I was fortunate enough to get an iPhone a few months ago. I truly love it and all that it can do. One of the best parts of a smartphone, is the way it helps entertain my kids at moments when patience (mine, not theirs) is running thin. Think at the doctor's office or while I'm checking out at the grocery store. It's also helpful when Allie is stuck in her car seat and I've exhausted all my other "car tricks."
Here are just a few of the kid-approved apps we can't live without.
Perhaps Allie's Favorite is the Mickey's Halloween Puzzle Book. It's a storybook that also has puzzles on each page.

She really, really loves this app...and I'm pretty sure it was free. I'm not big on actually paying for apps, so it was either free or only 99 cents.

Either way, she loves it and never tires of reading and working the puzzles. There's also a Winnie the Pooh puzzle storybook and a Finding Nemo one. SUPER cool apps!
Another great app is Curious George. It has quite a bit of interaction involved so Allie can spend quite a while playing this one.

And don't forget the beloved Disney Princesses. There's one called the Disney Princess Sticker Book. It lets you dress and undress each princess, but it also has a story for each one.

A new addition to my phone is the Pirate School app from Jake and the Neverland Pirates.

There are all kinds of games and songs on this app. Allie can create her own pirate song and then the app will play it back to her.
One of MY favorite kid apps has been on my iPod touch for several years. I moved it immediately to my phone because it's such a neat one. Allie killed many an hour at the ballet studio with this one! It's from FirstWords and is called "Animals."

It starts with three-letter animals and then moves up from there. The child has to drag the letters (which are scrambled) onto the corresponding letter under the animal. When they get the word right, the app says the name of the animal and then the child hears the animal sound.
I'm always on the hunt for more (and cheap!) kid apps so let me know if you've found any that your kids love.