Apple is working with other companies to test and develop the software development kit for the creation of third-party applications for the iPhone.

The iPhone SDK is now expected to ship alongside new iPhone software, firmware version 1.1.4, at least that's what leaked information on the web implies.

As reported by Macenstein, iPhone jailbreak software developer Tiny Code has turned gamekeeper, with a post briefly available on the developer's website claiming it to be working with Apple on future firmware releases and the SDK for iPhone.

The site briefly ran a message to this effect, though the site has now been taken offline and links directly with Apple's iPhone development website.

“Tiny Code no longer produces fixes or applications for firmware 1.1.3. We can’t say much, but we are working with Apple and with their SDK [software development kit] for the next firmware release and SDK applications and we shouldn’t be missed for long. We will no longer update our Installer.app repo[sitory] for legality reasons and you should see us soon on iTunes," the website claimed.

These comments suggest new iPhone firmware to enable third party apps to run on the device, and also hints that applications will be sold through iTunes.

The developer also confirmed his original loose-lipped website posting concerning its work on the iPhone to have attracted punishment from Apple, with the developer removed from the list of approved developers receiving iPhone SDK betas.

"TinyCode.com was ordered to be removed from operation by Apple, because by releasing firmware versions and stating I had possession of the firmware and SDK was apparently a violation of the Non-Disclosure Agreement I agreed to when I accepted a copy of the SDK and firmware," the developer explained in a post on the MacRumors website.