I’ve heard that there might be some issues with this, but haven’t found any official announcements. Is it possible to release a new version of an app to AppStore where previous version was supporting iOS 5.1 and the new one supports iOS 6.0 only?
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No issue at all. Simply change the Deployment Target setting for your project and submit an update. People have updated apps for the last 4 years by changing the minimum supported version of iOS.