Skype has updated its iPhone and iPad apps to include new features, such as account creation from within the application itself and the ability to sign in using your details.

In addition, the company has revealed that more than 120 million iPhone and iPad versions have been downloaded to date. That's a lot of users right there. Plus, over 20 million photos have been shared using the Photo Share feature. Market analyst Distimo lists Skype in the top ten free apps of all time.

The new version, 4.2.1 which is available to download now, allows you to merge your Windows Live Messenger and accounts with your Skype account. And, once merged, your contact lists will also be brought together into the one place. You can also start a new account from within the phone or tablet software.

Another handy new feature that comes with the update is the ability to edit your instant messages. And Skype emoticons are now available on Skype for iPhone and Skype for iPad too. If your device has a Retina display, they will even animate.

Skype is a free download from iTunes.