Apple has announced that version 3.1 of the iPhone and iPod Touch firmware will recommend applications to users.

In an attempt to sell yet more applications above and beyond the 1.8bn it has already shifted, the genius functionality from iTunes is being applied to the App Store.

Furthermore, the company has also added Ringtones to iTunes store in what is seen as an attempt to appeal to a "youth" market, while podcasts have been demoted into the "more" category.

30,000 ringtones from all four major labels are now available said Steve Jobs, Apple CEO at the San Francisco event.

They can be applied to individual contacts, and cost $1.29 each.

OS 3.1 is released today, and should be available imminently to download to your iPhone or iPod touch. It arrives alongside a redesigned iTunes store, and a new version of iTunes - verson 9.

The full list of new features is:

- Improved syncing for music, movies, TV shows, podcasts, and photos
- iTunes U content organization
- Redeem iTunes Gift Cards, codes, and certificates in the App Store
- Display available iTunes account credits in the App Store and iTunes Store
- Save video from Mail and MMS into Camera Roll
- Option to "Save as new clip" when trimming a video on iPhone 3GS
- Better iPhone 3G Wi-Fi performance when Bluetooth is turned on
- Remotely lock iPhone with a passcode via MobileMe
- Use Voice Control on iPhone 3GS with Bluetooth headsets
- Paste phone numbers into the keypad
- Option to use Home button to turn on accessibility features on iPhone 3GS
- Warn when visiting fraudulent websites in Safari (anti-phishing)
- Improved Exchange calendar syncing and invitation handling
- Fixes issue that cause some app icons to display incorrectly