iPhone App Store (Paid App) - Promo Codes / Updates

Question

I have a few specific questions concerning paid applications in the App Store, along with promo codes and updates. I've done my research, but I either haven't found answers, or have found very outdated "I think this is how it works..." answers.

1. I issue a promo code for version 1.0.0 of a $0.99 app, so the customer gets it for free. When that customer updates to version 1.0.1, will he have to pay? (Does it matter if he updates before the 4-week expiration date of the promo code?)
2. I release an app that's "free for a limited time," at version 1.0.0. For version 1.0.1, I change the price to $0.99. New customers obviously pay the $0.99, but what about the customers who purchased within the "limited time" window? Do they have to pay when upgrading?
3. I've heard rumors that the answer to the above question is "Yes, existing customers have to pay when upgrading" only if it is a major version change. Eg. The customer got 1.2.0 for free, and will get the 1.3.0 update for free and 1.4.0 update for free, but will have to pay for the 2.0.0 update.

Thanks!

Answer 1

1. No, the user doesn't have to pay for an update. Redeeming a promo code is exactly like buying the app.

2. "Limited time" price offers on the App Store are just marketing words, they have no technical effect. No one ever has to pay when updating to a later version of the same app.

3. No, users never, ever have to pay for an update of an existing app. A few companies have decided that when they come out with a major upgrade they abandon the previous app and literally come out with a new app. This means that the customers who paid for the previous app have no upgrade path and would have to buy the new app for the full price. Without noting whether or not I think this is a good or fair decision on the part of the developer, a lot of existing users end up pretty unhappy with the discontinuation of updates to the old app.

To sum up the key point: updates to apps are always, always free, no matter what version you bought or how you paid for it (including redeeming a promo code).

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As a matter of opinion, this fact is unfortunate. If developers could charge for updates then users would be able to choose whether or not to accept the update. If they did pay for the update, the data from the old version would continue to work just fine in the new version. A major problem with the scenario I outlined in #3, where the developer abandons the old app and the "update" is really an all new app submitted to the store is that data on the device is associated with the unique app identifier it was created with, making it difficult or impossible to transfer to the new version (depending on how the developer handles it).

The ability to offer time- or use-limited free trials and to charge for updates would allow for pricing plans that would usually be much better for consumers while making it better for developers, too.

Answer 2

Although updates are free, and there does not appear to be a vehicle in iTunes Connect to have a developer charge for them, you can do it on a subscription basis. So, you could sell an annual subscription. Another possibility is to add some code in your app to store the app version number in NSUserDefaults, then you can check to see if the current version matches the last version launched - and if so, then do an In-App Purchase. Frankly, I don't think it's fair to have forever-free updates. Maybe that should be left up to the developer to decide - they could allow 3 free updates, then have to pay every 3rd, etc. But allowing us to come up with a policy means we can not only create a renewing revenue stream, but it translates the value the customer gets into support for ongoing development.

For now, I'd say you have to program in some In-App Purchase scheme.