When the iPhone first launched, few saw the vision of turning it into a musical instrument. Today, Smule, the startup that's turned the iPhone into a flute, is approaching 1.5 million customers downloading its applications to express themselves in music.

In this segment, Jeff Smith, co-founder and CEO of Smule, talks about how he and co-founder Ge Wong got Smule off the ground. He also talks about how the company's applications - the Ocarina and Leaf Trombone, to name a few - are iterating by enabling users to create sheet music and songs to share. He also talks about who's playing and making connections on these apps.

Check out the first part of my two-part interview with Smith. In the second part of our interview, (which airs tomorrow) Smith talks about the business model behind Smule and why the company is on track to beat its 2009 revenue forecast of $1.4 million.