The True Mobile App Development Cost: Ongoing Expenses and Maintenance

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March 13, 2024

Table of Content

Introduction to Mobile App Development Cost

When should you be concerned about the mobile app development cost? The instance can be many, however, it is mandatory when you are:

Digitalizing your own business
Planning to make your company a brand
Wanting to increase your sales through data
Targeting a large customer base
Customizing your operations

There are various reasons we can discuss that ratify the need for mobile app development costs. By the time you read this, additional demands may have emerged. These demands will then be met via a mobile app.

Ever since humans existed on Earth, they have struggled for mobility. It led to social engineering in various domains over numerous demographics.

The word mobility, however, changed its intent in the modern era defined by the technosocial revolution.

Hence, mobile apps became the solution to every problem that came into being. In this manuscript, our primary goal is to dissect the factors determining mobile app development costs. Along with it, we’ll further understand the ongoing expenses and maintenance.

Till then, stay tuned!

Overview of Mobile App Development and Trends

The mobile app market closed at 467,083 million USD in the year 2023, according to a report published by Statista. This year it is expected to clock 522,171 million USD as per the same report.

The expense for mobile app development varies according to international marketing dynamics and a few other determinants we will discuss in the upcoming section of this blog.

While considering all the sectors or industries where applications are developed, gaming and social networking apps have dominated the market. They are followed by entertainment and shopping apps respectively.

As previously stated, there are intermittent requirements that become apparent. Similarly, the mobile application industry as a whole is extraordinarily dynamic. As of 2024, the subsequent developments have garnered the interest of every stakeholder in the mobile application industry:

1. Artificial Intelligence (AI) and Machine Learning

The AI market is projected to touch the mark of US$305.90 billion in 2024. By 2030, it is expected to reach US$730.80 billion.AI and ML algorithms are integrated into mobile apps to provide personalized experiences to users. It helps in predictive analysis which in turn lets the UI of an app get tailored according to the user’s search history and preferences.The data obtained with the machine learning algorithms enhances the functionality of an app. This trend is expected to grow unwaveringly.

2. Internet of Things (IoT) Integration

3. Augmented Reality (AR) and Virtual Reality (VR)

With the rise of gaming apps, online retail, and learning management systems, AR and VR technologies are in high demand. They have been providing a seamless experience to the users where they can easily relate to the product, service, or story.The AR/VR market size will be approximately US$38.6 billion by the end of 2024 as per the reports of Statista.

4. Cross-Platform App Development

Cross-platform app development is a significant innovation in the mobile app industry. It has significantly influenced mobile app development costs.Developers are concentrating on expanding their audience by leveraging a single codebase for many platforms such as iOS and Android. React Native, Flutter, and Xamarin have optimized the development process, enabling rapid application delivery.The reduced time to market has reduced the expenses for app development as well.

5. Hybrid App Development

Hybrid application development is a landmark innovation that has brought about a key transformation in the conventional method of app development.Developers are currently emphasizing utilizing a solitary codebase that can be effortlessly executed across various platforms – web browsers, iOS, Android – as well as other platforms.Hybrid application frameworks, such as PhoneGap, Cordova, and Ionic, have significantly optimized the development process.

6. Progressive Web Apps (PWAs)

PWAs provide an integrated strategy that combines elements from both web and mobile applications, incorporating functionalities such as offline access and push notifications.The fact that conversion rates have increased by as much as 20% for businesses that have implemented PWAs demonstrates the significance of PWAs in fostering user engagement.The market size of the PWAs segment is projected to touch US$ 7,600 billion by 2026.

7. Voice-Enabled Interfaces

The prevalence of voice-enabled mobile applications is increasing in tandem with the increasing popularity of virtual assistants such as Alexa, Siri, and Google Assistant.The projected prevalence of digital voice assistants worldwide is expected to surpass 8.4 billion in 2024. While in 2020, it was around 4.2 billion.

Features of App Development Lifecycle

In the process of developing an application, there are multiple phases, each of which has its own set of characteristics. And each step is crucial to determine app development cost. The following are the most common app development lifecycle stages:

1. Idea Generation: Are you also the one who thinks app development is entirely about coding? Well, if you have that thing in your mind then please take a breath to grasp the fact that coding is just one part out of nine app development stages.

