How Much Does App Development Cost in Australia? 

How much does app development cost in Australia in 2023? Unfortunately, the answer to this common question isn’t always simple. The problem is that, like most digital products, there are so many variables at play. This can mean app development costs in Australia can be anywhere from $30K right up to (and beyond) $1M. 

We’re going to look at some of these variables and help you understand where you can make some savings and what elements of a development project are absolute essentials. On top of this, not all agencies are handling those million-dollar projects, so there’s more to try and wrap your head around than just the quote — and we’ve tried to fit it all into this guide!

What’s In This Guide?

• App Development Cost Statistics
• The App Development Process ✍️
  • App Planning
  • App Development
  • App Launch and Marketing
• Choosing An App Development Agency 🤔
  • Types of App Development Agency
    • Offshore Agencies
    • Hybrid Agencies
    • Australia-Based Agencies
  • What To Look For In An Agency
  • How To Prepare To Work With An Agency
• How Much Does App Development Cost? 💡
  • Development and Launch Costs
  • Ongoing App Maintenance Costs
  • App Development Cost Examples
• How Long Does App Development Take? ⏱
  • Building A Market-Leading App
  • Building A MVP
• Launch and Beyond
• Getting Started

App Development Cost Statistics

The app market is fast-growing and constantly evolving as new technology is released. Here are some stats that can give you an insight into the market and might explain why some of the information that follows is so important to the app development process.

• The most popular App Store categories for 2022 were games, business and education. – Statista.
• Branded apps provoke more user interaction than boosted or promoted social media posts – DataReportal
• Consumer spending on mobile for Q1 in 2022 amounted to $33 billion. – Statista
• Overall, nearly 4 trillion hours were spent using mobile apps in 2021. –  Data.ai
• Android users are spending 90% of their phone screen time using mobile apps.  – Statista
• 94.2% of iOS apps are free to download. – 42Matters

The App Development Process

Before we get into the details and where the app development costs come in, it’s important to understand what the development process actually involves.

The app development process requires a couple of key steps if you want to create a well-rounded final product that has a good chance of succeeding. These apply whether your app is designed to take the app market by storm or whether it’s an opportunity to revolutionise your internal operations.

We’ll look more at how long the actual development process takes later on, but for now, let’s look into what steps are involved and what you need to do at each stage of the process.

App Planning

Before you dive into the development phase, it’s always wise to do a good amount of planning and research. This will offer insight that is really valuable when it comes to working with a developer.

To begin, you want to get a good idea of exactly where your product will sit in the market and who your ideal users will be. Part of this is understanding who your competitors are and where they are succeeding (and failing). Understanding your market and users makes the later stages much easier and can save you time (and money) in the long run. 

At this phase, it’s really important to identify your USPs (Unique Selling Points) that will set you apart from the rest of the market. The iOS and Android app stores house over 7 million apps, so there’s plenty of competition out there. Making sure your offering is strong (and needed) is a huge factor when it comes to the success of an app.

Part of this planning involves understanding your budget and securing any funding you need. A few options can be explored for financing an app, including government grants and even investment from angel investors or external agencies.

It might be a good idea to find an experienced app development agency at this point because they will be able to give you a good idea of how much funding you will need to secure to create a high-quality app that satisfies the needs of your users. Again, the range here can be huge so it’s important to identify agencies that work on projects of a similar size. (We’ll cover this later.) 

App Development

There are several stages to the development phase; some will overlap with the earlier planning stages of the project. Branding, wireframing, and feature planning especially will require you to work closely with your development agency to ensure the final product meets your expectations and properly shows off just how good your brand is.

This development phase is where your vision comes to life, it is where your development agency will design and build your app, ready for the launch phase that comes next.

The development phase can take some time and may take a couple of versions and revisions to land upon a great final product. The main thing to remember from a cost point of view is that changes take time and therefore cost money. Be upfront with your agency about what you hope to achieve right at the start, and avoid making big changes towards the end of this phase. These can cost you in terms of both time and quality (and sometimes money.)

Application Launch and Marketing

With your app built, debugged and prepared for launch, all that’s left to do is get it live! This part of the process, in theory, should be quite simple, but it can require a lot of work marketing and promoting the app to ensure it reaches your target audience. 

There are lots of cost-effective things you can do to make sure your launch goes to plan. We even wrote a guide all about it!

