Adobe has finally announced Adobe Photoshop Touch for iPad, five months after it launched the Android version of the same app. The app is resource hungry, so anyone with a first generation iPad is out of luck; you need an iPad 2 running iOS 5 to run this app.
This $9.99 app has a huge selection of powerful tools that you also find in the desktop version of Adobe's software. You are limited to working with images with a maximum resolution of 1600 x 1600, but you are free to work with layers, adding drop shadows, image blending and the usual array of filters and effects.
Photoshop Touch for iOS