Apple iPhone software prices may rise

ByABC News
March 17, 2009, 10:59 PM

CUPERTINO, Calif. -- Those iPhone applications in your collection might soon cost you more to use if you tap into an array of new features coming your way.

Currently, consumers buy software at the iTunes App Store for a fixed, flat rate.

But beginning this summer, when Apple releases a new version of software for the iPhone and iPod Touch, developers can bring in extra revenue with sales of extra levels of game play; magazine, newspaper and e-book subscriptions; even music purchases that can be played within the game.

"There are other business models developers want to support, and we've been listening," says Apple senior vice president Scott Forstall.

Most of the apps offered through the App Store today are freeand developers won't be able to sell premiums within those apps. Extra charges only work in apps that cost money to own, Forstall said.

The iPhone has been a smash hit for Apple. The company says some 17 million iPhone have sold since its introduction in 2007, along with 13 million iPod Touches. The Touch is basically the feature-packed iPhone without the phone.

The App Store opened in July with some 3,000 applications. It now has 25,000. More than 800,000 apps have been downloaded, Apple says.

Other new features coming to the iPhone :

Cut and paste. Blocks of text will be able to be copied from an e-mail or document, like on a computer, and pasted elsewhere. That's something iPhone users have been requesting for some time.

Peer to peer. The technology will allow iPhone apps to connect to one another wirelessly. A game app might search for people nearby area playing the same game. Or, two professionals could point their iPhones together and share contacts.

One application came from a company called Smule, the brainchild of Stanford University professor Ge Wang, who uses the iPhone as a musical instrument hybrid.