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This was my initial response as well, and I agree it could be abused by developers.

But I still think there's value in a free app that has paid upgrades, even if Apple has to classify them as "Mixed" instead of Free or Paid.

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I am guessing that the in-app upsell feature will lead to a lot of apps dropping prices to the lowest level possible and using the incremental purchase options to increase revenue based on what the users what to get out of the app and what features they want to enable. It could basically lead to a-la carte feature & content selection for some apps.

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