Can a system app be updated?

Question

If i have a system app on an Android with the same package signature and that has a new version on the Android Market will the Market detect it and be able to update it?

(For example an app that a Carrier adds to the OS).

UPDATE: Managed to validate this anwswer (marked it as resolved already)...but a new one appeared: Why doesnt the market show the system app on "my apps" when an update is available?)

Answer 1

In short: Yes.

After you install them, you will have the option of "uninstall updates" instead of "uninstall" as you see for the regular apps.

However, most carrier apps don't have updates through market, only google apps do. (For example: Gmail updates fairly often while SpringID may never update because they are not on the market)