The company showed off the updated software in March. It has multiple consumer-oriented features such as cut and paste, multimedia text capabilities, and a universal search functional.

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But many industry watchers said the firmware is aimed at making the iPhone the most attractive mobile platform for developers because it has more than 1,000 new application programming interfaces.

Apple e-mailed developers to say that it will only accept programs that work with the current 2.2.1 OS and the upcoming 3.0 version. The company also said apps already in the store will be removed if they do not work with the upcoming firmware.

"Existing apps in the App Store should already run on the iPhone OS 3.0 without modification, but you should test your existing apps with iPhone 3.0 to ensure there are no compatibility issues," Apple said in an e-mail to developers. "After iPhone OS 3.0 becomes available to customers, any app that is incompatible with iPhone OS 3.0 may be removed from the App Store."

This policy may put a strain on developers, particularly the smaller teams of programmers that don't have a wealth of resources. The decision likely requires developers to purchase additional test iPhones or iPod Touches because it's difficult to rapidly switch between the different software versions. Additionally, some developers have expressed concern that existing apps will need more modification than Apple indicated.

The difficulties are relatively minor, though, and most developers will likely adjust because the App Store represents a tremendous financial opportunity. The 3.0 software will open the door for more innovative and lucrative apps because it enables in-app purchasing, peer-to-peer multiplayer capabilities, and apps with third-party hardware.

That iPhone smartphone may be your next computer. InformationWeek has published an independent analysis of this topic. Download the report here (registration required).