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Another Apple App Store Disaster

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Apple (Nasdaq: AAPL  ) has pulled one of the more popular third-party offerings from its App Store, after developer tap tap tap revealed a secret feature on its Camera+ program that runs afoul of Apple's rules.

MobileCrunch and several other Apple-centric blogs are reporting that Apple nixed the $1.99 photo-shooting enhancer after the developer sent Twitter followers instructions on unlocking an Easter egg in the program, which allows shutterbugs to use the device's volume keys to snap a photo.

Brilliant feature, right? One of the iPhone's awkward shortcomings -- beyond the latest model's antenna troubles -- is the need to snap a digital photo by using the touchscreen viewfinder itself. Having physical controls on the side is more conventional.

Unfortunately, Apple doesn't see it that way. Developers aren't allowed to tweak those controls, and tap tap tap has to know that. Why else would it slyly reveal the feature, instead of bragging about it in the App Store description?

Earlier this week, tap tap tap revealed in its own blog that it racked up sales of $507,221 of Camera+ during its first two months on the market. That's a lot of money being made in a competitive storefront, especially amid countless free ad-supported alternatives.

Something's got to give at this point. Apple is too big and popular to cave in to circumventing developers, but it has to respect that it would not be where it is today without third-party tinkerers.

Google's (Nasdaq: GOOG  ) collective of Android phones outsold Apple during the first quarter of the year. Research In Motion (Nasdaq: RIMM  ) still has more BlackBerry devices on the market. Nokia (NYSE: NOK  ) remains the global handset leader. Microsoft's (Nasdaq: MSFT  ) Windows Phone 7 is late to the party, but don't underestimate the software giant's resources if Mr. Softy decides to catch up in a hurry.

Right now, the App Store is the marketplace of choice for most mobile developers, but Android's open-source nature is catching on. Everyone else may be off in the distance, but they won't always stay there.

Apple has routinely come under fire for the programs it rejects -- or occasionally, the ones that get through. However, pulling an app that Apple itself has featured is a risky move. If Apple's user base decides that it wants an iPhone's volume buttons to be more than volume buttons, it can't be good business to rain on that parade. Isn't "the customer's always right" the reason why Apple is handing out free bumpers to iPhone 4 owners?

Surely, the developer can't always be wrong. Rules are important, but following them too ruthlessly may become the undoing of Apple's App Store.

Is Apple too strict with its App Store rules? Share your thoughts in the comment box below.

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Microsoft and Nokia are Motley Fool Inside Value picks. Google is a Motley Fool Rule Breakers choice. Apple is a Motley Fool Stock Advisor selection. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz loves splashing around in the App Store, though he usually favors free applications. He does not own shares in any of the stocks in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool's disclosure policy knows that roaming charges weren't billed in a day.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 13, 2010, at 4:47 AM, Wesss wrote:

    What is with the bizarre anti-Apple bias of the Fool? It's jarring: In the middle of a phenomenal stock run by what is regarded as one of the great brands of the world we mostly get "Steve Jobs is a liar" and "App store disaster" articles.

    Most coverage by the Fool is interesting, balanced, and helpful. But every few weeks Anders Bylund throws in some oddball extremist complaint article about Apple.

    We need insight and guidance in today's volatile market. Rick is one of the writers I follow most, but a tiny kerfuffle over how you snap a cell phone picture isn't exactly worth an AAPL headline, is it?

  • Report this Comment On August 13, 2010, at 8:50 AM, Silverkinggames wrote:

    @ Wesss:

    Maybe you don't know it but while the general masses and financial pundits think Apple (AAPL) is good many in the tech world dislike them. When Apple ran their "I'm a Mac" commercials they portrayed a easy to use and better built system than Microsoft and the pc makers were able to make. Well, people found out that it was easier to use because it was more restrictive and since then pc makers have increased their product quality (ex. Dell Adamo). People were willing to deal with restrictions when Apple was the only company making something close to what they wanted. As time goes on though other companies do it better and give the customers the freedom they want to customize. Apple tries to limit its vulnerability to viruses and hacks by keeping its products as close sourced as possible. From a financial standpoint sticking with Apple just because it is(maybe was?) in a upward stock run without looking at the changing market is foolish. If Apple continues its run of decisions that reduce perceived value of its products it will stop making the money everyone wants a piece of. I hope you are willing to open your eyes then and short AAPL so you don't lose your money.

  • Report this Comment On August 15, 2010, at 12:01 PM, Wesss wrote:

    @silverkinggames,

    I understand your points, but please note that my email had really nothing to do with Apple products or how they compare with competitors, etc.

    I no longer own AAPL, but made a lot of money off this brand that gets an inordinate amount of cheap shots by the TMF writers.

    My only point is about this odd negativity from TMF. I only have a few apps from the APP Store, but it's pretty clearly an impressive idea and innovative financial success. But the weird TMF bias has them writing about "another disaster" like this is some crappy, disaster-filled flop.

    If the screen stays the same, look below at their other articles: "Apple's iPhone is broken", "...PR fiasco..." "dumbest stock moves". It goes on and on and subscribers deserve better analysis.

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