Choosing An App Development Agency

Now that you know the basic process and where the development phase fits in, it’s time to look at which agencies work for your budget. There are a few key things to understand when it comes to choosing your development agency, but first, you need to understand what type of agency it is that you need.

Some businesses may have internal teams to manage development, but in these scenarios, it may still be a good idea to explore your external options and weigh up which is better for you. Internal teams can have limited experience and already heavy workloads. Developing an app properly requires a diverse skill set and plenty of availability to be able to successfully create a final product in a reasonable time.  

Types of App Development Agency

So, what type of agency do you actually need for app development? You have a number of options available to you.

Offshore Agencies

Offshore agencies are a popular and cheap option. Typically these agencies are based in places like India and Vietnam. This is often because the hourly wage is much lower, and it allows companies to save on development costs accrued by hours worked. In offshore agencies, the average cost for hourly rates will sit at around $30-$50/hour. This would be more like $120/hour in Australia and Central Europe. Currently, US-based developers are demanding the highest average rate at roughly $150 USD /hour.

These savings, to most businesses, sound ideal. The problem is that choosing offshore agencies can make the whole process more complex, and it can, in turn, lead to hidden costs, rounds of bug fixing, longer turnaround times and a weaker final product. Communication can be an issue, not just in terms of a language barrier but also because of the time difference and the impact this has on working hours. These factors can make communicating the final vision tricky and even result in some messy coding that leads to future problems further down the line.

These factors can also mean there are missed opportunities to make your final product even better. Where communication is an issue there are likely to be fewer open back-and-forth discussions. The relationship becomes much more focused on the business giving directions and the developers following them. This relies on you having a fairly sound technical knowledge to be able to effectively communicate all of the necessary details.

Hybrid Agencies

For most businesses, a hybrid agency is the best option. Hybrid agencies work in a sort of middle ground where some key team members such as business analysts, project managers and designers are based locally (that means Australia in our case), whilst others might be based around the world. 

With the impact of COVID-19 and the rise in remote working, this way of operating has become increasingly popular for agencies. At Fuse Mobile, we’ve worked this way for a long time. We like to make the most of the talent and diverse knowledge of professional app developers around the world without complicating communication for the businesses we work with. Our central development team is based in Poland, Eastern Europe, a country considered to house some of the world’s best and most highly educated developers. 

When you choose a hybrid agency, you are finding that balance between affordable and efficient. The locally based members of the team will handle the communication for you, and this simplifies the mobile app development process and removes many of the hurdles you would find using offshore agencies or a team of freelance developers.

Australian Development Agencies

At the other end of the scale, businesses can also choose to use development teams based locally. If you’re based in Australia, you will find that Australian app development companies often work with huge household names, with the average cost of projects starting at $200K and easily reaching the millions. For many businesses, the app development cost in Australia can make working with local agencies impossible. An average Australian iOS developer has an annual salary starting at $125K, with experienced developers easily adding another $50K to that number. For this reason, Australian app development companies need to charge more for projects, and this is why hybrid agencies are often preferred.

What To Look For In An Agency

There are a few things to look for when you’re choosing an agency. These go beyond whether they will work within your budget or not. 

The first consideration is the experience of the team you choose. An expert in software development will have a very different set of cross-functional skills from an agency offering basic web design that outsources app development, for example. These kinds of technical skills will very much determine the final product. 

The problem is knowing what skills an agency has, particularly if you don’t have much knowledge of code or development. The best advice in this scenario is simply to talk to the development team. It’s beneficial for both parties to have open conversations about the app development budget and vision for the product and how it can be achieved. These conversations can also help agencies to better understand the idea you have and the necessary features and give more accurate quotes and roadmaps for the development.

How Can You Prepare To Work With An Agency?

When you have selected an app development agency, there are a couple of things for you to do at the discovery stage and business requirements stages. These simple things make the process much more smooth throughout and can help to avoid questions or misunderstandings further down the line. Most mobile app development agencies will tell you what they need, but you can prepare these two things to help speed up the process during the discovery phase and ensure the mobile app development costs quoted are accurate and are within your app development budget.

Firstly, you should create user stories for your development team. This is where all of that audience research you completed in those early planning stages really comes into its own. User stories demonstrate to your mobile app developers exactly how the final product will provide value to your target users. These stories should not focus on a list of features or design complexity but instead on what that functionality does for your users. They focus on the why rather than the how.

