PocketPhonics (basic edition)

“PocketPhonics teaches the basics of reading and writing to young kids. Most surprising? It seems to work.” 148apps.com
PocketPhonics teaches kids letter sounds, first words and handwriting. It has been used in over three thousand schools, and tens of thousands of homes worldwide. It embraces the synthetic phonics method recommended by the Australian Federal Government’s Teaching Reading Report in 2005. Phonics (letter sounds) help children to read by understanding the sounds that letters make.
Independent research (see appsinmypocket.com/research) found children learnt nine times faster using PocketPhonics compared to a classroom lesson. 
"One of my children’s favorite early reading apps" New York Times
“This app feels much like a private tutoring session for early readers with emphasis on letter sounds and writing.” everythingmom.com
-“If you are working on phonics for your kids, this is the best application to have.” Technology in Education
-“This app feels much like a private tutoring session for early readers with emphasis on letter sounds and writing.” everythingmom.com
-“PocketPhonics is seriously educational and I think it’s a terrific tool for helping early readers. You can tell that a ton of thought and research was put into it and best of all, they talked and listened to teachers. It shows.” iPhoneMom.com
-“When it comes to learning apps for young learners and early readers, there is no better choice than PocketPhonics." ipad-applications.neiia.com
PocketPhonics is split in to 12 groups of letter sounds, each group is followed by a set of storybooks that use those letter sounds. Kids read storybooks that are on the right level for them.
The phonics levels are included in the price of this "basic edition", but the storybooks cost extra. PocketPhonics Stories (full edition) includes the stories in the price.
In the first group of letter sounds, there are six sounds to master before the child will be able to read their first storybook. Most children aged 4+ start to read their first storybook within 10 weeks if they use the app for 15 mins everyday.
Parents and teachers can easily monitor children’s progress online. Teachers and parents are emailed a certificate when a child completes a task.
Children can tap an unfamiliar word in a story, and the app will sound out the letters to help the child understand what the word says. If that’s not enough, they can tap again to hear the actual word and see a picture that illustrates its meaning.
As the child reads a story, the app tests whether they can read some of the key words. At the end of the story, it quizzes the child on all new words in that story.
Children master the following skills:
writing letters
recognising 72 letter sounds (e.g. ‘ch’ are the letters that make the initial sound in ‘chat’)
* blending letter sounds together to make words (e.g ‘ch-a-t’)
* hearing a word and selecting its written form (e.g. the app says, “chat”, the child has to select ‘chat’ from a group of words)
How it works
* The phonics levels are included in the price.
* The books are extra, but can be tried for free. $2.49 monthly and $21.49 annual subscriptions unlock access to all books for an unlimited number of children
* The subscription gives you access to more books as they are added
* Once subscribed, your subscription auto-renews each month or annually. However, you can easily turn auto renew off via the Settings app
* Payment will be charged to your iTunes account at confirmation of purchase
* Subscription automatically renews unless auto-renew is turned off at least 24-hours before the end of the current period
* Cannot cancel current subscription during its subscription period
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