I currently have a paid app in the store. Apple have not allowed a \'lite\' version to be submitted as well, so I have no choice but to update the current paid version to a
I'm dealing with the same thing and came up with the following idea: Create the freemium version under a new name and app ID. Keep the existing paid app in the app store, but raise the price to something absurd and clearly state in the description that the app is there to maintain support for existing users and that new users should try the freemium version instead.
Existing paid users won't lose support for their existing app and can delete and install any time it without re-purchasing.
You won't have to keep updating the old paid app, either. Just keep it in the app store.
The downside is that existing paid users will not be able to migrate smoothly to the freemium version to get any extra features you add in the future without re-paying for what they already have.
Still trying to decide if this will work for me but it could be a good option for others. Comments appreciated.