Careful iPhone users might notice that Apple added AVI support according to Apple's iPhone tech specs. And would like to play their AVI on iPhone.
If you want to play AVI movies downloaded from the internet on you iPhone, you can convert AVI to iPhone friendly format. AVI with JPEG compression is high quality, but it's HUGE. So you can convert them to MP4 format and it looks really nice on your iPhone 4. We recommend iPhone Video Converter Suite, which provide optimized presets for your iPhone so you don't need to worry about the settings for your iPhone.

Convert AVI to iPhone Steps:
Step 1: Import AVI Files
There are 2 ways to load files: directly drag them inside or go to the menu bar and select "Open file" from the main interface. This Total AVI to iPhone converter support batch conversion, so you can import multiple files at a time.

Step 2: Select an iPhone compatible format as output format
You'll find a wide range of preset video setting options avaiable for Apple iPhone. Click "Profile" button to select "iPhone MPEG-4 Video(*.mp4)" for converting AVI to iPhone 4. Remember that the output file size and converting speed mostly depends on the Bitrate you set. Larger Bitrate, larger file size and longer convertion time.
Click "Output" button in Output video Area and choose the destination of your folder.

Step 3: Start converting AVI to iPhone
After you finish the above settings, and check the files needed to convert in the file list, then you could click "Convert" button to start converting AVI to iPhone now. You are enabled to view the whole conversion progress from the progress bar at the bottom of the dialog box.
Now you can eject your iPhone from iTunes and watch videos on your iPhone.
