The iPhone 3.0 software is due to be released later this year, and in addition to allowing GPS applications to display turn-by-turn directions, Apple's uber-device will finally bring something other smartphone users have been enjoying for a while: Bluetooth audio streaming.

With the new feature enabled on the iPhone, the device can be paired with a Bluetooth-equipped stereo, allowing users to ditch their cables and those infernal FM transmitters, to enjoy streaming audio from the iPhone's music player.

KickingTires head-honcho and former Autoblog Editor, Dave Thomas, got his paws on the new 3.0 software ahead of its release this summer and put the Bluetooth functionality to the test on a Toyota Venza. The verdict? It works as advertised. And it's about time. Check out the video demonstration after the jump.

[Source: KickingTires]