Apple says it is expanding iPhone features

Apple Inc. is broadening the ways that third-party software programmers can sell content on the iPhone.

Apple (nasdaq: AAPL - news - people ) says software 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.

he company unveiled the new tools along with the third generation of software for its iPhone during an event for journalists at its headquarters in Cupertino.

Apple launched the most recent iPhone last summer. The company sold 13.7 million iPhones in 2008.