If I am to publish an app to the store that targets Windows Phone 8, will Windows Phone 8.1 users be able to install it to their devices?
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Yes, Windows Phone 8.1 users can use Windows Phone 8.0 apps. Because it has Backward compatibility
. Apps created to target Windows Phone 8 continue to function on Windows Phone 8.1 devices without being republished.

Chris Shao
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2Yes, I've upgraded apps without issue. Be aware of the difference between Windows Phone Silverlight 8.1 apps and Windows Phone Universal 8.1 apps though. This is a new distinction in 8.1. "Silverlight" apps refer to the normal apps we are familiar with and are fully backward compatible. "Universal" apps are new and share the same .NET subset as Windows RT/Store/8 apps, so you can have a phone and a tablet/desktop app in the same solution. There are differences in namespaces etc though, so an upgrade/conversion is likely to contain breaking changes and require a bit of work. – James Jul 31 '14 at 08:45