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Thank you Apple! Thank you, thank you, thank you! This was bound to happen at some time. Apple has finally opened up the in-app purchase API to more than just paid apps.

Great! What’s the catch? Well… According to their site:

1.1 You may use the In App Purchase API only to enable end users to purchase content, functionality, or services that You make available for use within Your Application (e.g. digital books, additional game levels, access to a turn-by-turn map service). You may not use the In App Purchase API to offer goods or services to be used outside of Your Application.

On Currency: 2.1 You may not use the In App Purchase API to enable an end user to set up a pre-paid account to be used for subsequent purchases of content, functionality, or services, or otherwise create balances or credits that end users can redeem or use to make purchases at a later time.

2.3 Content and services may be offered through the In App Purchase API on a subscription basis (e.g., subscriptions to a magazine, comic series, or financial reporting service); however, rentals of content, services or functionality through the In App Purchase API are not allowed (e.g., use of a particular game item or digital book for a pre-determined, limited period of time)

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This means a lot for the iPhone Development Community, this eliminates the need for a ‘lite’ version of the app. Unfortunately, that does not affect the game Finding Fernando, that we built some time back. The game has a premium, and a lite version. According to the terms we still cannot offer level upgrade packs unless it was first purchased for 99 cents.

On the flip side, magazine subscription models, podcasts, and certain bloggers can now offer better options to their reader-base.

Not quite a homerun, but absolutely a ground ruled double. Keep up the good work Apple.

According to this article on MobileCrunch, Apple is planning on ‘unlocking’ the functionality of Radio.App. Great! But, why does should this concern us? Well, its a larger issue – much larger than some silly app – apple needs to allow background processing for more than their native apps. Why? Because there would be so much more robust application if this was possible. E.g. Loopt could constantly be checking your location, and pushing much better targeted updates accordingly. They have already experimented with this, but it took the equivalent of an amendment to the constitution to get AT&T to jump on-board, and its limited as well.

Imagine the possibilities if when you walked into a restaurant you could be immediately notified of a special they are having, or more importantly, a special the competition is having? These things are all features the development community yearns for. Apple, your an industry leader, listen to your development community!