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Makes sense to me, since they're talking about two different shipping costs - the customer gets free shipping, but obviously Apple still has to pay for shipping. Since it's supposed to be a "free" upgrade (i.e. the customer does not have to pay for the product itself), the price is just to cover Apple's actual costs for processing and shipping the order. So for the customer, shipping is "free" because it's already been included in the item price. I guess it's just a way to zero-out the additional shipping line item.
 
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