In order to update your application in Google Play you will need to increase your application's version first. You can adjust this setting from the "App Info" tab when you are editing your project. After updating the version build your app again and download the new Android Package file (APK) the represents your updated application.
The version code needs to be a monotonically increasing integer. The version name can be anything you want it to be - you may want to use the generally recognized x.y.z notation.
1)Does it automatically ask to updated to the new version or we have to write the code for it?(when user has internet connection )
2)when user try to install new version does it update or install new version as a new application ?
You don't have to write any code. When the user next visits the Play Store, the app will be listed as having an update available (at which point the user can choose to update).
It's an update - the old app will be gone, but all data and preferences are preserved.
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