How much does it cost to develop an iPhone application?

We started the iPad development from scratch, but a lot of our underlying code (mostly models) was re-used. The development was done by two experienced iOS developers.

With such a short schedule, we worked some pretty long hours. Let’s be conservative and say it’s 10 hours per day for 6 days a week. That 60 hours for 9 weeks gives us 540 hours. With two developers, that’s pretty close to 1,100 hours. Our rate for clients is $150 per hour giving $165,000 just for new code. Remember also that we were reusing a bunch existing code: I’m going to lowball the value of that code at $35,000 giving a total development cost of $200,000

Yup, and people still demand it for a buck.