Cost of App Development : Factors To Consider

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Cost of app development and related factors to consider before you create a new app on mobile

A majority of mobile apps are free to install, as they allure end users. But it’s free for users only, and not the Mobile app development companies that develop them. Behind great apps, an entire team with skilled human resource is working hard, day and night, which of course is not free. It even requires excellent planning and an extraordinary ecosystem.

The actual cost of apps varies depending upon a few factors and market conditions. And even the type of app is included.

Roughly, a software development company spends around $6500 to develop an app that has bare minimum features. It includes salaries of those people working in the team to develop that app. From developers to designers, testers and technical writers, a whole team is involved in developing an app.

The cost of mobile app development goes much higher for cross platform mobile apps since there are many factors to be considered. 
So next time when you see that FREE app sign, do remember a lot of effort is put in.

Let’s now look at the factors to be considered while deciding the cost of an application:

Tips For Product Based Companies

Initiating ideas 

Here’s the first part. This is not easy. For initiating an idea, different startup programs are organized by the company. Stayed limited to ideas given by the existing workforce doesn’t seem to be working always. Getting fresh ideas from the outside world doesn’t cost them a fortune but, this is the start.


It’s not just the human resources companies rely on. Other resources needed to develop an app and for the long run are also needed. Since product based companies don’t have to meet deadlines, hiring less experienced developers can get the job done but in more time. Most importantly, app development companies need not send their developers on-site to develop apps since there are no clients involved.

Thorough Testing 

To make sure an app is functioning perfectly; it undergoes rigorous phases of testing. An entire team of skilled testers works on it. If an app fails in any case, the testers are held liable for not finding that specific loophole. An app is never 100% perfect but testers make sure it is 99% perfect with no loopholes left. 
For best results, developers release a beta version for end users so that they can use the app and identify any bugs left out before its final release. A beta program can offer benefits to some end users. It all depends upon how big the app development company is. If they can afford it, they surely make their users rich.

Platforms & Devices

 If a product based company develops an app on one platform, it gets mandatory to develop on other platforms as well, since this is how they can make more money and get successful. But to do this, it first needs to hire relevant developers. Currently, iOS and Android are the most prominent platforms in the mobile world. Developing an app on both of them is not easy. 
While iOS has a lot of restrictions but fixed screen sizes for few models, Android is completely open source but has around 17,000 devices and screens. Android developers have to face the challenge of developing apps that can work perfectly on all these 17,000 devices. Testing them on all of these devices becomes a challenge too.


Regular updates is the most important factor that can decide the cost of an app. In the first phase itself, further improvements are decided too. And these improvements are made in further versions of the app. Regularly releasing updates and fixing bugs creates a positive impact on end users. Here, no client is involved. So updating is done keeping in mind the needs of an end user.

Tips For Client Based Companies / Service Companies


Deciding the cost in this case is easy since the requirements are all given by the client. So, researching is done accordingly. This is the initial stage of app development in client based companies. Taking care of needs of end users is all dependent on the client. So just a short research is done by conducting random surveys to get a final blueprint of the requirements to be injected in the development of the app.

Human resources 

Now that cost of research is decided, next is human resources. Having skilled developers can make the app perfect and quickly be developed. But the cost incurred can be high. Client based companies decide the cost of an app keeping in mind the number of labors they have. And then they send a final quotation to the client. Hiring skilled and experienced labor makes a huge difference. They pool in quality and guarantee to the application. An app can be built either by in-house developers or done offshore. Offshore development is very expensive. So if a company can afford to pay more in offshore development, they should definitely go for it. In-house development isn’t a bad choice too. These developers can be afforded for an app. The best option would be to go on for a blend of resources. Having experienced and fresh developers can help in fetching innovative ideas and they can be used in developing the app.


Depending upon the client’s requirements, a testing team is decided. If the project is a major one, testing tools can probably be needed to test the app and as a result, the cost is more. The success of the app is based on client satisfaction. So testing is continuously done until the client is satisfied.

Maintenance: Once an app is built and delivered to the client, that’s not the end. Timely updates and maintenance is required. The client may ask for a new feature or any other update.

Depending upon the product and market, cost of an app is decided. Product based and client based companies have different costs to build an app. While a product based company’s success is solely dependent on the app, a client based company works according to the client’s needs. So its success depends on the client.

Article Updates

  • Updated On Oct 2016: Updated links and fixed minor formatting issues.

Arpit Khandelwal is Marketing Manager at Reliant Tekk, a well-known iPhone Application Development Company and offer advance software solutions globally. Arpit love to provide technical updates and solutions to users which help them to understand ongoing updates in iPhone, Android world. Follow Reliant Tekk on Facebook.

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