I'm relatively certain that the entity "embed" isn't really compatible with the mobile safari browser. Although, you could just use a <noembed> tag.. then you could just link to the file and they can play it through the default media player. It would look like this:
Code:
<!-- You can see that I didn't close off the "embed" tag and instead did it shorthand with this little '/' thing -->
<embed src="../notify.wav" autostart="true" width="0" height="0" />
<noembed>
You're on iPhone! Click here to play the sound:
<A HREF="../notify.wav">NOTIFY!</A>
</noembed>
But it seems that you're trying to make it play automatically..?
So in that situation, you could normally use some javascript to play the sound on mousover, but because the iPhone doesn't support mouseover, flash, or embed entities, the only way to do this is via link. Sorry to let you down like that, but mobile Safari isn't that great.. Once they have a flash support for it, I think you'll be in luck.