You can download XCode for free.
You can use it to write programs and test them in an iPhone/iPad emulator. After that, you can't do anything with it without getting a developer license.
With your $99 annual fee to get a developer license, you'll be able to test your code on an actual device within the debugger environment. You'll get access to beta versions of XCode and iPhone/iPod Touch/iPad OS images so you can test your code with what could be a future version of iOS. And most importantly, you'll be able to submit and have your app published in the App Store. Even if you want it to be a free app, you can't submit it without a dev license.
Objective-C is the language that is required to make iPhone apps, and it's a pain in the ass even if you have a good understanding of OO programming. When I wrote my apps 2 years ago, I wasn't that proficient with OO (my main background is with straight C), so I had to learn both enough to do what I wanted to do. Objective-C is a different off-shoot of C, also starting in 1984 when C++ started, so each have had 28 years of separate evolution.
What I learned 2 years ago, I've lost, and will have to re-learn everything again when I'm ready to try it again. My hardware is no longer supported by Apple, so I'm going to have to get a new Mac and a new iPod Touch for testing before I can look into this again.
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