http://ocarina.smule.com/

Ocarina™ is the first true musical instrument created for the iPhone. Both experts and beginners will be amazed by this innovative player. Ocarina is sensitive to your breath, touch and movements, making it even more versatile than the original. Unlike other musical applications, there are no pre-compiled riffs so musicians will find unlimited opportunities for self-expression. Advanced options allow you to choose between diatonic, minor and harmonic scales. Or channel your favorite video game adventurer with Smule’s Zeldarian mode.

SMule: Ocarina [Zeldarian] from Smule on Vimeo.

Via: Dagus-Wan Kenobeat