CNN.com’s Wes Finley-Price received the following statement from Apple spokesman Tom Neumayr:
Apple will not distribute applications that contain inappropriate content, such as pornography. The developer of this application added inappropriate content directly from their server after the application had been approved and distributed, and after the developer had subsequently been asked to remove some offensive content. This was a direct violation of the terms of the iPhone Developer Program. The application is no longer available on the App Store.
Full article here.