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Photos: iPhone celebrates its first birthday

At the official launch of Apple's iPhone software development kit in March, prospective developers got a sense of the scope of applications they could create for the phone. Here, Scott Forstall, vice president of iPhone software, demonstrates an application called Touch FX, which lets users add effects to a photo using a finger on the iPhone touchscreen. Pinch or tap to introduce fun-house mirror style effects. Want to erase your doodlings? Shake the phone.

Apple plans to be the sole source of iPhone apps through an iTunes-like application called the App Store, which is expected to arrive in early July along with new iPhone software and the iPhone 3G.

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