The App Store is a way for owners of the iPhone and Touch  to add games and other software and Web shortcuts to the devices. Heavyweight participants include Facebook, MySpace, AOL, eBay, Major League Baseball, Sega and Bank of America, says USA Today. Consumers initially will buy the new iPhone for its price and speed, but later on applications will make the sale, says Tim Bajarin, an independent analyst at Creative Strategies.

"When IBM introduced the PC, it was good, but it didn't take off until people started discovering the software," he says. The breadth of the applications "dramatically differentiates

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