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Apple’s new iOS 4 – the newest version Apple’s iPhone operating system – is now available for free download. Apple’s new iPhone 4 smartphone (available this Thursday), includes the new operating system (OS) as standard, but iPhones iOS 4 will also work with existing iPhone 3GS and iPhone 3 models, although multitasking is available only on the 3GS version.

The 378 MB software update adds several new features, including a limited amount of multitasking, folders, iAd, iBooks and GameCenter. Other minor updates include more advanced photo sorting and better HTML5 video support. A version of the OS for iPads is not currently supported (it’s due in September). iPod Touch owners can also get the update for free.

Apple’s iPhone 4 device boasts Apple’s new FaceTime video calling service, the new Retina display, a 5-megapixel camera with LED flash, HD video recording, support for iBooks, Apple’s A4 processor and a three-axis gyro helpful in mobile gaming. Demand has already exceeded supply.

Apple is also rolling out its new iAd platform, reports All Things D. Apple is now making its users the same offer that other big digital ad players offer: You can opt-out of ad targeting, if you’re willing to do a little work. Apple has a new 45-page privacy policy that comes with the iOS 4 update. iLounge highlights the key areas.

If you don’t want to see targeted ads, you don’t have to see targeted ads. But you’re still going to see ads. Figuring out how to opt out of targeting will take a little bit of doing, says All Things D, which also links to the opt-out pages for Google and Yahoo.

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