Stir together the apples, cranberries, lemon, sugar and water in a large saucepan. Bring to a boil over medium-high heat, stirring often. Reduce heat, simmer, stirring often until the cranberries pop and the mixture starts to thicken (about 15 min).
Remove from heat, and stir in sweetened dried cranberries. Delicious served warm or cover and chill until ready to serve. Can be stored in the refrigerator for up to 2 weeks.