An update for Skype on the iPhone has been released. Version 1.1 of the update offers some additional fixes and localisations, but the major addition is ability to send SMS.

This update is compatible with the iPhone 3.0 Firmware, so many people were hoping that Push notification would be included. It has not been, so the functionality of Skype on the iPhone is limited. Apple does not allow Applications to run in the background, so one can’t receive calls or message notifications in Skype without the app continuously running. The moment you jump out to the iPod, Contacts, Phone or any other part of your iPhone OS, Skype quits.

Without push notifications V1.1 of the Skype App for iPhone remains a novelty for Skype users, and only mildly useful for “away from the desktop” users who need to make a call over wifi.