From entertainment to shopping, payments to video conferencing, smartphones and mobile apps are present in every aspect of our lives. Developing a mobile app offers significant growth potential for e-commerce market players, as mobile app development can be an effective tool for reaching users, meeting their needs, and building a loyal customer base. What factors influence the cost of mobile app development? Details in our article.
The role of smartphones in our lives is well demonstrated by the fact that we spend an average of about 5 hours on our phones daily, with 90 percent of that time spent using apps. To reach the target audience, a loyalty app or shopping app is ideal. Still, before creating an app, it is important to understand the potential costs and the factors that influence the final price of mobile app development.

1. Cost of mobile app design in mobile app development

The planning phase, which involves accurately describing the business needs (specification creation), is perhaps the most valuable part of mobile app development. Yet, there are misconceptions that this is just unnecessary time-wasting.
The specification articulates business needs, covering aspects such as the precise description of the online purchasing process, integration with other systems, and user management. Without a specification, many ad hoc decisions are made during development, making the process unpredictable.
If the specification is sufficiently detailed, the cost and time required for mobile app development can be estimated more accurately, leading to a more predictable outcome. Preliminary discussions for creating the specification involve key account managers, project managers, consultants, developers, and UX/UI experts from the mobile app development company.
The time (1-2 months) and money (usually 10-15% of the total project cost) invested in creating the specification quickly pay off during the development phase.

2. Cost of app development and testing in mobile app development

For custom mobile app development, costs can vary widely, from a few hundred thousand to tens of millions of forints. The final amount depends on several factors:
  • Methodology (agile, hybrid)
  • Type of mobile application (native, cross-platform)
  • Platform Choice: Decide whether the app will run on iOS, Android, or both. Using Flutter technology can reduce development costs for both platforms. Costs will vary depending on the supported OS versions. Since most users update to the latest OS version shortly after release, focusing on the newest version, particularly for iOS, can be more cost-effective.
  • Purpose (shopping, entertainment, education, financial, etc.)
  • UX Design: Mobile app design includes both the visual UI and the functional UX. Design Sprints, intensive work blocks focused on UX design, can produce an ideal prototype tested with end users. The investments in this phase are determined by the app's scope and desired thoroughness. Visual design can range from basic system designs to unique elements and animations.
  • Feature Complexity: The scope and complexity of your app's features greatly influence the total cost. Beyond basic functionality, additional features such as back-end infrastructure, messaging, push notifications, activity tracking, in-app purchases, hardware utilization, machine learning personalization, web app interface management, advanced data processing, social media integration, and camera or microphone usage can increase expenses. Starting with a basic version (MVP) and gradually adding features can help manage costs.
  • Team composition. The development team typically includes a project manager, UX designer, tester, at least two developers, and possibly a back-end developer. More complex projects require additional developers, some focusing on iOS or Android. Costs vary significantly based on the location and rates of your mobile app development company.
  • Developments needed for integrating with related external systems, and third-party solutions (e.g., ERP, CRM, accounting and invoicing systems, logistics systems, payment service providers, marketing automation solutions)
  • The level of security required for the mobile application (security features such as encryption, two-factor authentication, and PCI DSS audit certification for secure handling of credit card data, may incur additional costs).
  • Labor costs. A contact person must be provided on the client side for at least part-time during the 3-6 month development period. This should also be considered in the cost and business plan.
How much does it cost to build an app?
The cost varies depending on the complexity and design of the application. SaaS solutions or app builders cater to specific use cases and can cost as little as £1 - £200 per month, but they offer very limited to no customisation. A custom app, if the feature set is simple and the app can be built using a low-code app platform, can cost between £5,000 and £50,000, with the typical amount being £35,000. A custom-built native app with a backend and admin component will cost between £50,000 and £200,000, with a typical project size of £90,000.

3. Operational costs of mobile apps: support and maintenance

Launching a mobile application does not mean that there are no further tasks. The IT environment is constantly changing, whether it’s browsers or card payment systems, not to mention other background systems. Without maintenance, this can cause technological lag within half a year, affecting system operation.
Operational (system administration) and maintenance (support) services are essential for the flawless operation of mobile applications and the continuous development of the business. These services can manage future development and updates of the mobile app, as trends and user needs change, and the target audience will demand new features.
Depending on the expected number of users and traffic, it is worth choosing an infrastructure that can safely handle future growth.

4. Other factors influencing the costs of mobile app development

Marketing Costs: Having an app does not mean users will download and use it. Downloads need to be encouraged, which requires a promotional strategy and marketing budget. This includes paid ads, content marketing, email marketing, and influencer collaborations.
App Store Publishing Costs: Completing the app creation is just the start of the mobile app development process, not the end. The next step is to make the app available to users by publishing it in app stores (App Store, Google Play). Access to the apps is through these stores, ensuring security and quality control.
Submitting an app to the Apple App Store or Google Play requires a developer account. A one-time payment of $25 is required to get a developer account for Google Play. The annual fee for the Apple Developer Programme is $99, and the annual fee for the Apple Developer Enterprise Programme is $299. You'll need the latter if you want to develop and deploy proprietary, internal-use apps to your employees, and you want to distribute them privately directly to employees using secure internal systems or through a mobile device management solution. In most cases, the standard App Developer Programme is all you need. There is no specific fee for placing an app on Google Play and the App Store, and you can upload as many apps as you like if you have the accounts described above. However, you will be charged if your app is paid for, or if you offer in-app purchases or subscriptions in your app.
Data Handling: If the app enables video or voice recordings and picture-taking, include cloud-based data storage costs in your budget. The speed of data storage and download can be crucial for some apps, and secure data handling is essential if dealing with confidential information.
How much does it cost to run an app on a monthly basis?
The cost of running/maintaining an app depends on the complexity of the app. Standalone apps can cost almost nothing, but real apps with a backend and proper technical support can cost anywhere from a few hundred to £1-2,000. Much of the ongoing cost will also depend on your product roadmap.

Looking for app developers?

Mobile app development services include a wide range of activities such as design, development, testing, and maintenance. Custom mobile app development services are tailored to meet specific business needs, ensuring a unique and optimized user experience.
When choosing a mobile app development company, it's crucial to consider their expertise, portfolio, and client reviews. Leading mobile app development companies often offer comprehensive mobile app development services, including cross-platform solutions and advanced security features.
In today's competitive market, selecting the right mobile app development agency is essential for ensuring the success of your app.
At LogiNet, we assist you with both native and cross-platform mobile application development. Our professional experts are proficient in various technologies: creating native iOS and Android applications using Kotlin and Swift, and cross-platform solutions using Flutter. Our mobile development team also participates in resource outsourcing projects.
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