[Michael Johnston]

During Apple's Worldwide Developers Conference, Apple CEO Steve Jobs announced some new features slated to be released alongside the 2.0 iPhone Software Update. Among these, the new update will include iWork document support as well as support for Microsoft Office documents (read only). Images in Mail and Safari can also be saved to a photo gallery and Japanese and Chinese text support is included. Additionally, contacts search, a scientific calculator, parental controls, and localization support for 62 countries have been added. Steve also mentioned briefly that applications distributed in the App Store would be DRM'd automatically.

DRM was mentioned briefly during Steve's presentation. Applications downloaded from the App Store will have "FairPlay DRM", although there has been no confirmation whether or not it will be forced or only included when developers want it.

One of the most often debated features Apple left out of the SDK was background processes. During his presentation, Forstall discussed the disadvantages of background processes. Instead, Apple will provide "push" notifications to applications which enable developers to sound a chime, badge their application's icon, and even provide text notifications a la SMS notifications. This solution will keep applications from constantly running in the background while simultaneously providing continuous updates to applications.

Steve also revisited the features of the App Store, and revealed that applications sized at 10MB or less would be available for download over EDGE, WiFi, and iTunes. Applications larger than 10MB would require a WiFi (or 3G on the new iPhone) connection or iTunes to download. Additionally, enterprise customers will have access to a "private" App Store distribution scheme and ad-hoc distribution of up to 100 apps can be performed as well.

iPhone 2.0 is expected to be available as a software update in early July and will be free to all iPhone owners. Current iPod touch owners will be required to pay a nominal fee of $9.95 for the update.

I realize that you put quotes around "background processes" to emphasize that they're not really background processes, but given that they simply don't exist at all, why state it like that?

Apple essentially said "Yes, we'll allow background processes. As long as they're not on the phone, but on a server somewhere on the Internet."

agreed. you really got my hopes up for second.