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App Development Cost: 10 Hidden Costs of Mobile Apps & How to Handle Them

Last Updated August 23, 2017
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Understanding the True Cost of Mobile App Development

Traditional mobile app development can be costly, slow and frustrating. How much does it cost to build an app? A single app development and deployment may cost anywhere between $50,000 and $1,000,000 and it can take from half a year to upward of a year to be completed.

The core issue here is that app development itself is just the tip of the iceberg. The app development process consists of development, deployment and app maintenance. Most people only focus on app development, so the cost of the latter two phases surprises them. This causes app developers to go above their initial app development budget.

Some studies estimate these ongoing costs of app development:

  • In the first two years of a typical mobile app, app development only represents 35% of the total cost (source)
  • The ongoing app maintenance cost for medium-sized enterprise app ranges from $5,000 to $11,000 per month (source)
  • Annual legacy costs can be up to 50% of the original app development costs. This means that if you spent $300,000 on your traditional app development, support and maintenance will cost your up to $150,000 per year!

The key is to understand how mobile apps are built and maintained and what is the relative cost, benefit and downfall of each option.

Key Takeaways

  • Initial Costs: App development can range from $50,000 to $1,000,000 and take up to a year.
  • Ongoing Expenses: Maintenance can cost $5,000 to $11,000 monthly, with legacy costs up to 50% of initial development.
  • Hidden Phases: Deployment and maintenance are often overlooked, leading to budget overruns.
  • Service Subscriptions: Essential services like push notifications and SMS add to ongoing costs.
  • Efficient Solutions: New methodologies can significantly reduce costs and improve control.

We want to introduce you to more efficient methodologies and tools to give you control, reduce risks and save you tens or even hundreds of thousands of dollars! We want to enable you to evaluate all your options and find the best app development solution for you.

How much does mobile app development cost? Let’s dive into the details so we can show you how to reduce your app development cost by up to 90%!

Use the Buildfire free app cost calculator to get an accurate estimate of how much your app will cost
APP COST CALCULATOR

App Development Cost: Hidden Categories in the App Development Process

Before we get into the biggest hidden costs of app development, it’s important that you understand the mobile app architecture.

This is critical when you are looking for a vendor or talking to your IT department for help in developing, hosting and supporting your app. This way, you will understand what they are and aren’t providing.

Keep in mind that for most traditional custom app solutions, the majority of these services need to be purchased and assembled separately. They can be divided into four categories:

  • Functional services (SMS, Push Notifications, etc.)
  • Administrative services (to make updates to your app, manage users, etc.)
  • Infrastructure services (servers, CDN, etc.)
  • IT support services (updates to your app, bug fixes, etc.)

How can we estimate app development cost? Let’s drill deeper into each of these to see which individual roles they play in your mobile app costs. 

Functional Services

Functional services are those needed to execute the functionalities and features of your app.

Service Description Annual Cost
Push Notifications Essential for user engagement and encouraging actions like purchases. $2,400
Social and Chat Encourages sharing and interaction through social media. $1,200
SMS Integrate messaging using services like Twilio. $500
Email Integrate email features with services like Mailgun or Sendgrid. $1,000

While your developer may provide you with a certain functionality, it will not work unless you subscribe to a service that will provide a delivery mechanism. These services may cost hundreds and even thousands of dollars per month, and the number of such services you may need is almost endless.

Here are some most common examples of app development cost based on real features and services. You can use this information to help estimate the cost of your own app development project.

Administrative Services

Plain and simple: you need an intuitive, powerful, accessible and user-friendly administration dashboard.

As a creative professional, you want to be in control and avoid calling the IT department every time you want to access your data or update content.

These costs are the most difficult to anticipate as they will largely depend and differ based on each individual app. However, just like with all the other app costs – they do add up and you will incur them on an ongoing basis. The traditional app development solution doesn’t offer a way to save up on these costs. Simply not including these in your app management isn’t an option as it would take away your control over the content, users and data.

Luckily, this isn’t the only way to develop and maintain an app, and we’ll cover the method to prevent these costs further below.

How much does it cost to build an app? Consider the following essential dashboard features:

Content management. Changing content should be as easy as click and edit. If you can edit a Word document, you should be able to edit your app content – this capability is a must for your dashboard.

Dashboard emulator. You will definitely want to see how changes you make look on the app before pushing them out live to the user community. A previewer app is a must!

Functional services management. Separate dashboards for each of your services are very impractical. Capabilities like monitoring social behavior and sending push notifications, emails and SMS are vital for your app, and routine tasks of managing these services should all be available from a single dashboard.

Dynamic updates. if you are like most app owners, there will be constant updates – it’s the nature of business! Some apps require an elaborate resubmission process every time a simple content change is made. Ensure you build in a dynamic update process whereby a simple click of a button on the app dashboard pushes out the content changes to all apps automatically.

User profiles. You’ll need a way to manage your users’ profiles. Details like password reset forms get easily lost in the design process – a good designer won’t let it happen!

