Much like the Installer.app application used to install unofficial iPhone applications, official iPhone applications will be delivered wirelessly to the iPhone via “App Store,” a new program that will be added to the iPhone in the next software update.
All of the hosting, credit card transactions, etc. will be handled by Apple.
Developers will be able to set whatever price they want for applications, but Apple will take a 30% cut of revenues.
There will also be a mechanism to download applications onto your computer then transfer them.
For free applications, there will be no charge to the developer.
Software development kit for the iPhone is available to developers today as a free download (the iPhone Dev site is currently down for maintenance). Joining the iPhone developer program — which will provide technical support, code testing and allow distribution through the “App Store” — costs $99.
The iPhone 2.0 software update — which allows end-users to run iPhone applications and includes a bevy of enterprise-related enhancements, including Exchange support — will be released as a free update in June.