Biggest Hidden Costs Of Developing An App And How To Avoid Them

By Author: Joshua Sequeira
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What is app development?
App development is the process of creating apps that can be used on smartphones and other mobile devices. These apps are used for many purposes. These apps can be used to order food, schedule doctor appointments, and purchase groceries. Research shows that the cost of developing a platform can vary depending on its features.

An iOS app costs around $25k to develop. Android will cost around $23k. App development for Windows will run $18k.

You should know the following types of apps before you start the app development process:

Hybrid AppsThese apps are a mixture of native and web apps.
Native AppsApps can be installed and distributed directly to your device through the app market or store.
Web Apps: Also known by "HTML apps". These apps can be accessed via the web browser from the device.
The 10 Most Expensive Hidden Charges in Mobile App Development
1: Servers – $12,000/year

2: iOS and Android Updates - $10,000/year

3: APIs – $5,000/year

4: Images data - $4,800/year

5: CDN – $3,600/year

6: Data Storage - $3600/year

7: ...
... Push Notifications - $2,400/year

8: App Update Submissions - $2400/year

9: Support, tools and libraries for development - $1,200/year

10: Chat integrations and social media - $1,200/year

Hidden Costs- Classification
Understanding your mobile app architecture is key before you dig deeper into hidden costs.

This information is crucial when searching for vendors or talking with your IT department. You can choose from a single or a bundle package to develop, host, and support your app. You'll be able to see what they offer and what they don't.

For most custom apps, many services must be paid separately. There are four main types.

Functional Services (SMS, Push Notifications, etc.)
Administrative support (to manage users and make updates to your application, etc.
Infrastructure Services (servers, CDN, etc.)
IT Support services (updates for your app, bug fixes etc.
Let's take a closer look at each one to find out what their individual roles are in the cost of your mobile app.

Functional Services
To perform the functions and features of your application, functional services are necessary.

Your developer might provide you with a feature but it won't work unless you subscribed to a delivery service. These services can run hundreds of thousands or even millions of dollars each month and you will need a lot of them.

Here are some examples of common situations:

Push notifications
It is difficult to imagine an app without this vital mobile capability. Push notifications increase app engagement, and encourage users to take the desired action (e.g. purchase). Push services will require a service such as UrbanAirship and PushWoosh. Annual cost: $2,400

Chatting and socializing:
These services are used to encourage others to share and vote for your content on social networks. Applozic or SendBird will allow you to have social interaction with your app. You can use their services for one-to-one, group chat or bot integration. Annual cost: $1,200

SMS:
To integrate SMS messaging into your mobile application, you will need to use Twilio. Annual cost: $500

Email:
To integrate your email with your mobile application, you will need to use a service such as Mailgun or Sendgrid Annual cost: $1,000

Administrative Support
An administration dashboard must be intuitive, powerful, user-friendly, and accessible.

You want to be a creative professional and not have to call IT support every time you need access to or update data.

They are the most challenging to predict as they vary depending on each app. They are just like all app costs and they will continue to be an expense. These expenses cannot be reduced by traditional app development. These expenses cannot be excluded from your app management. This would rob you of all control over content, users, data, and other information.

This is not the only way to make and maintain an application. We will discuss how to reduce these costs.

Administration of content:
Editing the content should be easy. Editing your app content is necessary if you are able to edit Word documents - this is what your dashboard requires.

Dashboard Emulator:
Before releasing any changes to the app, you should make sure they are tested thoroughly. A previewer app is essential.

Management of functional services
It is very inconvenient to have separate dashboards for each service. Your app must have the ability to monitor social behavior, send push notifications, email, and SMS, as well as sending emails and push notifications. All routine tasks for managing these services should be available from one dashboard.

Dynamic Updates
You'll update your app constantly if you're like most app developer. It's just part of the business's nature! For minor changes to content, some apps require a long resubmission process. Include a dynamic update procedure. All content updates are automatically sent to all apps by clicking a button on your app dashboard.

Users Profile
A way to manage your users' profiles is necessary. It is easy to overlook details like password reset forms during the design process. A good designer will never allow this to happen.

Event/analytics collector
To understand the in-app behavior of your users, you will need access to this data. You will need to access the data to understand your users' in-app behavior.

Access Controls
It is unlikely that each administrator or user will be exactly the same. You will need to manage roles and permissions in order to control who has access and what can be changed within the app. You can also control what the users can see and do, including which screens they see or their access to premium content.

Data Segmentation:
Users can be divided into groups according to their activity and profile. This allows you to send push notifications and messages to users based upon which segment they are.

Infrastructure Services
These services include infrastructure components like where the app is located, how it is delivered, and where data is stored. These services require redundant and load balancers to protect backup and security servers. This adds complexity and costs.

Servers
These are the basics - the servers will host the app. If you are not a large company, it is advisable to outsource hosting to companies such as Amazon, Google, or Azure. Annual cost: $12,000

Data storage:
The app will store and collect a lot of data. It is important to understand how and where data will be stored. The annual cost of the data storage is $3,600

CDN:
A content delivery network is a network that contains distributed servers. It delivers content to an application based on the user’s geographical location, origin of the content and the location of a content distribution server. The app will not perform well if it has users around the world and they have to go back to their original location in order to access the content. CDN services are offered by companies like Dyn, CloudFront and CloudFront. The annual cost is $3,000.

