Mobile App Development Business

How Profitable Is A Mobile App Development Business? (Updated for 2024)

Pat Walls

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Updated: October 9th, 2024

How Profitable Is A Mobile App Development Business? (Updated for 2024)

So you want to start a mobile app development business?

And the first question that came to your mind was, “well, are mobile app development businesses actually profitable?”

With a market size of $154B - there’s plenty of business to go around.

Especially considering:

You could start a mobile app development business with as low as $100
Based on our data, mobile app development businesses generate an average of $1.66M per year
You could see gross margins as high as 24% with mobile app development businesses

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a mobile app development business.

Let’s dive in!

Is a mobile app development business profitable?

Yes, a mobile app development business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.66M per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your mobile app development business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your mobile app development business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a mobile app development business worth it?

If you’re wondering if a mobile app development business is worth it, the answer is a big YES. With mobile app development businesses, you have the potential to earn $1.66M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $154B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a mobile app development business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful mobile app development businesses case studies.

Examples Of Profitable Mobile App Development Businesses

Here are a few examples of profitable mobile app development businesses, and a few more details about them:

1. The Jed Mahonis Group ($960K/year)

Tim Bornholdt, co-founder of The Jed Mahonis Group, came up with the idea to start a custom iOS and Android app development consultancy after realizing the potential of the App Store. With a passion for technology and a friend who believed in the business, they started the company with just $250 each and have since grown it into a nearly seven-figure a year agency working with clients such as Great Clips and Profile by Sanford Health.

Is it profitable? Yes
How much money it makes: $960K/year
How much did it cost to start: $500

How We Started A $82K/Month Custom iOS And Android Apps Development Agency

"We started a custom iOS and Android app development consultancy that now makes nearly seven-figures a year by landing clients like Great Clips and the USA CUP after building successful concept apps."

Read this case study

Read by 10,896 founders

2. Balsamiq ($6.6M/year)

Balsamiq Wireframes, a low-fidelity wireframing tool, was founded by Giacomo "Peldi" Guilizzoni in 2008. The idea for the tool came from Peldi's experience working at Adobe, where he realized the need for a simple sketching tool that could be used by any contributor in product meetings. With a focus on constant learning and improvement, Balsamiq has grown into a team of 33 people with a monthly revenue of about $550,000.

Is it profitable? Yes
How much money it makes: $6.6M/year

How We Started A $550K/Month Wireframing Software Company

How Balsamiq became a $550k/month company through staying focused on simplicity and taking care of their team and community.

Read this case study

Read by 6,210 founders

3. Aun Digital ($240K/year)

When a friend's cleaning business couldn't afford a website, Aun Ali discovered that many UAE startups faced similar challenges, inspiring him to launch Aun Digital. The firm offers affordable, comprehensive digital services and now generates annual revenue between $200,000 and $300,000, serving 20 regular clients.

Is it profitable? Yes
What's the gross margin? 24%
How much money it makes: $240K/year
How much did it cost to start: $60K

How I Scaled My Web Design Agency To $250K/Year

Aun Digital, a UAE-based web design company, generated $200,000 to $300,000 annually by offering affordable and reliable digital services to small businesses, startups, and medium-sized enterprises, with 20 regular clients per year and an average project cost ranging from $10,000 to $15,000.

Read this case study

Read by 777 founders

Learn more about starting a mobile app development business:

Where to start?

-> Mobile app development business plan
-> How to finance a mobile app development business?
-> How much does it cost to start a mobile app development business?
-> Pros and cons of a mobile app development business

Need inspiration?

-> Other mobile app development business success stories
-> Mobile app development business Instagram bios

Other resources

-> Mobile app development business tips
-> Blog post ideas for a mobile app development business

How much can you make with a mobile app development business?

With a mobile app development business, you can make an average of $1.66M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a mobile app development business make a week?

Based on our data, average weekly revenue for a mobile app development business ranges around $34.5K. As such, you could see monthly revenues of $138K.

To know if your mobile app development business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your mobile app development business.

How much do mobile app development businesses owners make?

The income of a mobile app development business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established mobile app development business is about $34.5K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a mobile app development business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Mobile App Development Business Profit Margins

Generally speaking, a mobile app development business can expect profit margin of around 83%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a mobile app development business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, mobile app development business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, mobile app development business owners can ensure long-term sustainability and profitability for their business.

Mobile app development business owner salary

The salary of a mobile app development business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established mobile app development business, in a prime position, might see an average weekly salary around the ballpark of $28.7K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a mobile app development business may be a promising business to start - but the success of your mobile app development business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable mobile app development business.

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Starting A Mobile App Development Business: Everything You Need To Know

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