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While Apple has lately appeared to have improved its App Store approval process, there are still some decidedly rough edges. Take the case of MyFrame, a digital photo frame app for the iPad: the program was removed from the App Store this week for somewhat murky reasons, according to the developer.

Russell Ivanovic, a developer for MyFrame’s Groundhog Software, reported that the company received a phone call from an Apple employee about the program’s removal. The employee said that the app was being removed as part of a wholesale removal of “widget” apps from the store. MyFrame allows users to put overlays their photos with the time, weather, music controls, sticky notes, and more.

Furthermore, not only had MyFrame been on the App Store for some time, but Apple had already approved multiple updates to the program without any flags being raised. While Groundhog is primarily a Java enterprise developer, the company had recently branched out onto Apple’s platform with its first app, Tennis Stats; MyFrame was only its second application.

No specific prohibition on “widget” apps appears in Apple’s developer agreement, unlike the well publicized—if murky—bans on pornographic or malicious content. Groundhog was not told what it could do to fix the program and resubmit it, or to whom it could appeal the decision.

“It’s a lot harder to invest time and money in a platform when the risk is that even after your application is developed it can still be removed,” Ivanovic told Macworld by e-mail. “Not for violating existing rules, but for violating new rules that Apple makes up after the fact.”

Ivanovic also penned an e-mail missive to Steve Jobs, and received a reply reading only:

We are not allowing apps that create their own desktops. Sorry.

The response would seem to suggest that Apple is targeting applications that mimic a desktop computing environment, possibly in advance of the release of iPhone OS 4.0, which includes multitasking capabilities. Similar apps, such as Desktop for iPad, appear to likewise have disappeared from the store.

“We only want two things from Apple,” said Groundhog CEO Grant Steinberg in a separate e-mail. “Clarity and consistency. That’s it, then let us do our job and ultimately the customer will decide if we did it well.”

Apple’s developer agreement does say the company can remove applications for reasons not covered in the document, which understandably makes many developers uncomfortable. MyFrame was an established product that was removed with no warning, and there’s no other option for Groundhog to distribute the app as is, short of porting the entire program to another platform like Android, which would require a not insignificant amount of time and effort.

And the MyFrame situation isn’t about to ingratiate Apple with developers at large. Ivanovic had penned a previous post largely supportive of many of Apple’s decisions about the App Store; needless to say, he’s rethinking that position in light of MyFrame’s treatment.

“I suspect this will make us a lot more cautious in future, especially when it comes to releasing new applications,” Ivanovic said.

It’s not a far stretch to say that many other developers might undergo a similar conversion should they find their own products in Apple’s crosshairs.

As the iPhone is poised to take the spotlight at next week’s Worldwide Developer Conference, it’s certainly bad timing for Apple to have these continuing issues once again brought to the forefront. And despite the anticipation that has built for iPhone 4.0, addressing concerns about the App Store would be a welcome development.

LONDON/PARIS (Reuters) –
Fans mobbed Apple Inc stores in Europe and Asia as the iPad went on sale outside the United States on Friday, with some shoppers having queued all night to buy one of the coveted tablet computers.

The device, a little smaller than a regular notebook computer and with an open, color touchscreen, is designed for surfing the Web, watching movies and reading, and has been hailed by the publishing industry as a potential life-saver.

Shares of Apple, which also makes the iPod and iPhone, jumped as much as 2.3 percent before settling back to end the session up 1.4 percent, outpacing a sliding market. Analysts said Wall Street had already priced in a big launch.

The iPad’s debut sets the stage for Apple to possibly unveil the latest version of its iPhone. Chief Executive Steve Jobs — keeping up a hectic public schedule after undergoing a liver transplant last year — is expected to reveal a new iPhone with multi-tasking features on June 7 during an annual developers’ conference.

Apple sold a million iPads in the United States in the first month after its April 3 debut, exceeding the most bullish pre-launch estimates. Demand was so heavy that the company delayed the international launch.

RBC Capital Markets estimated iPad’s total shipments will reach 8.13 million units worldwide by the end of the year — which would translate into at least $4 billion of revenue.

“I wanted to touch it as soon as possible. I felt real excitement when it was finally in my hands,” said Takechiyo Yamanaka, 19, who had camped out in front of Tokyo’s flagship Apple store from Wednesday evening to be the first in line.

“It’s a bit of a gut decision, an emotional decision, because it’s not really rationally justifiable,” said Anna Kistner as she emerged from the Apple store in Munich, Germany with two iPads. “It’s a lot of money.”

The iPad is now on sale in Germany, France, Italy, Switzerland, Spain, Britain, Japan, Australia and Canada.

Prices for the cheapest, Wi-Fi-only version range from $499 in the United States to the equivalent of $617 in Britain.

The buzz around the iPad helped propel Apple past Microsoft this week to become the world’s most valuable technology stock, marking a remarkable turnaround of a company that nearly went out of business in the 1990s.

CREATING A NEED

Apple now gets almost three-fifths of its revenue outside the United States, and it is counting on its base of fans who already own an iPod, iPhone or Mac to add the iPad to their collection as rivals line up with their own tablets.

Analysts said Friday’s muted stock reaction came after a build-up of anticipation ahead of the international roll-out, which will be followed in July with launches in about another nine countries, including Hong Kong and Singapore.

On Friday, Bank of America-Merrill Lynch raised its price target on Apple to $325 on hopes of better-than-expected sales of the iPhone and the iPad, plus better margins on the tablet than Wall Street is expecting.

Some analysts highlight concerns that Apple, which contracts out the production of the device and depends on numerous parts suppliers, may have trouble satisfying the surge in demand, driving buyers elsewhere. Dell’s Streak tablet computer will go on sale next month in Britain. Sony Corp and Hewlett-Packard also have tablets in the works.

