I’ve seen quite a few people saying that it isn’t possible to move an iOS app from paid to being free with an in-app purchase to unlock the full functionality. Fortunately they’re wrong.

“Traditionally” I would have had to remove version one from sale and offer a completely new app, which would have meant that existing users would have to pay again to get the same functionality. Or I’d have to support two apps. Or I’d keep the same app in the store and all existing users would get downgraded to the free version. None of these solutions seemed fair to existing users.