I have reviewed lots of great apps for storytelling already but just came across Scibble Press a few days ago. This free app makes it easy for children to create their own story and includes 50 templates to help make the process easier. Kids can choose to create their own story from scratch or choose one of the pre-made themes and fill in the blanks for their story. They then get to illustrate their story by choosing from more than 500 drawing tools.
The app will be updated in a few days to make it possible for children to order copies of the books they create. A great way to encourage children to engage in creative writing.