The iPad — like other tablets — may rely on a greater proportion of novel components that are not commoditized, potentially making a ramp-up of production more difficult, analysts say.

But “Apple has traditionally been pretty good about overcoming these constraints in time,” said Oppenheimer’s Yair Reiner. “The question is, will there be a point where it will lose sales? For that to happen, companies with have to come up with products that are comparable.”

Just ask Pascal Lordon, among the first in line at the flagship Apple store beneath the Louvre in Paris. He already has all Apple’s products and described himself as a big fan.

“The iPhone created a new need, but the screen is small. The iPad is more comfortable — it has a real screen,” said the 51-year-old, who works in video editing.

Others were less manic about the Apple brand.

“I’m not going to buy the iPad now as it’s expensive. And I’m a Sony fan,” said Kengo Nakajima, a 19-year-old college student who waited in line with his friend Yamanaka at the Apple store in Tokyo’s Ginza shopping district.

Amazon, whose Kindle e-book reader is seen as a rival to the iPad, said it would be offering its Kindle iPad application in all countries where the iPad was now on sale.

Analysts at research firm Informa Telecoms & Media believe most iPad sales would be of Wi-Fi only models, citing the limited case for outdoor usage, higher prices for 3G models and the ability to tether the iPad to a mobile phone as reasons.

At London’s Apple store, a circus-like atmosphere prevailed.

“Jake! Jake! Jake!” store staff chanted as Jake Lee, a 17 year-old student who had waited 20 hours, entered.

British actor and technophile Stephen Fry said Apple had proved the skeptics wrong. “Whenever Apple comes up with a new product, the initial response … is always negative, because no one can quite believe it can happen again,” he told Reuters.

Apple has yet to announce a launch date for mainland China, which could prove a much more difficult market to crack. Bootleg versions of the gadget are being snapped up online and in retail malls in the piracy-prone country.

Retailer Best Buy said it was restricting sales at its two British outlets to one iPad per household.

Michito Kimura, a senior analyst at IDC Japan, said the test would come after the honeymoon period.

“The real game will start after ‘core users’ have the devices. I imagine a price cut may be necessary before the Christmas holiday season to stimulate demand.”

(Additional reporting by Alexei Oreskovic and Edwin Chan in San Francisco, Jens Hack in Munich, Valle Aviles in London and Nobuhiro Kubo in Tokyo)

(Writing by Georgina Prodhan; Editing by Hans Peters, Steve Orlofsky and Robert MacMillan)

TOKYO (Reuters) –
Apple Inc’s iPad made its overseas debut on Friday, with buyers storming Japanese and Australian shops to be among the first outside the United States to snap up the long-awaited tablet PC.

The device, which has a 9.7-inch color touchscreen for surfing the Web, watching movies, playing games and reading e-books, also goes on sale in Germany, France, Italy, Switzerland, Spain, the UK and Canada later on Friday.

At Apple’s flagship store in Tokyo’s Ginza shopping district, about 1,200 people lined up before the store opened at 8 a.m.

“I wanted to touch it as soon as possible. I felt a true excitement when it was finally in my hands,” said Takechiyo Yamanaka, a 19-year-old who camped out in front of the Ginza store from Wednesday evening to be the first in line.

Apple has sold a million iPads in the U.S. since its April 3 debut, exceeding even the most bullish pre-launch estimates. Demand was so heavy the company had to delay the international roll-out by a month.

Enthusiasm for the iPad in Japan, the world’s second-largest economy, is good news for Apple as international sales are increasingly important for the maker of the Macintosh computer and iPhone.

An iPad model with 16 gigabytes of memory and WiFi-capability is selling for 48,800 yen ($537) in Japan, compared with $499 in the U.S.

Apple gets almost three-fifths of its revenue from overseas now, and is seeing stunning growth in Europe and Asia.

On Wednesday, Apple shot past Microsoft Corp as the world’s biggest technology company based on market value, the latest milestone in the resurgence of the maker of the iPhone, which nearly went out of business in the 1990s.

SALES GALLOP

Analysts said the iPad was sure to match the success seen in the U.S. in overseas markets, helped by a large base of Apple fans who already own the iPod or iPhone.

RBC Capital Markets estimates iPad’s total shipments will reach 8.13 million units worldwide by the end of this year. Apple does not provide iPad sales forecasts.

But analysts also warned Apple may struggle to supply enough of the device and noted competition from faces a spate of competitors set to significantly expand the number of rival offerings in the tablet market this year.

“It’s a little bit hard to say because there’s still going to be supply constraint, but I’m expecting them to sell every single thing they can ship,” Andy Hargreaves, a U.S.-based analyst at Pacific Crest Securities, said ahead of the overseas launch.

On Tuesday, Dell unveiled its Streak tablet computer that can double as a mobile phone and will have a front-facing camera for videoconferencing. Sony Corp said on Thursday it would launch an e-reader in Japan by year-end.

Application providers and telecoms firms in Japan are closely watching the arrival of iPad for business opportunities.

In Japan, where 476,000 iPads are expected to be shipped this year, according to RBC, Apple suspended taking pre-orders of the device after only three days due to a supply shortage.

Dentsu Inc, Japan’s top advertising firm, which operates an online book store to distribute magazines such as Newsweek Japan to smart phones including the iPhone, plans to distribute content to the iPad.

NTT Docomo, Japan’s biggest mobile phone operator, will sell wireless LAN routers for the iPad’s Wi-Fi connection next month to rival No.3 operator Softbank, which exclusively provides 3G networks for iPad.

(Additional reporting Alexei Oreskovic and Edwin Chan; Editing by Anshuman Daga)