The template that we typically use for this is, “As a [persona], I [want to], [so that]…” This describes your user, their immediate need and the longer-term goal achieved. We’ve gone into much more detail on this here and included some useful examples.

In truth, a single project can have a number of stories, particularly if an app is more complex and has a number of very different users. Don’t be afraid to create a few; they’re really helpful for understanding the project from the perspective of the end-user and can help both the development and launch of the project.

The second consideration is wireframes. Wireframes are simply plans that show how an app will look. An app development partner will never expect you to produce highly technical wireframes. We have experienced designers for that, but it is helpful to have an idea of how you would like the pages to look. From this point, your agency can help to advise you on elements to aid useability or alternatives that benefit your users. 

Wireframes can be as simple (or as complicated) as you like, but typically pencil sketches will be good enough to take to a developer. Simply label your elements ‘menu’ or ‘image’, and that can be enough to help them understand your vision. More technical wireframes and mockups can be created later by the agency. This clarity upfront can save you time and money on the project by reducing revisions and changes.

How Much Does App Development Cost in Australia?

So with all of that covered, what does it cost to get mobile applications developed in Australia? 

The unfortunate answer is that the cost of mobile application development in Australia really depends on the mobile app development project and the type of application. Let’s look at the factors that can drive those prices up.

Development and Launch Costs

For mobile app development with a hybrid agency, you can expect mobile app development costs in Australia to sit somewhere between $30K and $200K. Some with a complexity of features will exceed this. The functionality, complexity and even deadlines can impact the app development cost breakdown. 

The bottom of that cost scale will typically be for app projects described as Minimum Viable Products with basic features. These will be relatively simple apps that contain essential features needed for the app to succeed. These will use less complex systems and typically be limited in functionality and sometimes design. Features at this level might include basic login and profile systems and search functionality.

As you progress up the scale, you will see more integrations with external systems. There are more dynamic features and more intricate, dynamic designs. The upper end of the scale will be complex app development with a rich variety of features. These features might require higher levels of security, like those needed for payment processing or data protection on internal systems.

Most quotes for development will be based on these factors. The app complexity, the amount of development time, and the resources needed for a high-quality final product.

More complex projects will require a broader scope of knowledge from the entire team, so this can increase the price. Similarly, a rush to market will require more developers over a shorter time frame, so this can also push up the costs for a project. 

The Skillsets Required for High-Performing Cross-Functional Teams

At Fuse Mobile, we typically base our quote for a project on the resources required to build the project and the time estimated to complete Version 1. Our cross-functional teams are made up of complementary skillsets of usually five to seven team members across Project Management, User Interface and User Experience design, Quality Assurance testing and a number of Software Developers depending on the project requirements across mobile and front/back-end technologies.

One of the main advantages of working in this agile way is communication. Each member is aligned with the project’s goals and objectives. Working this way helps us to avoid unnecessary meetings, and time can be dedicated to working fully on the project. Team meetings are held every day in the sprint daily but are brief and productive, with each member getting an overview of everyone’s work. This is where any blockers for the team, or the project in general, can be discussed, and recommended solutions can be put forward.

Working in blocks of two to three-week sprints enables our cross-functional teams at Fuse Mobile to mitigate project risk. After each sprint, a working piece of software is tested, demoed and delivered to the client. All feedback can be addressed quickly, therefore enabling the client to feel confident that we are building the project according to their vision.

Ongoing App Maintenance Costs

Ongoing costs involved in the app development cost estimate might include any necessary third-party integrations and software maintenance charges. In instances where you are using secure payment options, you will need to integrate with a payment gateway such as Stripe. Similarly, functionality that relies on push notifications, automated emails or messaging options may require integration at an additional cost. Your mobile app development company will discuss any costs like these with you where they’re essential to the functionality of the app features.

If you have saved money by limiting the number of core features during the initial development phase, you might find that paying for ongoing maintenance and updates for your app is beneficial. After the first release, you will begin to gather feedback from users. This will allow you to adapt to better fulfil their needs. You might discover that some minor functionality is much more popular for this type of application than expected, and this can lead to your planned roadmap evolving and changing to suit your users.

Some of these ongoing maintenance costs may be offset by income generated by the app. Depending on the type of app created, there might be opportunities for monetisation. As it stands, free apps dominate the market, but that doesn’t mean there’s no money to be made. Companies are creative in their monetisation strategies, and subscription models, advertising, and microtransactions have become common, non-intrusive ways for businesses to ensure that any costs are easily covered by profits.

