After the big unveiling of the next version of the iPhone OS (4.0), Apple have announced that iBooks (an eBook reader originally designed for the iPad) will be available on iPhone OS 4.0 later this year.
The iPhone version will allow iPhone an iPod Touch users to purchase eBooks (much in the way they can purchase songs and apps) on the device itself.
The iBooks store will only work within the United States, but Apple will extend access internationally as the release date for the next iPhone creeps closer.
From a business perspective, the iBooks application will directly compete with the Amazon Kindle, which already offers 450,000 books. The recent launch if the iPad in the United States has already produced iBook sales of up to 600,000 downloads.