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Free iPhone apps may be on the way out


The economics of In-App Purchase
Tumblr lead developer Marco Arment on the new App Store policies on in-app purchases within 3.0.

"Lite" apps may become $0.99 apps that get additional features over time, and more expensive apps may very well get a drop in price and features to take advantage of this new App Store policy.

I can see how this would lead to nightmares as far as consumer satisfaction and expectations are concerned.

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