A German software company says it's developed an application that turns the Apple iPhone or the iPod Touch into the equivalent of a smart card for securing access to a desktop or notebook computer.

Charismathics, a player in cryptographic middleware, said it expects its iEnigma software to receive approval by Apple (NASDAQ: AAPL) for distribution on the company's App Store by late April.

The $9.99 application software is currently in a beta test phase. Charismathics also plans to release a version for Windows Mobile devices later this year. The company says it's targeting both small-to-midsized businesses as well as larger enterprise companies.

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