This methodology could work for Apple. Apple can't develop everything on its own. It has to let third parties take a shot.
This model will let developers create iPhone apps, let Apple give them the stamp of approval, and then allow them to be sold via its iTunes Music Store (where Apple will take a cut, of course). Whether that dissemination would occur over the air, or via downloading to a PC and syncing the iPhone, isn't known. Either could work, though there is always an extra appeal to OTA-capable downloads.
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