San Francisco  - Apple unveiled its proposed new software for its genre-defining iPhone Tuesday and gave acolytes of the world's most popular smartphone the feature they most wanted: the ability to cut and paste text and pictures on the device.

Lack of the cut and paste facility had been one of the main drawbacks of the device, compared to competitors like the Blackberry.

The new software also allows iPhone users to send multi-media messages to other phones, and will enable users to receive turn-by- turn instructions for driving similar to those in use on GPS navigation devices.

iPhone users can also now link to other phones via Bluetooth and automatically be connected to wi-fi hotspots. Voice memos and other audio recording will also be possible with the new software which will be officially released in the summer.

"The new iPhone OS 3.0 is a major software release packed with incredible new features and innovations for iPhone customers and developers alike. It will keep us years ahead of the competition," said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing.