In an email to iPhone OS app developers today, Apple explained:
In App Purchase is being rapidly adopted by developers in their paid apps. Now you can use In App Purchase in your free apps to sell content, subscriptions, and digital services.
You can also simplify your development by creating a single version of your app that uses In App Purchase to unlock additional functionality, eliminating the need to create Lite versions of your app. Using In App Purchase in your app can also help combat some of the problems of software piracy by allowing you to verify In App Purchases.
Apple invites developers to visit the App Store Resource Center for more details about how they can add In App Purchases to their free apps.
[Thanks to MacDailyNews Reader “Mo” for the heads up.]