is 2.2 million on the App Store, according to Bussines of App
Statista predicts that total mobile app market revenue is expected to show an annual growth rate of 8.83%, resulting in a projected market volume of $673.80 billion by 2027.
If you're a startup looking to digitalize your idea and enter the market for testing and collecting user feedback, we'll briefly outline the factors that impact the most app development costs and finally answer the client's dilemma "How much does it cost to build a mobile app?"
Before starting your project, it's important to conduct a detailed mobile app development cost breakdown to understand the expenses associated with design, development, testing, and maintenance.
5 main factors that affect mobile app development costs
It's challenging to know in advance how to choose the right company for mobile app development and how much it costs to hire a development team. However, app development cost depends on many other factors. We'll shortly list them to help you understand why some services are more expensive and what's included in the offers you receive from mobile app development companies.
*Prices are based on industry knowledge and trends observed in the app development market
App complexity and functionality
Simple apps:
Typically includes basic functionality like a calculator, photo editing, or simple utility. Costs can range from $5,000 to $20,000. An example of an app like this is Shazam.
What is the difference between MVP and simple apps?
The terms "MVP (Minimum viable product)" and "simple app" are different concepts in the context of app development.
MVP refers to building an initial app version with the minimum set of features to validate the idea and get user feedback. It only has the essential functionality and basic features to solve the main issue or fulfill the primary need of the target audience. It's not necessarily a simple app - its complexity varies according to what's needed to adequately verify the idea. MVPs are often designed to minimize initial investment by focusing only on essential features needed to test the core concept, which can reduce development time and reduce app development costs. However, they may require additional funding later as the product evolves based on user feedback.
On the other hand, simple apps focus on doing a few basic features very well, rather than providing a broad range of functionalities. Their UI/UX design is minimalistic and they solve a specific problem without unnecessary complexity. Core simplicity is often maintained as a key feature.
Medium complexity apps:
Apps with more features such as user authentication, basic backend, and integration with APIs or third-party services. Costs generally range from $20,000 to $100,000. A famous example of an app with medium complexity is Uber.
Complex apps:
Feature-rich apps with advanced functionalities such as real-time updates, complex backend systems, and integration with multiple third-party services. Costs can vary significantly and typically range from $100,000 to $500,000 or more. Instagram is an app that launched as a simple photo-sharing platform and evolved into a social media app with a wide range of complex features.
Platform choice
Single platform:
Mobile app development cost for either iOS or Android can be between $20,000 to $150,000, depending on complexity. Each platform has its design guidelines and experience expectations that can involve additional app cost to ensure the app feels native to the platform.
Native app development can prove to be an economical strategy, particularly for young companies seeking to rush into the market. The development tools, concerns about UI/UX design, testing, maintenance, and platform selection are just a few of the factors that will affect the entire app development cost. Carefully considering and allocating funds for these aspects is necessary to guarantee a successful and sustainable app launch.
Cross-Platform:
Using frameworks like Flutter or Kotlin Multiplatform for cross-platform development can range from $50,000 to $250,000. If you choose this option, you can have your MVP ready in a very short time, sometimes even in 2 weeks!
Cross-platform development aims to create a single codebase that works on multiple platforms, such as iOS and Android, which can lead to cost savings in several areas but may also introduce additional hidden app development costs.
Those are usually the costs associated with learning new frameworks and the time needed for developers to find existing libraries. However, app maintenance cost can be lower because updates and bug fixes can be applied to a single codebase rather than multiple native codebases.
Location of the development team
App development cost can vary significantly based on the location of the development team due to differences in labor costs and living expenses. For instance, hiring developers in regions like North America or Western Europe is typically more expensive than in regions like Eastern Europe, India, or Southeast Asia. These regional cost differences can impact the overall budget for an app development project, affecting both initial development and ongoing app maintenance cost.
North America and Western Europe:
This is the region where developers typically charge between $100 to $250 per hour. Developing a medium-complexity app can range from $100,000 to $500,000 or more.
Eastern Europe, Asia, and South America:
Some average prices you can expect for building a mobile app in this region are usually between $30 to $100 per hour. Developing a similar app as in the previous region can cost between $40,000 to $200,000.
Aetherius Solutions from Serbia has proved to be one of the best mobile app development companies in Serbia in July 2024 based on The Manifest.
Development team size:
Small team
A small team (1-3 developers) is suitable for simpler apps, costing from $20,000 to $100,000.
Medium Team
Medium team (4-8 developers) costs ranging from $80,000 to $400,000.
Large Team
Large team (8+ developers) has high hourly rates but is capable of faster development and handling complex projects, costing $150,000 to $500,000 or more.
Depending on the team size, you can get your MVP within a month or gradually build your mobile app if not in a hurry. You can check here the pricing packages tailored precisely to the needs of startups and adapted to their budget.
UI/UX Design
High-quality design requires skilled professionals and research, which can impact the overall app development budget and lead to higher costs. If you choose to invest in detailed design, it can pay off in having a user-friendly app that increases user satisfaction and retention.
On the other hand, if your choice is to reduce app development cost by cutting corners on UI/UX design, that might save money upfront but can result in a less engaging app, leading to higher costs in the long run due to necessary redesigns and user dissatisfaction.
Basic UI Design:
Simple designs for straightforward apps can range from $5,000 to $15,000.
Advanced UI/UX Design:
Customized designs with user interactions may cost between $15,000 to $50,000 or more.
Broad UI/UX Services:
Including user research, wireframing, prototyping, and usability testing can add $5,000 to $20,000 depending on the scope and complexity.
Maintenance and updates
Higher initial app development costs often reflect coding flexibility and scalability, which can reduce the frequency and complexity of maintenance issues. On the contrary, a lower app development cost may result in a less well-architected app, leading to more frequent and costly maintenance needs. Investing in quality development upfront can thus lead to lower long-term maintenance costs and a more stable app.
Post-launch maintenance is crucial for keeping your app relevant:
Maintenance:
Regular updates, bug fixes, and new feature additions generally cost 15-20% of the initial development cost per year.
Server and Hosting:
Depending on your app's data requirements, server costs can range from $2,000 to $15,000 per year.
Conclusion
In today's market full of mobile app development companies, it is difficult to choose the right MVP development company and make a good decision. Choosing the right partner who understands your goals and vision is crucial for the success of the entire app development project. Take everything into consideration when making your decision and compare offers with other MVP development companies and whether there is a good balance between price and MVP development services provided.
When planning the budget for your product and the entire mobile app development process, be sure to consider all the mentioned factors that affect app development cost. Of course, prices can always vary depending on the needs that change as the app adapts to user feedback. However, none of this should cause problems or disrupt the app development budget if communicated in advance with the app.
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