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As Apple prepares to celebrate a billion downloads from its iPhone App Store, I've been talking to some of those making a living from building mobile applications - and trying to work out whether the UK is developing an app economy.

Apple has introduced an in-app purchase feature for free iPhone apps that allow you to fulfill transactions within the iPhone applications themselves - no Apple App Store required. The feature was previously available for paid applications.

Slifter announced today that iPhone users can now grab the Slifter application for free, the first local product search tool available in the App Store that allows consumers to search and share products and promotions at local retailers and stores.