There are a few key points we will need to look at before we can briefly calculate the cost. Let's break it down.
Mobile Application Platform
First and foremost, we will look into the platform we are building. For obvious reasons, most mobile applications will be published to Google Play and the Apple App store; with that said, we will have two choices when developing an application.
We can choose to create it in the native language, Kotlin Java and iOS Swift, or we will be working on a hybrid framework such as Flutter, React Native, etc., that allows us to compile the same code to a different platform. In contrast, it is cheaper to hire one expert than two.
Requirements and Business Logic
The cost of developing an application will be determined by the application's requirements and business logic. To divide it into two major categories:
- Business to consumer (B2C): An application for the business you own.
- Business to business (B2B): Platform applications that allow merchants to register with your company and use it to monetize their digital products or sell goods.
In terms of developing the business logic, B2C is much simpler compared to B2B. There will be only one category of target users, while for B2B, we will need to cater to different roles like the merchant, merchant support, consumer, etc.
For a more straightforward explanation, I will elaborate with an example. Let's say I own a fishing accessories shop. I would like to have a mobile application to list my products for sale. I would also like to show my users basic information about my shop, such as a profile, business hours, address, etc.
So let's list out the things that need to be done for this mobile application:
- Listing/showcase products (CRUD for products)
- Display basic information
- Checkout page
- User mailing details, delivery method, etc
From a developer's perspective, all the requirements above are easy to implement. It only needs time to develop and test. The most precious resource for a technical team is time. By providing sufficient time, a developer can do everything appealingly. So, the cost to develop an application is proportional to the time needed.
Let's go back to the example application. The price for these requirements will usually start from RM15,000 to RM20,000. This is referring to the cost of the bare necessities, not including good optimization and only uses a basic template for UI/UX design. It doesn't cater to a pleasing user experience.
On top of that, it will only be in one code base, meaning that you will only be able to develop that application using a hybrid framework. If you plan to have both native Android and iOS applications, expect the cost of creating the application to double.
On top of everything I have just said, something not listed above also needs to be done. For example, how am I (the fishing accessories shop) updating my product details such as quantity or adding/removing products? Am I doing it through the same application; Or will I need a website to do all these operations.
There will be a cost that is not included in the mobile application. How can a product listing (e-commerce app) come without a search bar?
Now, to make things more interesting, let's talk about a search bar. A search engine can be as easy as matching the exact word being searched or implementing a complex fuzzy search. For example, when you search:
Normal search :
"toaster" will only match the items that have the exact keyword "toaster".
Fuzzy search :
"toastr", "toster" will also match the items that have the keyword "toaster".
Some features are not visible to the user, but it's essential to provide a good user experience. There will be a lot more work to be included to implement a fuzzy search for any application, which inevitably increases the cost of developing an app.
A typical search will cost ranging from RM 5,000 to RM 10,000, while a fuzzy search can easily cost up to RM 100,000 or even higher. We can't imagine Shopee or Lazada having a regular search instead of a fuzzy search.
Hosting
An app can't work on its own without the backend server. Therefore, we will need to host the backend server somewhere. There will be a few approaches to host it:
Traditional server hosting: Charges a fixed amount monthly regardless of whether the server is in use.
- The smallest server, VM, can decently support up to 1000 active users' needs ~RM200 per month
Serverless hosting: Only be charged when it receives a request for processing.
- Within the range of RM10-100, depending on the active usage rate.
Again, serverless can save cost, but the skill set needed is higher, and it's more challenging to manage than traditional server hosting. If you don't have your own IT technical team to do it on your own, you will need to fork out additional money to hire a team or company to manage the servers for you, which will contribute to your overall cost.
Final Takeaway
Developing a mobile application doesn't come at a low price. On the contrary, you will need to spend a substantial amount to have a decent mobile application, safe to say, starting from RM 40,000 and above.
However, suppose you are entering the mobile application industry having an existing client base and a sustainable income, then yes. In that case, that will be a terrific way to expand your business further, getting closer to your users and clients.
Otherwise, go through your idea for the mobile application a couple of times. Then, have more profound thoughts on what you foresee before spending a fortune on it and not getting the return on investment as expected.
