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Sticker Story - The storybook creativity kit for kids

30hands: Create & Show What You Know iTunes Description: 30hands Mobile is a fun, innovative storytelling app that allows students, teachers and anyone with creativity to easily create narrated stories or presentations based on photos, images, drawings or video clips using an iPad, iPhone or iPod.

30hands Pro: Create & Show What You Know

Superhero Comic Book Maker - a great iOS app for creating a digital comic ideal for storytelling

Superhero Comic Book Maker - by Duck Duck Moose

Shadow Puppet - a nice iOS app for recording voice to a puppet to tell a story

Shadow Puppet on the App Store on iTunes