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The update includes a mobile advertising platform called iAd that will be used to place adverts in applications made by third parties.
Mr Jobs said mobile users spend more time inside applications than searching the internet. Therefore it made sense to have adverts within the applications - or apps as they are commonly known. Apple's move into mobile advertising was widely expected after it bought Quattro Wireless mobile advertising network for almost $300m (£196m) in January.
[edited by: engine at 2:06 pm (utc) on Apr 9, 2010]
Well, that kills any desire I might have had to own an iPhone.
Has anyone noticed that AdSense doesn't work out-of-the-box on iPads?
Not sure about iPhones, but this could be part of that strategy as well to cut Google out and take that revenue.