I am teaching my daughter to read and there are a lot of apps that are very useful for this! Please look for my other lists of reading apps!
This is a fun way to teach your child the alphabet. It features colored blocks with the letters on them. Touch the letters and an animal that begins with that letter will do a little dance.
Kids ABC Letter Phonics
This is the 2nd app in a 3 app curriculum (the first teaches letters, the third teaches small words). There are 4 games included that teach phonics.
Kids ABC Letters
This is the 1st app in a 3 app curriculum (the second teaches phonics, the third teaches small words). It will teach your child to name, form, and recognize letters as well as to identify them in context.
ABC for Kids
This app helps kids learn letters using pictures and then giving them a multiple choice about what that word begins with. Contains a learning mode and a quiz mode.
Trace and Learn
This app teaches kids the alphabet, numbers, and shapes through tracing! Great learning tool.