When creating a Paid/Lite version of an iOS App, do you create multiple APP IDs in developer portal?
If you do this, do you have to create a separate group of In-App purchases as well?
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Yes. You’ve got two apps, and therefore need two different app ID’s.
See Is it possible to share ONE In-App purchase between TWO apps?. Basically, yes, you need to create a separate group of purchases, but since your server tracks who has bought what, you can link the two so that purchases made in one app carry over to the other.