Mobile App Development Cost in Australia Examples

Let’s take a look at a few well-known examples and try to explore where they sit on the pricing scale.

How Much Did It Cost To Develop Tinder?

Tinder is the world’s most popular dating app. No doubt the profit from something its size is enormous — but how much did it take to develop?

Whilst it may seem like a simple concept, there are lots of complex features that contribute to the success of the app. Its location and GPS settings make it relevant, whilst the messaging functionality and push notifications keep people returning to the app. There are third-party integrations and, of course, a good level of security to keep everything secure.

A rough estimate for a project like this and the initial app development cost in Australia would be in the region of $70K+.

How Much Did It Cost To Develop Uber?

Another example that relies heavily on geolocation features is Uber. As one of the most established transport apps on the market, most people will be familiar with its features. 

Not only did the developers for the Uber app need to get the user experience right for ‘riders’ but also for the drivers who needed their own app to make the business model work.

Several key features, including payment, smart routing and push notifications, push up the cost of this app. 

In its most basic form (before lots of the features we now see), price estimates would be in the region of $80K for an app like this. To compete with the market’s newer features, you can expect the costs to be well in excess of this.

How Much Did It Cost To Develop Etsy?

What about marketplace apps like Etsy?

The ongoing app support and app development costs in Australia for a site like Etsy can really start to add up, but basic marketplace features can be really doable for startups.

Marketplace sites need to accommodate sellers as well as buyers and offer a good amount of payment protection to maintain the trust of customers. 

They’re more complex than a standard e-commerce site and therefore will require more development hours and additional features, pushing that app development cost up.

You might be able to get away with a very simple marketplace app for around $50K, but to begin to compete in the market, these app development costs in Australia will likely sit between $100K and $200K.

App Development Cost in Australia Table

Whilst there is no concrete way to categorise app costs, you can get a general idea of the scale of your project. For accurate quotes, you should speak to an app developer to get an idea of how much work might be involved in the project.

Here is an approximate estimate of app development cost in Australia and a timeframe broken down into three broad categories:

Any professional and high-performing app development agency will request that you provide as much information and supporting documentation as possible. This is normal and helps us to understand the app development cost and provide an accurate quote. At Fuse Mobile, we are meticulous during the planning stage. We request a workshop to discuss the user stories and app concept in detail. This helps us to understand the project more fully and the roles of each user in the application, and only then can we start to prioritise what’s important for the first version of the app.

The next table gives an example of the different types of apps, the app development cost in Australia, and the typical number of project hours during the development process.

How Long Does App Development Take?

In the same sense as the pricing predicament, it can be really tough to pinpoint an exact timeframe for a development project. 

A smaller, simple project like an MVP may take four to six weeks to complete. A complex, feature-rich version may take upwards of six to eight months. 

The best way to get a good understanding of just how long development will take is to discuss expectations in the very early stages. Of course, some things might change, but an experienced development team will be really well-equipped to accurately predict timescales if all of the necessary information is given in the first instance and there aren’t too many unknowns and changes along the way.

At Fuse Mobile, we will typically aim for between four and six months for a mid-sized app where there are few complex features. During this time, our local team (based in Sydney, Australia) will work with our development team in Poland to ensure everything is running smoothly and that the project is being completed to a high standard. After this first release, there are typically additional releases as part of the ongoing app maintenance and continued development.

The Launch and Beyond

When an app is developed and ready to go, the next part of the process is the launch. It’s time to unveil the final product to your users. 

This is an exciting part of the process and requires a lot of strategizing and time to make sure the rollout reaches all of the right people.

For most apps, paid advertising and influencer marketing are popular ways to reach a large audience quickly, but the costs can quickly add up. To save some money for future development work, there are a few free marketing options you can try.

Social media is a useful way to build up a community where you can share updates and gather vital feedback. There are so many channels available that you can pick and choose those that best reflect your audiences — you don’t need to use them all!

For utility apps and those that cater to a specific need, content marketing might be a great option. Prove your expertise with blogs, videos and graphics that prove that your app is an essential download.

The most important part in these early stages is to listen to user feedback. Use that vital information to improve your final product. The best apps on the market are those that consistently evolve and become better.

Getting Started?

Looking to get a better idea of what your app development might cost? Our experienced team is always happy to discuss your options and point you in the right direction.