There is some good news for developers who plan to create free applications for iPhone. According to Apple, the company will not regulate free applications. On the other hand, all commercial applications for iPhone will be subject to an approval process. However, both free and commercial applications will be distributed through iTunes. In other words, Apple will act as a gatekeeper and will increase iTune's importance as a distribution service.
It is unticipated that Apple will be getting a cut from all commercial software revenues.
In my opinion this is an extremely adroit plan.
First, the company will be getting additional revenue. If we look at the abundance of commercial applications for example for Win Mobile or Symbian, we can safely assume that this can turn out to be an extremely profitable revenue source. At least, in my opinion it will cover the costs associated with the approval process.
Secondly, Apple will have control on all, both free and commercial software as long as the applications will be distributed through iTunes.
Third, this decision shall encourage free application developers, because they won't have to go through an approval process and thus we shall expect to see a lot free applications for the wonder device.
On Thursday more information will be released during Apple's press event regarding the iPhone SDK. So, stay tuned and don't forget to subscribe to our RSS feed.