Comment Re:someone, please explain this to me (Score 1) 566
There are a lot of free Apps that have extensive revenue streams for both the developer and Apple.
option 1: Develop free version that has limited functionality and offer in App upgrade to paid version with full functionality. Both Apple and developer get a cut of all upgrades.
Option 2: Develop free version that is Ad supported utilizing Apples iAd service. Every use of app makes money for both developer and Apple.
Option 3: Offer free version of App that has ability to purchase "stuff" in App. This is allowed within the context of Apples agreement and again, both developer and Apple will make money off of this. The Kindle, Sony Reader, and other eReader apps are/will be an example fo this. The apps are free, purchase of the books in App will net Apple 30% of the purchase price.