Apple OKs in-app purchases for free iPhone apps
The iPhone maker is now permitting developers to sell content, subscriptions, and digital services from within their freely available App Store applications.

Developers of iPhone and iPod Touch applications can now enable purchases from within their freely available App Store applications.
Until now, Apple has permitted in-app sales of content, subscriptions, and digital services only for apps costing at least 99 cents.
Apple on Thursday sent the following e-mail to developers:
Considering all the drama surrounding the App Store approval process, this latest move by Apple appears to be a positive one for iPhone SDK developers, as it gives them a bit more flexibility in how they design and potentially profit from the applications they build.
We'd like to hear from developers of iPhone applications that use in-app purchases, though; please tell us about your experiences in the comments.
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