iPhone Repo developer Tiny Code may have dropped a hint that iPhone Software Update 1.1.4 is just around the corner, and that Apple may be working with at least some "hackers" ahead of the imminent iPhone SDK launch. The company posted a statement on its Web site saying that it won't be developing any apps for jailbroken iPhones running software version 1.1.3 because of its working relationship with Apple.

The statement said in part "Tiny Code no longer produces fixes or applications for firmware 1.1.3. We can't say much, but we are working with Apple and with their SDK for the next firmware release and SDK applications and we shouldn't be missed for long. We will no longer update our Installer.app repo for legality reasons and you should see us soon on iTunes."

The statement makes it sound like Apple will be releasing an new iPhone software update to go along with its Software Developer Kit launch, and that iPhone and iPod touch apps will be available via the iTunes Store. It also appears that Apple is working with iPhone app developers that are currently relying on jailbreak methods, meaning unauthorized software installation hacks, to add their programs to the handheld device.

Tiny Code isn't saying anything else about their sudden halt in app development, and their silence took an interesting turn late Friday afternoon when the Web site went offline and was replaced by a 404 error.

Apple promised to release its iPhone and iPod touch developer tools in February, and the month is already half gone. Odds are the next couple weeks will bring even more questions and speculation as developers and end users await the SDK launch and the apps that will come with it.