Apple unveiled new photo “editing” software called Touch FX. it was developed by Apple in a few days as a showcase project for SDK launch.
Basically it allows you to add nice photo effects by using you finger. You just tap or drag your finger across the screen to add preset effects.
Another Apple showcase project is called Touch Fighter. The first Apple game for iPhone, it features spaceship, which you steer with your fingers, and combat enemies.
Here is a short video of both apps in action:
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