App Development Costs in the United States in 2023
Whether you are a startup or a well-established business, if you want to digitize and stay competitive in 2023, you will probably need a platform that makes it easier to interact with your customers while showcasing everything you have. And the best way this could be achieved is through mobile applications since accessibility, in this case, is a factor that cannot be ignored. So, when it comes to this, being a CEO or a CTO, the first question you will be going through revolves around mobile app development costs.
Easy as this may sound, let’s not forget that app development cost in United States varies depending on factors including but not limited to the app’s complexity, technologies used, cooperation model, and your development team’s location. So, to give you an idea, supposing an hourly rate of $40 for all specialists, the average app development cost in United States could range anywhere between $30,000 to $60,000 if you are looking for simple app development. About $50,000 to $90,000 for average app development and around $150,000+ for complex app development.
While the average mobile app development cost in United States can be estimated, it’s important to note that it can also vary depending on your specific business needs and requirements. This is where things get a bit tricky. But let’s not worry. If you are thinking of kickstarting your next big project, you have stumbled upon the right door.
Below is a detailed guide offering information on the various factors that can affect app development costs, including hidden costs and finding a cost-effective approach to app development while still ensuring a high-quality outcome.
But before we get into the specifics, here is an overview of the most popular applications in 2022.
A Closer Look at 2022's Most Popular Applications
To better understand what to expect from the ever-changing digital landscape, let’s look at the applications that reached the top charts when it comes to usage.
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Gaming Applications
Starting with gaming applications, these are no doubt the most popular ones, sharing first place along with healthcare applications. According to a report published by Statista, Google Play Services gained a whopping 37.3 billion USD in revenue from gaming applications in 2021. What’s more, with the adoption of blockchain technology and non-fungible tokens (NFTs), the gaming industry is becoming more popular and profitable by the day.
Healthcare Applications
In addition to gaming applications, healthcare applications have gained quite a lot of momentum presently. Since its boom in 2019, the industry has been continuously expanding and shows a promising future in the coming years. A report by Grand View Research records a revenue of 56.8 billion USD for the global mHealth market and predicts an increase of about 63.5 billion USD in 2023.
Finance Applications
Moving forward, finance applications, particularly decentralized applications or dApps, have gained quite a popularity over time and are being used for multiple purposes. For example, asset management, payment, banking, and finance applications. According to statistics shared by Think With Google, the finance applications industry is expected to grow by 115% each year, all thanks to the versatility these applications offer.
Product Delivery Applications
Since the pandemic, there has been a gradual increase in the production and usage of food or grocery delivery applications. Statista accounts for a 67% preference rate for users who prefer using such applications instead of physically visiting a restaurant. Not only this, but such applications work like a charm when it comes to targeting a wider audience, which in this case, is the best to use for restaurant owners or businesses looking to expand their reach.
E-Learning Applications
Last but not least, e-learning applications have also become quite popular lately. Initially developed for educational institutes, these applications are now being used by countless other people looking forward to learning new skills. For example, Business Insider records a 148% monthly increase in Duolingo’s users, a mobile application that allows users to learn different languages.
Curious to know how much will it cost you to develop your next big application? Let’s dig into the details.
Mobile App Development Cost Breakdown by Different Stages
To help you get a better idea of mobile app development costs in the United States, let’s start with a cost breakdown by different stages. Here is a detailed explanation of this development model.
The Discovery Stage
Starting with discovery phase, it is when a business analyst from the development team works closely with the client to ensure that both of them have a clear understanding of the project’s goals and objectives.
It also includes a budget estimation for development based on the client’s specific needs and could cost anywhere between 10% to 15% of the total project cost. Almost every product development company offers this stage, and you could expect to spend around $5000 or less.
The Design Stage
The next stage you will be going through is the design stage. It is one of the three most important stages contributing to your application’s success. An appealing design ultimately increases user engagement and aids in getting new potential users, as the existing ones will share the experience they have had using your application.
To help you estimate the costs involved at this stage, you could expect anywhere between $2000-$10,000 for an application with about 11 to 20 screens. Overall, this stage costs you nearly 15% to 25% of your overall cost.
The Development Stage
Moving forward, the development stage is where you will be spending most of your cost. This stage deals with the coding and deployment of your application’s features and interface. Please keep in mind that the development costs may vary, given the application’s complexity.
For example, a simple application will cost you about $10,000. On the other hand, you can expect anything between $40,000 to $60,000 for an application of medium complexity. Overall, you will be spending about 30% to 60% of your total cost at this stage. But if your application delivers high quality while meeting the user’s need, you can expect a quick ROI.
