As well as announcing iTunes 8, a new iPod nano, changes to the iPod classic's capacity and a refreshed, slimmer iPod touch, Apple has revealed it has an iPhone software update in the works.

Announced by Steve Jobs at the "Let's Rock" Apple special event, the new firmware - version 2.1 - will be available to iPhone users on Friday.

Jobs described the forthcoming release, that will be free for iPhone owners, as a "big update that fixes lots of bugs".

Promising that with the new software, "you won't get crashes" Jobs also stated that it will "improve battery life".

In addition, the 2.1 will support the Nike+ feature and the new Genius playlists abilities as announced as part of the iTunes 8 release.