There is a part 1 of this article which i've posted here on my blog, but that was applicable when you're setting up via iTunes on a PC. Now, we're going to show how much more comfortable in setting up a new iTunes account using your, say, iPhone...
1. If your Apple ID is currently signed in, Go to
SETTINGS > STORE > and then sign out from there.
2. Once you've signed out. Launch your APP STORE application and choose to download a free application. (eg) Demotivation Pics
3. It will then prompt you to Create a New Apple ID (see image)
4. Hit the Create a New Apple ID and you're on your way in creating a new account. The default would be United States. DO NOT change this.
5. After you hit next, you will get enthralled by the Terms and Conditions
6. Make sure to hit "Agree" otherwise...
7. Then it will prompt you now to enter your email address, your desired password, and the security question. I would suggest for you to use Gmail.
8. Up next would be your mode of payment. The default is VISA but make sure to tap it so that you could change it to NONE.
9. Now, this is the tricky part - Your Billing Information and Billing Address. Given that you've selected NONE as your mode of payment, and remember that your store location was set to United States (remember step 4?), you must then provide a valid US address.
10. This is just an expanded fill in the blanks continuation part of step 9. Please make sure that the address is for real and existing in the US. The City, State, and the Zip code should all be matching.
ps: if you don't have a relative in the US, try asking el Goog
11. Another tricky part is the telephone number. This must be matching also with the United States City and State you've entered previously.
12. The rest is pretty self-explanatory. Just hit on next, and next and next until you get to the page where an email has been sent to your email address, please check your email and verify it.
After completing the process, go check your inputted email and verify your account by clicking the link. Once verification is completed. Relaunch your APP STORE and get wild in installing free applications without spending a cent.
Inevitably, you would still want to buy those paid applications such as the iDisk or your favorite Angry Birds full version, if this is the case, then please go back to SETTINGS > APP STORE and update your Billing Info by inputting your credit card details and the matching address where it was registered.
My deepest thanks to Froilan for shedding the light here, cuz all i thought was, you could not create a US Apple ID account using the iPhone alone. Now it was even easier.