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iPhone version
I think Textastic is the best app that works on iOS 4 in this category.
Textastic iPhone version will be great.
Answer
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Even if you design a new UI, would you really want to code on that screen?
Is anyone really using the iWork for iOS Apps to CREATE new Documents?
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But in this case iCloud Support would be nice, so that all your settings are synced between your iPad and iPhone.
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I submitted the iPhone version to Apple 10 days ago. I hope Apple approves it this week.
You can find the website with screenshots of the iPhone version of Textastic at http://www.textasticapp.com/iphone.html
There is also an updated manual available at http://www.textasticapp.com/iphone/manual/
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The iPhone version of Textastic is available on the App Store: https://itunes.apple.com/us/app/textastic-code-editor-for-iphone/id550156166?mt=8
You can find the website with screenshots of the iPhone version of Textastic at http://www.textasticapp.com/iphone.html
There is also an updated manual available at http://www.textasticapp.com/iphone/manual/
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Textastic 6 is a new universal app that works on both iPad and iPhone: https://geo.itunes.apple.com/us/app/id1049254261?ct=feedback&at=11lNQP&pt=15967&mt=8
Customer support service by UserEcho
Textastic 6 is a new universal app that works on both iPad and iPhone: https://geo.itunes.apple.com/us/app/id1049254261?ct=feedback&at=11lNQP&pt=15967&mt=8