For What Reasons is App Development Quite Expensive?

App Development

Shelling out more than thousands of dollars, say approximately C$ 35,000 to C$ 55,000, for developing a mobile app; may not be much of an issue for a large organization. However, when it comes to the case of a small or medium sized company, or a start-up with limited capital and finances, shelling out that amount of money is a big no.

Given that there are around 8.93 million mobile apps out there in existence, it can seem quite surprising that developing a mobile app is quite expensive. However, skilled app developers are scarce. Thus, the complexity of creating a robust, well functioning mobile app serves as a mechanism of raising the hourly rates app developers earn.

Other than that, specific benchmarks are present for project costs of mobile app development. They have wide ranges. For example, it can take around C$ 42,000 to C$ 50,000 for development of a small app. However, a complex enterprise level app would take C$ 125,000 (at least) for development.

Other than that, most organizations forget considering app maintenance costs costing them around 20 percent of their actual app making expenses.

Even if organizations are quite financially established looking to create a niche app, they can see that the costs for this kind of app are more than high, higher than what they would initially estimate.

For What Reasons Mobile App Development Has Become Expensive?

Senior level professionals from a mobile app development firm based in Brampton have created a small guide to why such a phenomenon is happening and how organizations can avoid spending excessively on mobile app development:

App Support for Multiple Platforms is Necessary

The number of smartphone users on the planet is approximately 3.6 billion. Moreover, American consumers spent around 88 percent of their time on mobile apps. It is hence apparent that companies would want to have access to the screens of their target audience.

However, the mobile usage market share comprises Android, iOS, and Microsoft users. That means mobile apps cannot just be designed for only iOS and Android, they need to be made for multiple platforms (Android, iOS and Microsoft).

With that being said, multiple versions of each platform exist and are being used by customers in different parts of the globe. Companies hence need to have an app that looks and behaves identically on all versions of each platform in existence. This hence raises the time and cost of mobile app development.

High Demand for Mobile App Developers

With around 87 percent of smartphone users keeping their devices by their side throughout the day, developing a mobile app is a requirement for organizations wishing to be observed in the audience’s sights and be remembered among many.

The boom of mobile apps has given rise to new concepts like on-demand models, mobile-first design and launching with just an app for creating traction.

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Small wonder that the demand for app development services providers willing to create top-notch apps is exceptionally high, driving up the fees that these developers charge.

Pressures Faced to Add High-End Features in Apps

Depending on the kind of category the mobile app falls into, there are several features that consumers will expect as the bare minimum. Push notifications, social media integrations, payment channels, emals and the like; they all require subscriptions to delivery services that can cost around several hundred dollars a month.

Plus, if an organization sells products or offers subscriptions through the app, for instance, Google Play Store will charge a certain percentage as a transaction fee, something they need to factor into their costs as well.

Hourly Rates of App Development are Rising Sharply

Once upon a time, no company had an in-house app development team. Now, around half of the present organizations today have a dedicated team. However, most usually outsourced the work to developers and development firms who are paid for their services, and work hard to make an app out of numerous app ideas present.

The app cost can then boil down to the development team’s hourly rate which is multiplied by the number of hours the project takes.

This hourly rate can differ greatly depending on where the developer is based. Europe may have a higher hourly rate than North America but keeping these operations in Asia can raise other costs up and can also cause other issues.

Keeping half the task in the home country and the other in nearby nations is known as nearshoring, and it is working. However, for the sake of national economic and technological interest, apps are now developed in home nations and are seldom outsourced.

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