This past Monday, the long rumored Skype App for the iPhone and iPod Touch was released on the App Store. The app is a free download and in my opinion is a solid initial release.
To use the voice feature of the App, you need to be connected to a WiFi Network. From my limited use of the app, the quality of the connection is pretty good. Just like the desktop version, this will really depend on the Wifi network you are on. Even with my crappy internet connection at home (2MBp down), I still had a good connection while testing it out with fellow skyper Corey Harris. You can make a call on the Skype app via the standard head piece, the speakerphone or the wired headphones. Unfortunately, it does not work with bluetooth. Hopefully that will be available in a future release.
Just like the desktop version, Skype to skype calls are free and skype to landlines and mobiles can be made for a small rate.
For the chat feature, you can send an IM while connected to Edge, 3G, WiFI or GPRS. You can also receive IM’s as long as the app remains open.
Below are a few screenshots of the Skype Application.