After receiving "numerous complaints" from customers, Apple has decided to pull the plug on its application called Wobble iBoobs.
The application that let users to watch breasts bounce was said to have earned more than 150,000 pounds.
Developer ChilliFresh said Apple originally deemed it suitable for distribution but had now changed its guidelines.
"We have decided to remove any overtly sexual content from the App Store, which includes your application," Sky News quoted Apple as saying.
But ChilliFresh questioned: "How can it be overtly sexual, people use their own pics."
In a statement on its website, it added: "They have changed their standards, but they don't actually say what those standards are now, nor what those standards were before! No guidelines provided at all!"
Apple's decision to remove the application was also said to have drawn criticism from some technology commentators.
Marc Flores from Mobilecrunch.com said: "What Wobble iBoobs did was simple: you take an image of your choice (say, a bikini-clad girl from Safari on iPhone), mark the boobs within the app, shake your phone and watch them bounce and wobble.
"That's it. It didn't contain any porn, there were no preloaded images and it was on the market long enough to make more than pocket change."
Another commentator, David Holland from electricpig.co.uk, told Sky News Online that Apple "needs to put down concise guidelines about what is appropriate".
He also said that there were still other apps like "Epic Boobs", "College Boobs" and "Asian Boobs" that were available.