Apple extends in-app purchases to free iPhone apps

Apple said it will extend in-app microtransactions to free iPhone and iPod touch applications, enabling developers to sell content, subscriptions and digital services without requiring consumers to spend any money upfront. In an email sent Thursday to registered iPhone developers, Apple said in-app purchase options are now available for all software in its App Store: "You can also simplify your development by creating a single version of your app that uses In App Purchase to unlock additional functionality, eliminating the need to create Lite versions of your app," the email reads.

Apple introduced in-app microstransactions for premium apps in March--developers can market new levels in an iPhone game, additional chapters or books in an ebook app or new tools in productivity apps. However, that meant pricing apps at a minimum of 99 cents. The revised policy should make it easier for developers to build profitable businesses out of free applications, and also promises to clean up the App Store by making Lite apps redundant.

For more on the revised App Store policy:
- read this Wall Street Journal article

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