More than 10 million applications were downloaded from the App Store, Apple said Monday. Previous iPhone owners  download the update for free while iPod Touch owners have to download the software update sold separately for $9.95. Users can wirelessly download applications directly onto their iPhone or iPod touch and start using them immediately. More than 800 native applications are now available on the App Store, with more than 200 offered for free and more than 90 percent priced at less than $10.

"The App Store is a grand slam, with a staggering 10 million applications downloaded in just three days," said Steve Jobs, Apple's CEO. "Developers have created some extraordinary applications, and the App Store can wirelessly deliver them to every iPhone and iPod touch user instantly."

The App Store on iPhone works over cellular networks and Wi-Fi,and  users can purchase and download applications wirelessly and start using them instantly. Applications are free or charged to the user's iTunes account and the App Store notifies the user when updates are available for their apps. The App Store is also available in iTunes (www.itunes.com) running on a Mac or PC, which syncs applications to the iPhone or iPod touch using a USB cable.