The process begins with the generation of ideas where brainstorming is done to find a problem. That problem is then processed further by the Research and Development team to find a sustainable solution.

2. Blueprint Designing: Once the solution is discovered for the problem, it is thoroughly analyzed to design a roadmap. That roadmap consists of a-to-z requirements of the entire app development stages.

3. Prototyping: The design of the user interface (UI) elements initiates the third stage, which enables an examination of the final product in its physical form. The UX team is actively engaged in this phase to guarantee an optimal user experience via the application’s interface.

4. Development: The development consists of two phases: front-end and back-end. Both platforms are distinct. Choosing the appropriate platforms is achieving to achieve the best possible outcome.

5. QA and Testing: This stage carries out many different kinds of testing, such as functional, usability, performance, and security.

6. Deployment: Once the application receives approval from the QA team, it is released via various distribution channels such as the Apple Store and Google Play Store. The app listing is done at this stage.

7. Launch: This stage involves the incorporation of a digital marketing team. They are further subdivided into designers, writers, SEO, and SMM experts. The primary goal of this team is to craft contemporary and industry-based marketing strategies to communicate the right pitch to the target audience.

8. Post-Launch Support: The digital marketing team diligently participates in data collection following the launch. They analyze the user’s behaviour on the application using a variety of analytical instrument metrics.

9. Re-Engineering: While taking into account the marketing dynamics, competition, and need shifts, any application would require re-engineering at the sunset of its lifecycle.

The product is re-engineered where advanced technologies are researched and proper solutions to restore the viability of the app are crafted.

Step-by-Step Successful Application Development Guide

Determinants of the Mobile App Development Cost (Estimates)

The process of determining the average cost to develop an app is a complex procedure that is greatly impacted by a wide variety of factors. For example, the functionalities of the application differ from one to another. They can be categorized as micro, mega, and enterprise apps. Also, the development team’s location heavily determines the cost. In the same reign, there are other costs associated with it which are discussed below in detail:

1. App Type

Among many determinants of mobile app development price, one of the most important is the type of app. The time taken to build an app also varies from type to type. Below are some of the categories:

No.	App Type	Development Time	Examples
1.	E-Commerce	4-12 months	Amazon, Alibaba, eBay
2.	Gaming	2-12 months	Subway Surfers, Candy Crush, PUBG
3.	Social Media	6-12 months	Instagram, Snapchat, Facebook
4	Health & Fitness	4-6 months	Samsung Health, Noom, Central Dynamics
5.	On-Demand	4-8 months	iFood, TidyMe, Edaija
6.	Delivery	6-8 months	DoorDash, Seamless, Instacart
7.	Education	3-6 months	Nurture’s Craft, Slashie, TED-Ed

However, the App type isn’t a standalone factor to depend upon. Without knowing the exact requirements, one cannot ascertain the final cost. Therefore, let’s go to the next crucial thing.

2. Development Team Location

Companies are aware that the expense of employing an expert in software development differs based on the geography of the developer. In broad terms, software development expenses are relatively more affordable in developing countries than in the developed countries of the West.

Failure to account for the geographical placement of developers will result in an incomplete and unreliable response to this inquiry.

You can check below the rate variations as per the geography:

Location	Jr. Developer Rate (Avg. Per Hour)	Sr. Developer Rate (Avg. Per Hour)
North America	$60-100	$70-130
Latin America	$25-60	$35-70
Central Europe	$30-75	$40-80
Africa	$25-35	$25-40
Asia	$15-40	$20-55
Eastern Europe	$15-40	$20-55

Nevertheless, it also alone cannot be a decision-making element. Therefore, the next important thing to consider is app complexity.

3. App Complexity

App Complexity can be attributed to a multitude of factors, including the depth of user interface design, the complexity of functionality, and the requirements for smooth integration with external services.

In their pursuit to provide exceptional user experiences, developers encounter obstacles such as the efficient management of extensive datasets, the optimization of operations across various devices, and the implementation of strong security protocols.

