<video>
* MP4 H.264 playback support, using hardware or software decoding
* Support for WebM software is not included in this release
<audio>
* MP3 and AAC audio support
Somehow, I'm not surprised that Microsoft once again chooses to be different from everybody else. I can encode in Vorbis and Theora/VP8 for Chrome and Firefox, or MP3 and H.264 for IE9, but there's no set of codecs which works on all three major browsers.
According to W3Counter[1], the iPhone OS has 0.83% market share among web browsers. Even assuming every single user is using the built-in browser, that's less market share than even Opera.
W3Counter is just one way of measuring/estimating general browser usage world wide, with the emphasis on "general". It may or may not be relevant to your business needs. The only way to know is measure what is hitting your site(s). In our case we are now getting 17.2% Safari (and growing); and we don't even intentionally target iPhone.