Transforming a unique business idea into a smartphone app takes a lot of brainstorming and efforts. Today, the smartphone app marketplace has become highly competitive. The revenue from the highest rated apps is expected to reach $190 by the end of 2020.
How much does it cost to make a successful app? This is a million dollar question. This post will put forward real and practical figures prevailing in the marketplace.
If you have finally decided to develop a mobile app, you are already ahead from the crowd. The success of your mobile app depends upon:
- What type of app do you expect?
- From where does the talent come?
- What features you are willing to add?
- How quickly you want to launch the app?
Unboxing new ideas
Developing a successful app despite a lot of pitfalls is a challenge itself. Entrepreneurs have the urge to expand their business & take it to new heights.
Being an entrepreneur, you have to combine the split visuals into a place where you get a picture-perfect view for your product.
Before you plan to bake everything together, it’s important to outline the budget of your app. Defining the budget requires an in-depth understanding of the industry requirements.
Document your App Market Research & Strategy
Do you know that 95% of the companies create a document for the app market research & strategy so that consumers resonate with the brand? Before hitting the nail on the head, it is important to understand what most people are excited about.
- Think what occupies the mind of your customers?
- What keeps competitors awake at night?
- Where do they lose efficiency?
Regardless of your app idea, it is important to clarify your niche. You may think you have an amazing idea but there are dozens of similar apps that are already successful.
Do you have an idea of the factors on which the success rate depends:
- 35% of the apps get successful that thoroughly researched market needs.
- 18% succeed as they had a powerful market core.
- 23% because of the strong business model.
- 15% outperformed other competitors.
Before building an app, it is important to identify challenges and problems as this will help to shape your product in a better way. If the feature doesn’t address, don’t waste your time on development-even if your competitors are into it.
Clear Platform Dilemma
Before deciding the platform, consider your target audience’s geographical location and demographic characteristics. If you are planning to target a broader audience, Android is the best bet. If your app has Europe or North American audiences, iOS is a good choice.
Evaluate Functionality & Design
Before budgeting the app, it is critical to decide the features, project timeline and the resource required.
The median price of building an app by the dedicated developers is $171,450 according to a survey held by Clutch. Typical cost ranges between $100,000 to $500,000.
There is no upfront cost for this. With an almost zero monthly fee, an app can be built from scratch with the help of Appy Pie, Shoutem, Swiftic.
- Enterprise architect: Bridges the gap between business capabilities and technological functionalities of the app.
- Project manager: Supervises the entire development process.
- UI/UX designer: Adds aesthetic appeal to the app while giving a streamlined user experience.
- Software developer: Codes the application.
- Quality Analyst: Tests the code quality and resolves bugs.
- Technical Writer: Creates engaging content for the application.
The smartphone app development design implies different attributes like visual design, user interface, logos, icons, wireframe, branding, etc.
Here are the factors that impact the cost of your app:
If you are planning to hire an experienced senior graphic designer, be ready to pay approx.. $150 per hour. At the same time, someone who is less experienced can charge $45/hour.
The cost of hiring designers ranges differently from different parts of the world. USA & Canada: $50-$250/hour, Australia: $50-$150, Europe & UK: $25 to $175, Asia: $10-$80.
Basic and simple mobile apps start from $5,000 (e.g; Flashlight), mid-range complexity apps range from $10,000 (e.g; WhatsApp) and highly complex from $25,000 (e.g; Facebook).
Note: If you have an idea about the number of developers you need and their hourly rates, you can determine the cost quickly using our outsourcing ROI calculator.
Do you know that the Development cost depends on the platform?
The most prominent platforms considered are Android and iOS. Building an app in iOS is comparatively faster. For this reason, the cost of building the iOS app is less than Android.
This is another reason why many companies launch iOS apps in order to evaluate the response of the audience.
Here’s the cost of developing an Android application:
Elementary apps: $25,000 to $35,000
Standard apps: $45,000 to $55,000
Complex apps: $55,000 to $100,000
High-level apps: $75,000 to $150,000
Related Blog: A Roadmap to mobile app development for startups!
Now, you should also review the estimated cost of apps depending on their nature:
Table-based simple apps: They are simple apps that displays a collection of data. This type of app practically has no features and very less time is taken to develop such an app.
Expected cost: $1,000 to $4,000
Database apps: They are one level above the table base apps. They manipulate data by pulling large data sets. Retrieving, updating and manipulating data is a challenging task. And for this reason, it takes more time to develop. For example dictionaries and encyclopedias.
Expected cost: $8,000 to $50,000
Game apps: These are the most thought-provoking apps. They use multiple functionalities and high-tech features like augmented reality, virtual reality, 3D graphics and more.
Games: $10,000 to $250,000
You have finally accomplished it! Now, it has become easy for your customers to interact with you like never before. This is the right time to market. Intrigued, aren’t you?
Here are the ways to promote your app for free:
Get more engagement and leads with email lists. Thinking why? Very few people are likely to frequently change their email address. Add in-app subscription and tempt them with features.
Don’t miss this phenomenal opportunity for monetization. Go for these types of ads:
- Full-screen ads
- Advanced overlay
- Notification Ads
- Banner Ads
Developing and maintaining a mobile application is a costly affair. Here, the revenue model becomes an integral factor.
So, you should plan if you want to go for a freemium or premium model. Though, it is advised to launch a free version and then monetize it later.
In-house or outsource development?
This decision is going to make a huge impact on the overall budget. Choosing a wrong developer may increase the risk of your mobile application to be delayed. Moreover, hiring an in-house developer is not budget friendly especially when you are a startup.
For the above reasons, you should consider hiring a remote development team. It will give you an opportunity to connect with the experienced professionals residing in another geographical location.
Why should you consider to choose offshore development:
- Less investment
- A talented pool of experts
- A better understanding of business needs
- Easy management
Finally, the art of budgeting the mobile app development hold a detrimental factor. Make sure the budget is well-padded and shouldn’t scare you. Also, it is important not to overspend and end up in trouble while you plan to settle the bills.