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In this tutorial, Skylar demonstrates using the Notes app on iPad, noting that it does not support rich text formatting such as bold or underlined text. To format text, he suggests using the Mail app, where users can highlight text and apply bold, underline, and italics. Skylar then recommends Evernote as a preferred notetaking application due to its rich text functionality and ability to sync across multiple devices. He shows how to create a new note in Evernote, highlighting its controls that allow for easy text formatting, including adding headings and modifying text styles seamlessly.