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Reports show that Apple plans on a restrictive policy for application development. According to iLounge, the iPhone SDK will limit what kinds of iPhone and iPod Touch applications can be developed, where they can be sold, and what types of peripheral devices they can access.
Since iTunes is the primary means for getting software updates onto or off of the iPhone, Apple would most likely, require all iPhone or iPod Touch applications to be sold through the iTunes store. Smaller developers would have an advantage of getting noticed as a result of the visibility of the iTunes store.
