The story

Friday's launch of the iPhone 3GS could usher in an innovative and lucrative new era for those who create applications for the popular device, developers and industry observers say.

The phone's upgraded hardware, combined with a new operating system, will allow developers to design apps that wouldn't have worked on previous models of the iPhone.

For example, developers said, the iPhone 3GS is the first iPhone with a video camera, which could inspire apps that edit or mix video clips. Other developers are eyeing the new phone's built-in compass or its "push notification" feature, which pings users with messages even if its instant-message application is not open. Read full article »'s John D. Sutter contributed to this story.

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