Apple has updated its iTunes App Store to give customers the option of gifting an iPhone (or iPod touch) application to a friend. It's similar to the option of giving music or video content from the iTunes store, which has been in place for a while.
A "Gift this App" choice is available from a drop-down menu for paid apps. Gifts can be sent by email or printed and delivered personally, although it's not possible to send app gifts to a recipient in a different country.