We have divided the app complexities into three parts:

App Division	Complexities	Development Time
Micro	Basic UI MVP Functionality	3-4 months
Macro	Custom UI Modern Features	4-10 months
Mega	Industry Specific UI Multiple Platforms Advanced Features	1+ Year

After finalizing the app type, determining the development team’s location, and bifurcating the app’s complexities, we need to understand the platforms where the app will be built. It will subsequently help us determine the average mobile app price for development.

4. App Platform

Custom mobile app development can be carried out for native, cross-platform, hybrid, or web platforms. The requirements, demands, and expenses differ across all the platforms mentioned. One can select a platform based on the business size, allotted budget, and scope.Small enterprises can choose a single-platform application. When there is enough funding available, they can focus on developing for both iOS and Android platforms.

5. App Maintenance

It is essential to keep in mind that the development of a mobile or web application does not conclude once the application goes live in app stores or on the web.

Annual app maintenance costs are estimated to range from 15-20% of the initial development investment but can vary based on the number of features and functionalities, the scale of the development team, the complexity of the application, and the platform on which it is developed.

In broader terms, costs included with app maintenance are:

Software Updates
Server Updates
Custom Support
CyberSecurity
Bug Fixing

The above-discussed five determinants of application development are comprehensive enough to determine the cost to develop a mobile app. Nonetheless, there can be other ways as well to determine the cost, for example; instead of bifurcating the application’s overall possible costs, the team involved in the application development process can be individually ascertained and allocated the budget.

Therefore, to understand it more correctly, we’ll have to understand whether should we go with the in-house team or outsource our application development

In-House Team vs. Outsourcing: What Should You Choose?

There are various factors like expertise, location, timeline, budget, etc., that decide whether one should outsource the mobile app development process or hire an in-house team. Both have their pros and cons.

There is no denying that an in-house team provides you with exclusive control over the project. Especially, when you have long-term projects with your client base, including maintenance, and post-delivery services.

The outsourcing model, however, is helpful if the budget is tight, and one does not commit to long-term projects.

However, let us understand in detail the cost of both models.

In-House Team Cost

Any in-house team requires a large sum of money. That big sum includes hiring cost, onboarding cost, infrastructure cost, training cost, and maintenance cost.

Additionally, there is no assurance that the in-house team is proficient in every job function. In such a scenario, you’re likely to compromise on various fronts. You may not have access to every trending technology or requirement if your in-house team is not well-versed in the updates.

However, in the case of long-term projects, customizations, and relationship building, in-house is recommended.

Outsourcing Cost

Outsourcing is thought to be a cost-effective, uncluttered, and less time-to-market delivery model. However, it is still recommended to go through all the significant points that determine the outsourcing model’s cost.

1. Project Complexity

The complexity of any project must be estimated before contacting an outsource team. In some cases when any project is highly complex, it becomes difficult to communicate the requirements in a streamlined way. As a result, the project gets delayed and costs increase.

2. Hourly Rates

It is also important for the project manager or the person who coordinates with the outsourced team head, to have proper budgeting. The hourly rates differ from country to country and level of expertise.

3. Outsource Model

The project can be outsourced either based on hourly rates or the whole project cost can be estimated initially and based on it the payment can be done. However, both ways are employed for specific purposes. Based on your project’s requirements you can choose your model.

4. Currency Rates (Offshore Outsourcing)

Generally, when a company decides to outsource its product, it aims to bring the best of all the expertise. In search of experts, they tend to cross boundaries and find experts from different locations of the world. However, it is important to check the currency exchange rates because the budget must not be mismanaged because of high conversion rates.

What to Choose?

Pros of In-House Team and Outsourcing

Name	In-House	Outsource
Budget	When the budget is high, you can hire an in-house team.	In a tight budget, outsourcing is the best option.
Control	The in-house team gives full control over the project.	There is less control over the project.
Communication	Easy to communicate. So, when the project is complex, an in-house team is advised.	The communication gap is there. Only advised when the project and its scope are straightforward.
Expertise	Onboarding costs are high, therefore, experts in each role aren’t easily accessible.	No geographical boundary. Experts can be reached from any corner of the world.
Risk	Risk can be easily managed with the in-house team.	Risk mitigation is dependent on the vendor.

