True, it's not the first app offering turn-by-turn driving instructions for the iPhone 3G or iPhone 3GS -- but it is from TomTom, an industry heavy-weight that is finally delivering on years of rumor and speculation. After starting with New Zealand a few hours ago, the iTunes App Store is now populated with region specific TomTom apps for NZ ($95), Australia ($80), US and Canada ($100), and Western Europe ($140). If that sounds expensive... it is; dedicated TomTom navigators start at $120. In other words, this isn't one of those knee-jerk 99 cent App Store purchases. Naturally, that price does not include the announced TomTom iPhone car kit (rumored to cost £113.85 (about $194) with bundled mapping software) that mounts and charges your iPhone 3G or 3GS while enhancing its GPS performance, speaker, and microphone. Our advice: wait for the reviews before dedicating your non multi-tasking iPhone to the dashboard for navigation duties.

Update: Recombu took the software for a spin and seem duly impressed by their ability to navigate streets with an iPhone taped to the dash (not a joke). They say that when a call comes in, the TomTom app "turns off but restarts as soon as you finish the call." Lame. See the video overview after the break.

Update 2:
TomTom says the upcoming car kit dock / windshield mount will also work with the iPod touch and third-party apps -- it contains a faster, more accurate GPS chip than the one in the iPhone. Check a video of it after the break.

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TomTom for iPhone 3G and 3GS hits the App Store

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[Thanks to everyone who sent this in]

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TomTom navigation for iPhone 3G and 3GS arrives (update: Video!)