When a circled number appears on the App Store's icon (on the Home screen), or when one appears on the Updates icon within the App Store program, that's Apple's way of letting you know that a program you already own has been updated. The beauty of a single-source catalog like the App Store is that Apple knows what programs you've bought—and notifies you automatically when new, improved versions are released.
When you tap Updates, you're shown a list of the programs with waiting updates. And when you tap a program's name, a details screen tells you precisely what the changes are—new features, perhaps, or some bug fixes.
You can download the update, or all of the updates, with a single tap…no charge.
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