How can SilverXis Assist in Reducing the Mobile App Development Cost?

SilverXis Inc. is a custom mobile app development company in Irving, Texas, (USA). It has helped companies across various industries streamline their operations through mobile app solutions. However, there are some prerequisites that we consider before initiating the development process.

1. Quantitative Conceptualization

Our methodology consists of identifying the problem, evaluating possible solutions, developing a roadmap, and finally creating the solution based on data.In today’s world of easy access to information and statistics, it would be foolish to craft a solution without data. The use of data makes decision-making more reliable and sustainable.

2. Right Platform Selection

Mobile application development is done taking into consideration the industry. Every industry has its requirements, preferences, and tastes.

Those demands are fulfilled with tailored solutions. Among them, one of the most crucial is to choose the right platform for development. The mobile app development cost is reduced when our team of platform-specific developers starts working on your project.

3. Agile Development Process

Our company adopts an agile development methodology when it comes to the creation of mobile applications. By employing iterative processes of planning, development, testing, and feedback, we place customer collaboration and adaptability at the forefront to efficiently deliver mobile solutions of superior quality.

Consistent stand-up meetings, sprint planning sessions, and sprint evaluations are conducted by our team to guarantee adherence to project objectives and client anticipations.

By prioritizing increment delivery and ongoing enhancement, we effectively implement Agile principles to promptly adapt to shifting market dynamics and requirements. As a result, we consistently deliver mobile applications that cater to the changing demands of our users.

4. Expert Team

At SilverXis Inc., you’ll find an amalgamation of experience and expertise. On one side, we have senior developers who have delivered multiple projects in different industries. On the other side, we have a team of young and enthusiastic developers who have fresh ideas that can be implemented to beat the competition.

5. Long-Term Partnership

We offer ongoing maintenance and support at competitive rates, maximizing ROI over time.

Conclusion

Are you ready to set sail on the path to creating a state-of-the-art mobile app for your company? Well, as per our discussion on the pros and cons of in-house and outsourcing, you can consult our experienced mobile app development team to finally decide the most suitable method for your project.

The mobile app development cost needs to be ascertained as accurately as possible so that other operations of the business can be channeled profitably.

Connect with us now to learn more about the cost of your mobile app development.

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Frequently Asked
Questions

How much would it cost to develop an app in the US?

The development cost can only be ascertained when the app type, complexity, platform, and other related questions are obtained. Based on that app development cost can be ascertained as mentioned below:

Micro App
Macro App
Mega

How much does it cost to build an app in Canada?

Well, the average price for app development in Canada ranges from CAD $15,000 to CAD $300,000. However, it is still important to know the app's complexity, type, and model of development. The true mobile app cost will only be ascertained after that.

How much does it cost to build an app in India?

India is a booming economy. The cost of mobile app development is relatively affordable in India. Companies from developed nations outsource their work because of affordability and expertise. However, to know the exact cost, one must clarify the app type, complexity, platform, and similar other questions. For a rough idea, it can range between ₹500,000 (around $6,000 USD) to ₹9,000,000 (around $110,000 USD).

How do you estimate mobile app development costs?

The mobile app development costs are estimated with the help of the following determinants:

App Type
Development Team Location
App Complexity
App Platform
App Maintenance

How much does it cost to maintain an app?

The app maintenance cost is normally not very high. However, if the below-mentioned factors are taken into consideration, the actual cost can be calculated:

Software Updates
Server Updates
Custom Support
CyberSecurity
Bug Fixing

How to choose a mobile app development company?

To choose the best company for your app development project, it is important to consider:

Team Location
Team Expertise
Team Portfolio
Team Methodology
Team Review

If you’re looking for expert support, contact us now, and find your trusted partner for your next project.

What industry type of app development does SilverXis provide?

SilverXis Inc. has a vast experience of 17+ in the IT realm. It has helped clients globally to solve their business operations. For almost two decades, SilverXis worked in various domains such as health & fitness, education, government, manufacturing, aviation, entertainment, real estate, FMCG, e-commerce, OTT, travel & tourism, social media, etc. Get in touch with our specialized business consultants who will help you decide the most suitable solution for your business which will be cost-effective and long-lasting.