I’m not sure what I think about this yet but, I do think it could help clean up the App Store a bit. Instead of developers creating a free lite version of their app, they could just make the application free with an in-app purchase to buy the full game thus eliminating the need for free lite versions of applications.

Below is Apple’s memo.

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.

Visit the App Store Resource Center for more details about how you can add In App Purchases to your free apps.

“The rate of App Store downloads continues to accelerate with users downloading a staggering two billion apps in just over a year, including more than half a billion apps this quarter alone,” said Steve Jobs, Apple’s CEO. “The App Store has reinvented what you can do with a mobile handheld device, and our users are clearly loving it.”

Check out the full press release below.

Press Release

CUPERTINO, California—September 28, 2009—Apple® today announced that more than two billion apps have been downloaded from its revolutionary App Store, the largest applications store in the world. There are now more than 85,000 apps available to the more than 50 million iPhone™ and iPod touch® customers worldwide and over 125,000 developers in Apple’s iPhone Developer Program.

“The rate of App Store downloads continues to accelerate with users downloading a staggering two billion apps in just over a year, including more than half a billion apps this quarter alone,” said Steve Jobs, Apple’s CEO. “The App Store has reinvented what you can do with a mobile handheld device, and our users are clearly loving it.”

Today, iPhone and iPod touch customers in 77 countries worldwide can choose from an incredible range of apps in 20 categories, including games, business, news, sports, health, reference and travel. With the recently introduced iTunes® 9, it’s now easier than ever to organize and sync your apps right in iTunes and they will automatically appear on your iPhone or iPod touch with the same layout.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

- Yep sure did! (66.0%, 1,093 Votes)
- No, and I’m not going to. (4.0%, 63 Votes)
- I’m going to, I just haven’t yet. (30.0%, 493 Votes)
Total Voters: 1,649

The poll above was taken right when 3.0 was first released. It would be interesting to take it again now and is if the results are any different. You can still vote on this Poll in our Poll Archive page. You can also vote/view all the past polls on the Poll Archive page as well.

Below is the new poll. I know it can be a little tricky because so many apps cross into a few categories but, it doesn’t have to be exact just a guestimation of the type of apps you tend to install most often.
Note: There is a poll embedded within this post, please visit the site to participate in this post's poll.

The Redeem option has now been moved to into the App Store application under the Featured option. Once in the Featured option, you will need to go into the New category and scroll all the way to the bottom… there you will see Redeem.

The button was previously located in the iTunes application under the More option. Before that, it was located (just for a short time) in the App Store application under a More option (the More option no longer exists). And before that, it was located in the iTunes application in the Downloads option (before there was a More option in iTunes). It seems Apple cannot seem to make up it’s mind on where this feature fits in. Personally, I think the new place they have chosen it a little awkward, but maybe I will get used to it.

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Info via Gizmodo.

Apple’s Quote:

Light a candle and cue the music. Okay, forgive us for sounding like doting parents, but we’re just so proud – having watched the App Store go from promising newcomer to full-fledged revolutionary. To celebrate its first birthday, we’ve gathered some of our favourite games and apps. Part fun. Part function. Entirely amazing.

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Story via Tech Crunch…check out full article HERE.

Video

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For more pics and videos…you can check out THIS article by AppleInsider.

* Yes (31.0%, 481 Votes)
* No (17.0%, 272 Votes)
* I don’t have any kids! (39.0%, 619 Votes)
* My kids have their own iPhone/iPod Touch! (13.0%, 197 Votes)

Total Voters: 1,569

Our two year old actually uses one of our old iPhones (1st gen)…we have a case on it and child proofed it as much as possible. It keeps him busy wile we are waiting for things…like at the doctor’s office or in a restaurant…he loves it! Even though he is usually very careful with it, I will admit that he has dropped it a few times (ok, quite a few times) but, it hasn’t broke yet!

You can still vote on this Poll in our Poll Archive page. You can also vote/view all the past polls on the Poll Archive page as well. Below is the new poll. Honestly, I thought I had already done this poll but, I went back and looked and I haven’t…maybe I just had it in my head so I thought I already did, that happens!

Here’s the quote from the app in the App Store. It was still there at the time of writing this article:

If your iPhone is jail broken, stop any additional background services that may be running. If any jailbroken applications are running, you will experience performance issues. (ie. Winterboard)

Thanks to Frederick for sending this in!

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Pinch Media has been keeping some nice records of App Store app statistics. What I found to be interesting were the results of the stats. It seems that people quickly lose interest in the apps they download from the App Store. In fact, according to Pinch Media, “For free applications, only about 20 percent of users return to use the app the first day after they download it, and then it quickly drops off from there. By 30 days out, less than 5 percent are using the app. The chart for paid apps shows a slightly steeper fall-off rate.”

Not only did I find this to be interesting but, based on my own experience, highly accurate. There are very few applications that I use on a daily basis and to be honest, there are many I completely forget about after using them the first time (or demoing them).

When I do find that I have a few minutes to spare (usually when waiting at the doctor’s office or when meeting someone) there are a select few games/apps that I choose to occupy my time with. I have pages (and pages) of applications on my iPhone but honestly, I could probably only name about one page worth of those applications. I do realize that I might be a slightly abnormal case since I am constantly testing apps but, I have a feeling this is a universal experience.

What I cannot figure out is if I get bored with applications, if I am partial to certain types of apps or if I just plain forget about apps that I have on my iPhone. Just the other night, Doug and I were watching a movie and I liked one of the background songs so, what does Doug do, he whips out his iPhone and opens Shazam! I had totally forgotten about Shazam and the fact that it is a super cool application! So, I’m still pondering this one and trying to decide if App Store apps are just not developed well enough to hold my attention or if my iPhone is just as saturated with apps as the App Store that I cannot even remember that some exist (even at times when they would be very useful)! You will have to let me know what you think in the comments!

Pinch Media’s results go on to talk about the effectiveness of putting ads in a free application (which turns out to be completely ineffective). You will want to check out TechCrunch’s full article…it has a lot of interesting information. Also take a look at the the Pinch Media presentation at the end of the article (it is an embedded presentation)…there is a ton of great information and stats in there!…especially if you are are app developer or looking into getting started in the app developing world.