Apple is dialing up a slew of new features for the iPhone.

The software upgrade was introduced yesterday. One long-awaited iPhone feature will allow users to cut, copy and paste.

Apple is also broadening the way third-party software programmers can build and sell content. Developers now will be able to create applications that have items for sale within them, such as electronic books or additional levels of a video game.

Developers will be able to access the music within users' iPhone libraries, so, for example, songs they own can be included in games.

The new copy-and-paste software will be available in a free download for iPhones. Getting the software on the iPod Touch will cost $9.95. It will be out this summer.