Cipher Media

Apple has emailed developers to inform them that they have lifted the ban on in-app-purchases from free apps. Apple had previously barred suppliers of free iPhone applications from upselling content. According to Apple, in-app-purchase has been rapidly adopted by developers in their paid apps. Now they are allowing developers to use in-app-purchases for free apps.

In an email, Apple mentioned that “In App Purchase is being rapidly adopted by developers in their paid apps,” “Now, developers can use In App Purchase in their free apps to sell content, subscriptions, and digital services.”

Apple’s policy shift is expected to benefit magazines and newspapers that can give away iPhone or iPod Touch programs featuring basic content and then sell premium articles piecemeal or by subscription.

Developers will need to pay attention to their consumer by developing a pricing strategy that carefull examines and communicates the value proposition of the app’s premium features. In addition, it will be important for them to clearly indentify what is free and what content will need additional payment to effectively manage consumer expectations.

In-app-purchase will be subject to Apple’s same payment and pricing models, with Apple receiving their 30%.