iPhone 3G video reveals App Store operation

Apple has posted a new guided tour of the iPhone 3G that primarily rehashes previously announced features, but also fully demonstrates purchasing and downloading of applications from App Store -- a mechanism not seen in action heretofore.

The video shows an application being purchased via a "Buy Now" button in a fashion similar to the WiFi music store. Once the application is purchased, the user is immediately returned to the home screen and an application icon with a progress bar appears. The user can (presumably) perform other actions while the application is being downloaded.

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