Apple today explained how iPhone users will be able to browse, purchase and install next-gen applications on their device, and there's no computer required.

Apple CEO Steve Jobs explained: "You're a developer. What is your dream? Your dream is to get it in front of every iPhone user. That's not possible today. Even big developers would have a hard time getting their app in front of every iPhone user. We're going to solve it, with what we call the App Store, an application we've written to deliver apps to the iPhone. And we're going to put it on every single iPhone with the next release of the software."

App Store is a little like the iTunes WiFi Store. Users can browse through listed applications and buy and install new ones. Featured items, categories, top lists, searchability - all features you find in iTunes on iPhone.

Applications can be purchased and downloaded over WiFi or the "cell network", Apple said. It's also possible to purchase applications using iTunes on your computer.

The App Store will also let users know when an update to an application they have installed becomes available, with a simple one click process to acquire and install that update.

Apple is offering developers a sweet deal for sales of their products. Firstly, developers pick the price; secondly they keep 70 per cent of revenue with Apple paying out on a monthly basis. Apple's 30 per cent slice includes all the infrastructure and credit card fees.

Developers can also introduce free applications, which Apple will distribute at no charge.

"This is the best deal going to distribute applications in the mobile space," said Jobs.

Developers will not be able to sell or distribute applications for adult websites, malicious applications or those which invade a user's privacy through the App Store.

All Apple's good news is tempered by one slice of bad news: iPhone users will need to wait until late June until the party begins, when Apple promises to ship iPhone Software Update 2.0, which enables all the new features the company confirmed tonight.