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

Pat Walls

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Updated: September 20th, 2023

Start A Mobile App Development Business

So you want to start a mobile app development business?

And the first question that came to your mind was, “Well, is a mobile app development business profitable?”

With a market size of $154B there’s plenty of business to go around. Especially considering the initial investment is $7.5K and potential revenue is $950K per year with gross margins being 83%.

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 one. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since your potential revenue is $950K per year with a gross margin of 83%, you can recover your investment within 12 months or even less.

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 within 12 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 these types of businesses, you can earn as much as $950K per year.

Further, you can have your initial investment of $7.5K back within 12 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 enjoy a monthly revenue of $65.7K. As such, it’s the type of business you should 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 12 months before your actual gains, this business is worth it.

You might even need to get some financing to launch such a business. We have a guide exactly for you on how to finance a mobile app development business.

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
-> Examples of established mobile app development business
-> 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 in a mobile app development business?

With a mobile app development business, you can make as much as $950K per year since it has a gross margin of 83%.

All you need is an initial investment of $7.5K. Then, with proper knowledge and sustained effort, you can have the ROI (or return of investment) within 12 months.

Generally, a mobile app development business can offer you a monthly profit of $65.7K since you’re catering to a market size of $154B. But, of course, this size varies depending on your area of choice.

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

The weekly profit for a mobile app development business ranges around $16.4K. As such, you can enjoy a monthly profit of $65.7K.

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 does a mobile app development business owner 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 salary of the owner of an established mobile app development business is about $16.4K. But it can also be 80% 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, mobile app development business makes a 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 $16.4K.

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, a mobile app development business is quite promising if you plan on starting such. With a market size of $154B, you can enjoy a potential revenue of around $950K per year with a gross margin of 83%.

Considering this information, you can enjoy a return of investment within 12 months, especially if you have a monthly profit of $65.7K. Overall, the success of your mobile app development business also depends on your effort and knowledge about it. If you persevere with these things, you can ensure that this mobile app development business is profitable.

Make sure you have a proper mobile app development business plan and know how to get clients for your mobile app development business.

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

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