Apple on Wednesday announced that a software update for the Apple TV has been released, which enables the device to stream video clips from YouTube. What’s more, just a few days away from the eagerly awaited iPhone's launch, Jobs revealed the device will include a special YouTube viewing application too. "Now users can enjoy YouTube wherever they are - on their iPhone, on their Mac or on a widescreen TV in their living room with Apple TV," said Steve Jobs.

About 10,000 YouTube videos will be available for the iPhone's US launch, according to Apple's release. YouTube, a subsidiary of Google Inc, will be recoding the rest of its videos into the H.264 format used by the iPhone within months. The iPhone will be the first mobile phone to use H.264, Apple said.

"IPhone delivers the best YouTube mobile experience by far," Apple Chief Executive Steve Jobs said in the statement.

Even though the iPhone will use a relatively slow data network provided by AT&T, it will also be equipped with Wi-Fi, providing faster speeds for video streaming where high speed internet is available. So the YouTube addition is still a nice plus. Apple’s iPhone is probably the most hyped consumer gadget this year, and only after its launch on June 29 we will know for sure if Apple’s device can live up to expectations. Two models, for $499 and $599 depending storage capacity, will go on sale in the U.S. next week.