Mobile applications become indispensable in everyday life. Therefore, it is not surprising that the development of mobile applications is one of the most profitable companies. Due to various economic factors, development costs for cellular applications are slowly but surely falling.
In 2018, the price of mobile applications will drop by 80%. This decline can be estimated by analyzing cellular market data and business development from two US and European mobile application companies: Shoutem Builder and Five Agency.
Four factors impact on reduced mobile development costs: the use of SDKs based on custom development, global market competition, web developer frameworks, and support automation, and lighter development tasks.
SDK is a trend in application development
We continue to see the same model in practice. For example, the Web Summit / Collision application uses a Layer SDK for sending messages between conference participants. Integrating, customizing, and establishing the UI as an integral part of the conference application, which usually takes months to develop, only takes a few days.
It makes sense that the list of SDKs used in our application is getting day by day. Analytics (Google, Flurry SDK), Push Notification (Parse, Urban Airship), Customer Communication (Intercom), and Deep Links (Branch.io) are just a few.
Special code for SDK
The development of cell phones was fully adapted until a few years ago when the SDK began to develop. At present, 20% of all application development is carried out with the support of development kits or builders. In the future, we hope that most applications will become frameworks and SDKs. Up to 80% of our applications are made using the SDK, and every effort is invested in designing the user interface and working on functionality, customization, and innovation.
Of course, creating applications require less time, and the average time spent on the entire development process is also reduced. A few years ago, it took us six months to complete the first version of the application we made for the e-commerce giant. Today, this complexity application will be made in two or three months. Also, the production time for MVP applications will decrease less than a month in the next few years. Also, this application will be much more stable, have a better user interface, and maintenance costs will be much lower in the long run. In this way, they will be much better overall and lead us to the next point.
High-quality world-class competition
The topic “Reasons for High Prices for Application Development” highlights the big difference between the highest hourly rates for mobile applications in the US ($ 250) and Indonesia ($ 20). Eastern European developers are slightly more expensive than developers in Indonesia. They charge an average of $ 40 per hour, which is still much cheaper than an average of US $ 140 per hour.
Hourly application development rate.
Estimated prices are based on reported averages. The truth is, working with offshore companies in Europe or Asia is much better if you are looking for a mobile application development Company. Their development, UX / UI, business problem-solving skills, and project management are all at the same level, if not better than in US companies.
“Working with offshore companies in Europe or Asia is much better if you are looking for a mobile application development agency.”
There is a reason for this: The agency ecosystem in the US is not desirable. Anyone good, wants to start and is rich in stock options. If not, they want to work for Facebook or Google and take full advantage of working for large companies with limited budgets (such as a slow work environment and a large salary). Business agencies are tense and stressful and there is no immediate satisfaction that motivates employees for a long time. Development agents in the United States have difficulty recruiting below-average developers who leave the company after six to twelve months.
In Europe and Asia, the technology world is far less developed and US-based global customer agents are usually the best companies, easily attracting and retaining the best talent. Profit margins are high enough for companies to pay their employees the highest salary and work under adequate pressure. In short, working with a mobile developer shop in Europe costs you less and you get better quality work from all over the US. I just said.
Framework for web developers
React Native and Native Script has made a lot of steam lately. Individual developers have discussed this technology a lot (for example in this media publication). One of the main reasons for the success of this framework is that they use native user libraries to present a user interface with their implementation that looks and feels like home. This gives thousands of web developers, who are familiar with JavaScript and CSS, many opportunities, and allows them to create cross-platform and high-class applications. Since late 2015, interest in React Native has increased, while the relative search volume for iOS and Android development has stagnated.
The same thing happened 15 years ago when UI tools using native Windows libraries, Linux or UNIX greatly facilitated multi-platform development and allowed for a natural appearance on any platform. There are many similarities with the features offered by React Native on the table.
Most manual costs for long-term application support are automatic
Extraordinary efforts and large budgets are needed to maintain compatibility with fast-growing ecosystems. Things like SDK updates, UI design updates, and App Store and Google Play binary contributions now require a lot of effort and valuable resources. However, after one or two years, many maintenance processes will be automated. In this way, developers can apply their knowledge and efforts to the most important place: innovation.
What was troublesome between developers and investors, who usually set budgets for application development but often don’t budget for long-term application support, has recently been made easier by automating the support process.
“But in one or two years, many maintenance processes will be automated, allowing developers to increase their knowledge and efforts to the place that matters most: innovation.”
Because of all these factors, we must see that the costs of a typical application development project are halved in the short term (1-2 years) and even more than the five-year framework. The current price for developing a mobile application can only be between 50,000 and 500,000 US dollars for the original version. If you calculate maintenance and improvement costs over two years, you will need a budget of $ 200,000 to $ 1,000,000. Over the next few years, these prices will likely decline, and we may see prices ranging from $ 15,000 to $ 20,000 for basic applications completed in a month, and between $ 100,000 and $ 200,000 for more complex applications with more production cycles longer.
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