iTunes 7.7 will debut in July (July 11th) when the 3G iPhone ships. It will handle app store functionality, the new iPhone 3G update, the iPhone 2.0 software update for existing iPhones, and the new MobileMe cloud syncing features. You'll note that its a "requirement" for new iPhone, http://store.apple.com/us/browse/home/shop_iphone/family/iphone?mco=MTE2NTQ.
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