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There's a model for going free -> paid. There's no model for going App V1 -> V2 with payment.

There's nothing stopping you from shipping V2, but keeping the new features locked behind an in-app purchase.

(1) This is difficult. You have to support multiple versions within the same executable. So there is an economic barrier.

(2) And sometimes, it is impossible. An example is supporting new iphonex+ aspect ratios. There's no way post-launch to 'go back' to the old scheme or go forward to the new.

Could you have subsequent versions as individual IAPs, like DLCs for software?

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