Apple also announced the distribution model for the iPhone applications, the next version of the iPhone software will have an application in it called “App Store,” all of the apps will be listed in this application. Applications do not have to be a set price, the price for the applications will be decided by the developers, and the developers get 70% of the revenues, well what about the free applications? They are completely free for Apple to host. The applications can be downloaded and installed to the iPhone over the air, cellular or via Wifi.

Now this is where things get a little confusing to me… “You can sideload them into the iPhone as well from iTunes. But it goes further: if you’ve downloaded an app and the dev updates that app, the App Store will tell you it’s been updated! If you like it, tap the update button and it’ll be replaced by the updated version all over the air, automatically. It will be the EXCLUSIVE way to distribute iPhone applications.” -Steve Jobs

If the App Store is going to be the exclusive way to distribute iPhone applications then why did you mention that you could load them on to the iPhone through iTunes?

The SDK capabilities, the App Store, and the enterprise stuff will be delivered in iPhone software update 2.0. The update will come in June, developers will be able to get a hold of the beta version today so that they can give feedback to Apple and build their applications. The software update will be free, unless you have an iPod Touch, then it will cost some money, no hard numbers yet, but my guess is it will be $20.