The rumor mills have been working overtime on the latest possible development for the iPhone - third party application support.

Looking to T-Mobile’s Sidekick product for a hint about what may be going on behind the scenes, there is chatter among the blogosphere about a program for third party developers working with Apple to create certified applications that will run natively on the iPhone.

Native applications are far more capable than their Web 2.0 cousins in that they provide for a richer experience, faster throughput and are not saddled by the need for internet connectivity whenever you wish to use them.

Sources familiar with the restrictions put in place by T-Mobile for the Sidekick application development indicate it is likely that Apple will select partners to work with and will then put the partner applications through rigorous

testing to assure they meet the quality standards Apple holds itself to before being made available via the iTunes Store.

Apple makes a nice business of selling games for the iPod via iTunes now and the new iPod Touch could see explosive growth if the usability of the device were coupled with an onslaught of applications designed for both it and the iPhone. Working together with recognized names like Electronic Arts to produce games that take advantage of the full power of the embedded OS X and features of the phone could prove tremendously valuable to Apple.

The present unlocking of iPhones appears to be a growing business with unlocked iPhones selling for nearly 50% more than retail and Apple would likely satisfy a great number of those people adopting unlocked devices by allowing for third party development.

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