Infrastructure Services

Frequently Asked Questions

What are the hidden costs in mobile app development?

Hidden costs in mobile app development often include deployment, maintenance, and service subscriptions. Platforms like Buildfire make it easier to manage these costs by offering integrated solutions.

How can I reduce the cost of app maintenance?

Reducing app maintenance costs can be achieved by choosing platforms that offer comprehensive support and updates. Buildfire, for instance, provides tools that simplify ongoing maintenance.

What is the role of functional services in app development costs?

Functional services are essential for executing app features and can significantly add to costs. Tools like Buildfire allow businesses to integrate these services efficiently.

How do administrative services impact app development budgets?

Administrative services impact budgets by requiring ongoing management and updates. Efficient dashboards, like those offered by some platforms, can help mitigate these costs.

Why is understanding mobile app architecture important?

Understanding mobile app architecture is crucial for selecting the right vendor and ensuring all necessary services are included, preventing unexpected costs.

Annual Cost Servers These are the basics – servers are where the app will be hosted. Unless you are with the largest of enterprises, you will want to outsource hosting to the likes of Amazon, Google, and Azure. $12,000 Data Storage Data is king, and your app will collect and contain a lot of it. It is crucial that you understand how and where the data will be stored. $3,600 CDN A content delivery network (CDN) is a system of distributed servers that deliver content to the app based on the geographic locations of the user, the origin of the content, and a content delivery server. CDN services are provided by companies like Akamai, CloudFront, and Dyn. $3,600 Images Data Most apps use a lot of images. You will need to have a place to download, process (resize, crop, etc.), and deliver images. Such services are provided by companies like CloudImage.io, Google, and ImageX. $4,800 App Development Tools, Libraries, and Support If you’re using paid deployment tools like IBM MobileFirst, Kinvey, Kony, or Appcelerator to develop your apps on, you will need to subscribe to it over the life of your app. $1,200-100k+

All devices are covered.

Development Approach Device Coverage Cost and Time Efficiency
Native App Development Separate apps for iPhone, Android phones, iPads, and tablets Higher cost and more time-consuming
Buildfire Platform Single app works across all devices Lower cost and less time-consuming

As a creative professional, you are in full control.

Accessing data and updating content shouldn’t require a constant contact with your IT department or expensive developer hours.

With Buildfire’s intuitive, powerful dashboard, you can easily manage your content, preview any changes you make, manage all functional services, access analytics and user profiles, segment data, and so much more.

You can scale infinitely.

In traditional mobile app development, each new app you want requires an entirely new project, budget, and many months. You will again incur those same infrastructural costs, and you will essentially need to go through the entire process again (and again, if you need even more apps!).

With Buildfire, you can use the same platform to maintain multiple apps. No extra infrastructure or legacy costs, and no support nightmares.

And if you want to replicate an existing app you built on Buildfire? It is as easy as a couple of clicks. A great example of this is creating an event app and wanting to use it for multiple events, or an HR app that you want to use across multiple divisions of your company. The scalability opportunities are endless!

Final Thoughts on App Development Cost

So how much does it cost to make an app? There’s no single answer to this question.

App cost varies based on things like app complexity, the scope of your app idea, app design, app functionality, app development timeline, building on multiple platforms, and more. Are you using an in-house development team or hiring a custom software development company? Are you building Android and iOS apps? Or just an iOS app? Native apps might cost more than a hybrid app. Complex apps cost more than a basic app.

Are you going to hire a project manager for your software development project? How big is your app development team?

There are other factors that must be taken into consideration for your app development cost estimate as well. This goes beyond app development and includes things like new features, in app purchases, app analytics, app marketing to attract app users, app testing, and more. All of this impacts the cost to make an app.

Fortunately, there is no app that can’t be built on Buildfire. Unlike a basic mobile app development company, Buildfire has everything you need to develop an app on your own. 

Whether you’re looking to create a mobile app to improve your business internally, provide a resource for your audience or clients, grow your brand awareness or increase your revenue, Buildfire simply makes more sense from a cost, scalability, and convenience perspective, both immediately and in the long run.

The best thing? You can start building your app today and try our builder completely free. Get creative!

Frequently Asked Questions

1. How much does it cost to develop an app?

The cost of developing an app varies widely depending on factors such as complexity, design, and platform. It can range from a few thousand dollars to over a hundred thousand dollars.

2. What factors influence app development costs?

Factors include app complexity, design, functionality, development timeline, platform choice, and whether you use an in-house team or hire a development company.

3. Can I develop an app on my own?

Yes, platforms like Buildfire allow you to develop apps on your own without needing extensive technical knowledge.

4. What is the difference between native and hybrid apps?

Native apps are built specifically for one platform, while hybrid apps are built to work across multiple platforms, often resulting in lower costs and faster development times.

5. How can I reduce app development costs?

Using platforms like Buildfire, focusing on essential features, and opting for a hybrid app approach can help reduce costs.

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Start building your app today with Buildfire

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