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This is great for customers.

I wonder if and how having that popup appear will affect people upgrading to the latest and greatest.

Presumably, you'd only see the pop-up if you're running a non-current version of iOS (and need the previous version of the app)?

Correct, what I'm wondering about is how this popup will drive people to realize that "hey, I can upgrade to a new version of iOS".

iOS already has a pretty fast adoption rate for new versions, I wonder if this will make it even better.