Images data:
Most apps make extensive use images. To download, process, crop, and then deliver images, you will need to know where it is. These services are offered by companies like ImageX, Google, CloudImage.io and Google. The annual cost is $4800

Tools, libraries, and support for development:
To develop apps, you can use paid deployment tools. However, you'll need to subscribe for the life of your app. These include IBM, MobileFirst and Kinvey. Annual cost: $1,200 to 100,000+

IT Help Services
These services are not technically part of an app's architecture. They are an important component of app deployments and can lead to high costs.

These are the issues you should be able address with your resources.

Updates for iOS & Android
Both platforms release updates regularly, so each platform needs to be maintained. These updates can sometimes be quite significant. Annual cost: $10,000

Submit your app updates submissions:
Even with a dynamic update process in place, it is possible for updates to need to be submitted again and again. This is more than a technicality. Annual cost is $2,400

API
Most apps, especially those at the enterprise level, interact with multiple third party APIs. API maintenance is required for any changes to these applications. Facebook, for example, updated its API version four times in 2016. The app must be updated to reflect the changes if integrated with Facebook. Annual cost: $5,000

The Bugs
They are present in every app and can go unnoticed for many months, if not years. Apps that take too long to resolve issues reported by users will not be well-received.

The annual cost of development is between 10-20%.

Maintenance costs (Dev Ops).
IT-specific infrastructure maintenance costs are what we're referring to. Servers, data storage and CDN as well as image data, all require some maintenance. Annual cost: 20% to 25% of the total development budget.

How much does it cost to develop an app?
There are many options for mobile apps in different sizes, shapes, colors and functionality. Each of these moving parts has an impact on the cost.

These are the main factors that influence development costs:

Business Model
How to contact customers
Price point of your app
Your revenue-generation strategy
Developer
Freelancer
Small agency
Agency of large size
If you have the skills and knowledge to create an app, DIY
Design
Graphic/Visual Design
Design of user interface and experience
Platform
IOS
Android
Functionality
Table/List
Database
Dynamic
Games
Hidden costs are another matter entirely.
Test your app
Protecting your intellectual property
Market and launch your app
Technical and administrative support
Infrastructure
Maintenance
Developers' hourly rates vary widely based on where they are located. This is the biggest factor that influences the price of an app. If an app is developed in Ukraine, it will cost $9,000 to create and install in the US.

You can save money by working with an Eastern European company to develop your app.

Fig. The cost of developing a mobile app depends on where it is located.

How much will this all cost?
All that matters is the app's complexity, features and human capital (the developers team), as well as its platform.

It all depends on who you ask. There are many options for pricing development projects.

For the same project, different developers may charge you different rates. This isn't an exaggeration.

Kinvey's research shows that organizations spend on average $270k to create an app.

Most organizations take around a year to go from idea to launch. Otreva estimates that a fully-fledged app for business is worth around $130k.

Clutch calculated the cost of developing an iOS app. For low functionality, the cost is $38,000 and for high-spec apps it's $171,000. After speaking with representatives of 12 top mobile development companies, they concluded.

Fig. Cost breakdown for different stages of the development process

OSX Daily estimates that a simple iPad app would cost between $3,000 to 8,000 to develop. An app that is more complicated (typically created by brands) will cost between $50,000 and $150,000.

It all depends on who you ask. You can expect to spend significant amounts of money on your development.

A typical cost won't help you. Each app has its own set of requirements.

Many mobile app development companies have created cost calculators to help them understand this. This calculator will help you determine how much it will cost to develop your app.

How can you avoid paying hidden fees for your mobile app?
Are the above-mentioned costs included in your app development budget. If not, include them in the final budget. These costs could rise as your app becomes more popular.

You don't want to see your expansion continue to increase in cost. Are there ways to cut these costs? It all depends on the number of extra features you need in your app.

The number of components required to develop an app is the main issue. For the life of your app, each component can cost hundreds to thousands of dollars per year.

Many businesses are unable to develop apps. This is a problem that we want to fix. Keep in mind that developers and agencies will only quote app development costs. Other costs, such as development, will be charged at an additional cost and are often hidden.

These strategies will help you avoid these hidden costs as your business grows. Let's take a closer view.

Choose technology that is appropriate for product life span
Your app's success will depend on the technology you choose.

Make sure the infrastructure and technology are capable of supporting high-volume operations in order to expand your business. Scalability and maintenance can be difficult when dealing with large users.

Flexible and robust technologies are essential to scale your app infinitely. React, Native and Flutter are all good options.

Identify the Essential Platform
Are you aiming for your app to be accessible to all users with a smartphone? It is smart to have a broad strategy that covers every market. This technique is not recommended as it can be very expensive.

An iOS app would be a good choice if your target audience is US-based.

It's often best to avoid an all-inclusive approach if you have a tight budget. Before you choose a platform, it is important to do market research.

Do not rely too heavily on third-party tools.
You will need to purchase third-party tools to improve the functionality and usability of your app. You can also subscribe to SaaS platforms.

These tools are not meant to be relied upon. They may claim to be "simple to use," but that doesn't necessarily mean they are.

Even the implementation and testing of SaaS solutions requires planning, programming, as well as testing. You should therefore choose the features that will have the greatest impact on your bottom line. To implement these features, you can subscribe to third-party software.

Conclusion
To be successful, you must convince your customers to spend more. Your app is the best way to do this.

A mobile app development project can be expensive and time-consuming. We hope that you now know the estimated cost of developing an app. Your development team's rate is a major factor in the cost of developing a mobile app. However, there are some hidden costs. In this article, we explain what and why these costs must be paid.

Before signing a contract, discuss these changes with your development team. This will save you money over the long-term and help you plan your expenses better.

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