In a move which could well cause record levels of smugness, Toyota has released a Prius advertising iPhone app which allows hybrid-fancying New Yorkers to have their doodles displayed on a whopping great digital billboard in Times Square. No news as yet on whether you can get away with writing profanity strewn, anti-green slogans or drawing pictures of big hairy cocks.

For anyone not conveniently close to the Big Apple and stupid enough to download the app, Toyota has thoughfully included 360 degree views of the in and outside of the car, along with some other stuff I kind of skim read which looked like interaction with the iPhone camera and a accelerometer-based game.

Augmented reality is pretty fucking cool right? I mean how could it not be – projecting fake stuff onto real stuff is an inherently cool use of technology. Given these high base levels of cool, you’d be forgiven for thinking that it wouldn’t be too hard to come up with something at least reasonably cool, even for a socially crippled and chronically uncool games designer. Arcade Reality – an AR shooter for the iphone – comprehensively stomps that theory however. Quite honestly, it looks about as much fun as masturbating with an electric sander. Who cares that you can tackle nasty aliens in your office/car/vermin infested bedroom when they look as awful as this.

Everyone knows the iphone has a pretty comprehensive range of features, but until now, there was one glaring omission – talking to God (the big bearded dude on high, not His Jobsness).

The answer to what must surely have been many a prayer has manifested itself in the shape of a miraculous new app from the Archdiocese of Boston’s television show, CatholicTV. Devout techies can take advantage of a divine range of features including reflections, Mass celebrations and recitations of the rosary. (via our favourite Boston-based business journal, the Boston Business Journal)

In the unlikely event that you ever bore of the app and are yearning for just a little more religous guilt (or just want an excuse not to use a condom), why not check out the hotly anticipated Answers 4 Catholics app, when it’s released next month. Meanwhile, cast your eye over the selection on this thread. Who ever said the church was behind the times.

O2′s stranglehold on designers and media types across the UK will soon come to an end, thanks to the expiration of it’s exclusive deal to provide Apple’s iPhone. Rival Orange is muscling in on the action, and in a brief statement released this morning announced that it would be offering app-hungry consumers a chance to get a piece of Britain’s coolest brand later this year.

“Orange UK and Apple have reached an agreement to bring iPhone 3G and 3GS to Orange UK customers later this year,” it said. “Orange, which has the largest 3G network covering more people in the UK than any other operator, will sell iPhone in all Orange direct channels including Orange shops, the Orange webshop and Orange telesales channels, as well as selected high street partners.”

Details are scarce, with no exact dates or pricing plans confirmed. It’ll be interesting to see if 02′s arguably inflated tarriffs are undercut though, and the stage could be set for a juicy pre-Christmas price war. If Orange’s proposed merger with the UK arm of T-Mobile goes through, the iPhone will be available to a rather hefty customer base of more than 49 million across the UK.

Sorry, another iPhone post, but it is just a quickkie. Like this a lot, Spotify on the iPhone, more importantly the ability to download tracks over 3G to listen to while on the tube! Excellent idea.

What is very interesting is just how publicly Spotify have launched the application, even though it is not even available yet! Hmmm, I wonder if it is the PR equivalent of twisting someone’s arm? C’mon Apple don’t be an asshole with this one, approve it!

Plenty of naysayers have since popped out of the nerdosphere to decry the video (below) as fake. If it does eventually hit the market however, then it might just be enough to tempt me to join the legions of smug graphic designers and advertising types who already own Apple’s mugger baiting handset. And if it doesn’t, well, I can always play the flash version.

Saw this cool iPhone 3GS application by Acrossair today on AppleInsider and it really excited me on the prospects for useful augmented reality (AR) applications, not just ones used to sell things like cars.

I think as we see more and more capable phones we are going to see a real directional shift in developing media for the mobile platform. As the interactive element becomes more noticable, instead of just point-and-click, we will have to walk to and around our applications to interact with them. At The Processor we think this is really exciting. A good example may be the developer looking to build in a public space, and through AR they could let residents know how the building will look in situ and how it may affect their environment. The AR app will allow us to engage in a very different way from just looking at a computer screen to physically getting involved.

An exciting future for AR applications lies ahead.