Skype has turned out to be one of Microsoft’s best investments. The popularity of the applications just means that the company has an amazing reach beyond its own devices, even into the world of iOS where Skype recently hit a new milestone.

Over the past few years, Skype has accrued over 120 million downloads on iOS devices. It’s popularity is immediately apparent on the iPhone where it sits as one of the top 10 free apps of all time. The company also notes that over 20 million photos have been shared on iOS devices via Skype since the feature launched a few months ago. Now the team at Skype is adding even more features to iOS to celebrate these milestones.

The biggest change to Skype on iOS has to do with Microsoft’s recent merger of its Live Messenger application into Skype. Those new to Skype can now simply log-in via their Microsoft account, and it will migrate all of your Messenger, Hotmail and Outlook.com contacts into Skype. Users can also create a brand new account right from the app.

Another addition is some changes to instant messaging on Skype. Users can now edit messages sent via the application so you no longer have to send another message correcting a previous typo. All you have to do is tap and hold onto a sent message to edit it. Skype users who have signed in via their Microsoft account can also send messages to their friends on Windows Live Messenger.

The final addition is the arrival of emoticons on Skype for iOS. Instead of simply typing in the emoticon, the Skype team has added a menu full of the expressive little guys for you to choose from. As an added bonus, those with retina display iOS devices will get animated emoticons.

You can grab the latest versions of Skype for iPhone and iPad right now at the iTunes App Store.