A focused App MVP for iOS and Android from Novamedia starts at 160 hours, or ISK 2,860,800 excluding VAT at our hourly rate of ISK 17,880. That figure applies to a first release that does one important job well, with a shared codebase for both platforms and a lean backend. Apps with payments, sensitive data, several integrations or offline functionality are larger projects, and their scope is set through discovery.
App cost is rarely driven by the number of screens. It is driven by what happens behind them: user accounts, data, connections to other systems, notifications and operations after launch. This article walks through the main cost drivers, how to scope a first release and what it takes to keep an app running.
What a first release includes
A first release should prove value, not contain everything the app might one day do. At around 160 hours a project can include discovery, UX/UI design, a shared iOS and Android codebase, a lean backend, testing and support with publishing to the App Store and Google Play.
A shared codebase, for example in React Native or Flutter, means the same code runs on both platforms. That saves a great deal of work compared with building two separate apps and suits most business apps. Native development can be the better choice when the app depends heavily on specialized device features or needs maximum performance.
What has the greatest effect on cost
- Whether a backend and APIs already exist. If the app talks to a system with a good API, a lot of work is saved. If the backend has to be built from scratch, it is often a bigger part of the project than the app itself.
- Login and permissions. Simple sign-in is fairly predictable, but multiple user roles, national electronic ID or access to other users' data require more design and testing.
- Payments. Selling digital content inside an app is subject to Apple and Google rules, while payment for physical goods or services usually goes through a payment gateway. Both need thorough testing.
- Sensitive data. Health, financial or personal data calls for careful access control, encryption and clear handling in line with GDPR.
- Device features. Camera, location and push notifications are common and well supported, but each adds work, permission prompts and testing on real devices.
- Offline functionality. Making an app work without a connection and sync later is one of the hardest things you can ask for, because conflicts have to be resolved when the same data changes in two places.
- Integrations with accounting, CRM or specialist systems. Every connection has its own quirks and needs monitoring once it is live.
Illustrative orders of magnitude
The examples below are calculated purely from the hourly rate to show scale. They are not quotes, and the real scope is set through discovery.
- An app that connects to a system with an existing API and handles one clear task, such as booking or ordering, can sit close to the starting point, around 160 to 200 hours, or roughly ISK 2.9 to 3.6 million excluding VAT.
- A staff app with login, camera, location and a new backend might fall between 240 and 320 hours, or roughly ISK 4.3 to 5.7 million excluding VAT.
- An app with payments, offline support and several integrations is beyond general benchmarks and needs discovery before a realistic figure can be given.
Publishing to the App Store and Google Play
Apple and Google review apps before they are published and have requirements around privacy disclosures, permission prompts, login and content. Apps are sometimes sent back with comments, and while these are usually easy to address, they can delay launch. It is sensible to build review time into the schedule. It is also advisable for the business to hold its own developer accounts with Apple and Google so the app is published under its own name.
Novamedia has designed, published and still operates its own apps, Spjallbox and Tímabox, on iOS and Android. The path from code and testing to store approval and post-launch operations is one we know first-hand.
Do you need an app at all
It is worth asking before you invest. If users visit rarely and do not need notifications, the camera or offline access, a well-built web application can do the same job for less money and without store review. Sometimes an existing product solves the problem: Tímabox is time tracking with apps for iPhone and Android, and Spjallbox is a helpdesk with apps for staff. An app earns its cost when the same user returns often, when notifications matter, or when the app needs access to the phone's hardware.
Operations begin when the app launches
Apple and Google update their operating systems and policies regularly, and an app nobody looks after gradually stops working as intended or meeting store requirements. Apps need crash monitoring, new releases and improvements based on real usage. Novamedia's Priority operations plan costs ISK 119,000 per month excluding VAT and is meant for systems the business depends on, and for apps. It includes App Store and Google Play release management, response within 4 hours during business hours and 4 hours a month for fixes.
New features go on the hourly rate or on a monthly hours plan of 10, 20 or 40 hours. You can also buy the app as a 24-month partnership, where development, releases and improvements are planned together from the start.
Common questions
Can we launch on one platform first? Yes, but with a shared codebase the extra cost of the second platform is usually modest, so launching on both at once tends to make more sense.
Who owns the app? Data and content always belong to the client. Code handover and ownership are defined in the contract before the project begins.
Can we start without a complete specification? Yes. Discovery is designed for projects where the problem is known but the right solution or scope is not yet clear.
How to get started
Before you ask anyone for a quote, it helps to have clear answers to a few questions.
- Describe in one sentence which job the app should do, and for whom.
- List the systems the app needs to talk to and check whether they have an API.
- Mark which features are essential for the first release and which can wait.
- Decide how success will be measured, for example by number of orders or staff time saved.
- Think about who will look after the app after launch and what response time the business needs.
With that in hand, Discovery and planning is a natural first step. It costs a fixed ISK 214,560 for 12 hours and delivers prioritized recommendations, an indicative scope, phases and a cost estimate before you invest in a build.