iPhone App Store: 500 Apps at Launch, 25% Free [Update]

USA Today spoke with Steve Jobs about the impending App Store launch that is rumored to launch at 9 am PT on Thursday, July 10th.

Jobs reveals that 500 applications will be launching on Thursday and that it is "the biggest launch" of his career. Apps will be available from MySpace, Facebook, AOL, eBay, SEGA and many more companies. One called Pandora allows you to create custom internet radio stations:

Pandora is already available on other phones from AT&T and Sprint, for a monthly fee. On the iPhone, it is free. That makes it "a credible alternative to broadcast (radio)," in part because iPhones can be plugged into car stereos, founder Tim Westergren says.

According to Jobs, at launch, 25% (~125) of the apps will be free while 90% of the remaining applications will be $9.99 or less. Meanwhile, New York Times has a similar article and pinpoints that one third (~166) of the apps will be games. A new site called TouchArcade.com is specifically covering iPhone and iPod touch gaming and has already covered some interesting possibilities.

Update: The New York Times hosts videos of some upcoming iPhone applications: Tap Tap Revolution, Twinkle, and FriendBook.

MacRumors will cover many of the new applications on launch. Developers should submit information, links and screenshots webmaster@macrumors.com. No application information will be published prior to the App Store launch.