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Originally Posted by Xennex1170
A bit off topic but will older iPads be able to use the apps designed for the 'new' iPad? Or is this the front end of a schism in the iPad universe?
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It should be identical to the situation when the iPhone 4 came out. An app can have retina and non retina assets (images). If the app detects it's on a retina display it will use those assets (typically they have @2x in the filename so it knows to use the hi-res versions).
Of course a developer could potentially release an app that is retina only, I cannot think of any such apps though.