Apple has launched its new operating system, iPhone OS 4.0, with features including mobile advertising and the ability to multi-task.
The new ad platform, called iAd, will allow developers to put adverts inside applications. The company has estimated it could deliver 1 billion advertising impressions a day on the 100 million iPhones and iPod Touches in use.
Apple will sell the ads, and developers will get 60% of the revenue.
New features also include folders to better organise and access apps, improved e-mail and the iBooks e-book reader and online store.
Apple has also announced developer preview of Game Center, Apple's new social gaming network, which will be available to iPhone and iPod touch users later this year.
The new version of Apple's software will be available on the iPhone in the summer as a free download. However, the multi-tasking function will only be available on the 3GS model.
Industry commentators were mostly positive about the news, but Andy McEwan, senior manager, ethernet point-to-point products, Virgin Media Business, said the software upgrade opens the floodgates for more strain on the data network.
He said: 'Put simply, operators are facing a data tsunami. The iPhone and other smartphones have completely overhauled how we interact with our mobiles and what we expect from them. With applications from games, to online shopping and Facebook, service provider networks are starting to feel the strain of massive data transfer. Today's software upgrade, only opens the floodgates for more.
'As handset manufactures rush to compete with the iPhone, we'll only see more data hitting the operator networks. To avoid causing a virtual traffic jam, operators need to ensure they've got the network speeds and agility to drive forward innovations in mobile.'