Yesterday, Apple announced an HUGE update for iPhone users - the ability to install 3rd party applications. Here’s what that means as well as some other just announced features.

App Store. The App Store adds a new button to the iPhone’s main page (above). Click on the icon and you have instant access to all Apple-supported applications. Developers name the price of their applications and Apple gives them 70% of that revenue each month. Free applications at no fee.

Games. Yes, games will finally reach the iPhone. At the press conference, SEGA showed a demo of Super Monkey Ball and EA demoed an iPhone version of its much anticipated Spore game. Awesome. This will be a great way to kill time while sitting in Reading and Writing Poetry.

WPA2 Support. Without getting all technical, this should mean that iPhone users will be able to connect to the “Northwestern” wireless network. Currently, iPhones can only connect to “nuwlan,” a connection not available in many parts of campus.

AIM. AOL presented an iPhone version of its popular AIM software. Previously, IM applications were only available for the iPhone by hacking the phone.

Microsoft ActiveSync. If you use Microsoft Exchange, you will now be able to get Push Calendars and Push E-mail. This means e-mail and calendar updates will go right to your phone as soon as they happen, not whenever your iPhone decides to check for them.

More in June. iPhone users can update their iPhone for free with the App Store in June. By that time I’m sure there will be thousands of more apps. iPod touch users will be able to get the update for a small fee. No word on pricing.

[image via Engadget]