Testing and Deployment
Last but not least, the testing and deployment stage is essential to ensure that nothing goes wrong with your application when deployed, and avoiding such mistakes could cost you a lot. The amount you will be paying at this stage ranges anywhere between 20% to 30% of your total amount, which is about $3000 to $10,000.
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Breakdown of Mobile App Developments Costs Based on Models
Mobile app development costs in the united states do not confine to one particular model, but you have the privilege of selecting the one that best fits your business needs. What’s more, these models also differ in cost, and above all, it is always better to explore multiple options before you finalize your choice. Curious to know what other cost-based development model you can opt for? Here is a detailed explanation to help you make a better choice.
Building an In-House Team
Starting with building an in-house team, although the process is time-consuming and costly. Still, a considerable ratio of companies prefers building their teams from scratch. However, a thing to keep in mind here is that the hourly rate of app developers varies depending on different regions.
For example, hiring a developer would cost around $20 to $30 in India. In comparison, this cost increases if you are looking to hire in the United States. Let’s just say that, on average, it can vary between $80 to $150 per hour. Not to mention that the cost of in-house development includes factors such as hiring, onboarding, health insurance, and employee benefits.
Outsourcing Your Team
In addition to building an in-house team, the second option you can opt for is outsourcing. This is one of the most widely used app development models. The entire development process is delegated to an agency that manages all aspects, from hiring specialists to determining expenses.
As for the cost, you will be paying for each team member for the complete process. Considering this, the cost you can expect starts roughly at $50,000 and could go as high as $200,000 for the complete project.
Staff Augmentation
Another preferred choice regarding mobile app development costs in the United States is team augmentation. This model deals with hiring development experts from other companies and extending your existing team to build a specific application.
What’s more interesting here is that staff augmentation gives you full control over the development process without going through the hassle of hiring in-house employees. So, when it comes to the factor of cost, you will only be paying the cost for the developer, which can be between $40 to $80 per hour, depending on certain factors.
Augmenting a Dedicated Team
Similar to team augmentation, a dedicated team lets you augment an entire team for your project. With this development model, you have the privilege of creating a whole team without going through the hiring process hassle, excluding costs you would otherwise have to spend when hiring a full-time employee.
What’s more, the dedicated team development model also allows you to effectively create your new team within a couple of weeks compared to the lengthy and time-consuming process you must go through when building a new team from scratch.
You have full control over the project while being able to continuously monitor your augmented team. As for the cost, depending on certain factors such as area of expertise or size of the team, the cost can vary anywhere between $60,000 to $100,000 for the entire project.
Hidden Mobile App Development Costs
Well, the costs mentioned above are not the only ones you will be paying when it comes to developing an application. Certain factors necessitate the integration and use of tools for which you eventually be paying if you intend to ensure maximum productivity from your application. Let’s have a look at them.
Costs for Third-party Integrations
Regarding hidden mobile app development costs, multiple factors fall under this category, and third-party integrations are one of them. Why should you keep this factor under consideration?
Well, most applications require third-party integrations to function adequately. For example, some applications require integration with web services such as booking, payments, ordering, or management tools. In this case, these integrations eventually add up to your final development costs.
Cost for Development Tools
Additionally, to ensure faster development and obtain desired results from your application, you will eventually need some paid development tools. This is where this factor comes into play.
Although most companies already have access to the required tools, there is an equal possibility that some may not. So, you will ultimately end up paying for them. Some common examples of such tools include Kinvey, Appcelerator, and IBM MobileFirst.
Costs Associated with Maintenance & Administration Services
Lastly, once your application goes live, you will need continuous maintenance to ensure a seamless user experience. This requires you to gather and analyze user feedback and work towards making the application more user-friendly and interactive.
Besides this, you will need to update your application to ensure it remains compatible with future software updates and devices. In this case, you will have to pay for the tools and development costs, which unfortunately cannot be avoided.
How Can Appricot IT Consultants Help?
Appricot IT Consultants is an all-in-one technology services hub specializing in various industries. As technology experts, we provide product development services on multiple tech stacks and emerging technologies. These include but are not limited to blockchain, metaverse, and NFTs. We understand how businesses leverage technology from product conceptualization to business operations to foster growth.
We are flexible in our approach and put the requirements of our clients first. What’s more, we also offer top-notch staff augmentation services. In working with us, you get to choose a highly experienced professional team that works tirelessly to ensure optimum results.
Conclusion
Looking forward to developing an application in 2023? It can cost anywhere between $40,000 to $80,000 for an application with low complexity. Moreover, applications with medium and higher complexity can cost around $60,000 to $120,000 and $100,000 to $300,000. Looking for an exact estimate for development costs? Well, no worries, Appricot IT Consultants has got you covered. Get in touch so we can discuss your next big project!