iPhone 4′s introduction brings with it dramatic new video capabilities, and to take advantage of them Apple plans to release an iPhone version of iMovie. It will be available for purchase and download from the App Store and will cost $4.99, and it’s designed specifically for iPhone 4.

iPhone 4 goes on sale in the US, UK and Japan on June 24, 2010. The new phone sports a 5 megapixel autofocus camera with 5x digital zoom. The phone incorporates a backside illuminated sensor and built-in LED flash that works with video recording and still photography. The “tap to focus” feature, introduced with still photography on the iPhone 3GS, works with video on the iPhone 4. The new device can record high-definition 720p video at 30 frames per second.

With those advanced video features, it’s no wonder that Apple has developed a version of iMovie designed especially for the iPhone. The app will let you trim, edit and make changes just as you can with the iMovie app included as part of the Mac’s iLife software suite, complete with support for the iPhone’s multi-touch features.

Five themes are included with iMovie for iPhone – “Modern Theme,” “Bright Theme,” “Travel Theme,” “Playful Theme” and “News Theme.” Each theme provides titles and transitions you can use in your video project, on your phone. Soundtracks are also included to match each theme, and you can use music from your own audio library.

Photos can be added as well, and you can add a “Ken Burns”-style panning effect.

iMovie for iPhone lets you export your finished project in three different sizes ranging from 640 x 360 to 1280 x 720. You can share it by e-mail or MMS message, post it to the Web, upload it to your MobileMe gallery, or post it on YouTube.