According to a new report, Apple and the developers which create and sell apps for the iPhone and iPod touch via the App Store, have lost over $450 million (£277 million) since it opened in July 2008.

Not long ago, App store announced its 3 billion download. While actually, between 13 per cent and 21 per cent of the three billion downloads were apps that were paid for. Lots of iPhone and iPod touch owners use hacking process “jailbreaking” to modify the phone’s operating system, install unofficial programs, and download and install apps that have not come from the App Store and for which they would otherwise have to pay. On a conservative estimate, paid for apps have a piracy rate of around 75 per cent and developer testimonials from companies have a piracy rate as high as 90 per cent for their games.

However, Apple has yet to take any action against app piracy, it may because the piracy of apps does not hurt Apple's bottom line that much –which is significantly bolstered by the money made form the sales of iPhones and iPod touches.