Scott McNulty, friend and fellow-Pennsylvanian, is reporting on The Unofficial Apple Weblog that Connected Flow is going to release a free iPhone application called Exposure that allows you to browse and interact with Flickr.
Connected Flow, founded by Fraser Speirs, is very well acquanted with the Flickr API. Fraser developed both the iPhoto and Aperture plugins for Flickr. He also toyed around with a full Mac application that utilized Flickr, which was also called Exposure, but it was never publicly released. ((Though this application was never released, you can see screenshots here.)).
So Connected Flow is well-suited and in the perfect position to release an iPhone application for Flickr. I said it was free above, but there will be a pay-version for $9.99 that will eliminate the ads. This is very much the same model that I expect Twitterrific's iPhone application to take, especially since Twitterrific itself does already.
Let me also say that I think this application is going to be extremely popular. The fact that it will be a full-featured free application, with the option to buy, is going to make it a no-brainer for any Flickr iPhone users.
Connected Flow: Announcing Exposure.