Yes, the iPhone has been marketed with so many features that it might be lost to some that you can store your favorite tunes on it, too. With album artwork and easy use with the flick of a finger, you will want your music to sound as good as it's stored.
Altec Lansing has some excellent iPhone compatible headphones for your to enjoy. With an in-line microphone and controls, you will have all you need at your fingertips! The UHS-306's cost around $90 but after the initial investment on your iPhone, this won't be a big deal to you. Music should sound good.
These headphones feature cloth covered cords which keep knots from forming as often and allow you to untangle the cords if that does happen. The mic. on the right cord is placed level with your chin so that you can answer and complete calls utilizing these. Time to upgrade?
More information can be found here.