iLounge

AOL is splitting its AIM app for the iPhone and iPod touch into two versions, and both add location services and SMS integration. The free version of AIM, now known as AIM Free, is currently available in the App Store and is now supported by ads, while the paid version will remove the advertisements; both will include the same features. The new features include the ability to access Contacts directly from the app to send an IM to a saved screen name or SMS to a phone number, the ability to stay logged in for up to 24 hours after the app has been closed and optionally receive notifications via SMS when a new IM arrives, support for multiple accounts, and the ability to share location information with buddies and access a new Buddies Near Me smart group. According to the free version’s description, AIM Paid is currently going through the App Store approval cycle and will be available soon; pricing has not yet been revealed. [via Ars Technica]

Update: The paid version of AIM is now available on the App Store and sells for $3.