Developed by Mystic Game Development (MGD), the app does just about what the name implies. When you shake your iPhone or iPod Touch, you also shake an animated image of a woman's chest.
Apple told the developer it was "inappropriate sexual content," according to PCWorld.com.
But MGD Development Director John van der Burg said, "Watching an episode of Baywatch on TV shows a lot more than iBoobs. Besides that, iBoobs is just a 3-D model and not even real."
The developer behind "Slasher" was also told his app was out of line.
Created by Josef Wankerl of Austin, Texas, the app displays a kitchen knife on the screen and plays the "horror" sound when you make a stabbing motion with the phone or iPod Touch.
He said it appeared August 6 but was yanked August 7.
Apple told him it violated the part of the guidelines that objected to "obscene, pornographic, offensive or defamatory content," he said.
"I have no problem with people objecting to 'Slasher.' After all, everyone has their own personal taste. I do have a problem with the App Store refusing to publish 'Slasher' because they don't like it," he wrote to ABCNews.com in an e-mail.
He also said it bothers him that other approved Apps could also be seen as obscene or offensive. "Bar Fight Bottle," for example, lets you pretend to smash a bottle with your phone and other apps serve as pretend pistols, shot guns and ray guns.
He said he improved the app and was told, upon resubmitting it, that it had been approved. But despite weeks of e-mails, the status still says "Removed from Sale."
Although Apple is notoriously tight-lipped in its external relationships, one intrepid developer was able to get none other than the man behind the curtain, co-founder Steve Jobs himself, to weigh in on his rejection.
Almost on a whim, Alec Vance and Court Batson submitted "Freedom Time" to the App Store gatekeepers last summer.
"It's been a long eight years, but a new dawn is coming to America and the world. Our long international nightmare is almost over," the pair wrote on their company Juggleware LLC's Web site.
"In anticipation of that sweet moment," the company unveiled its app that gave a precise (to the tenth of a second) countdown to the inauguration of President Obama and the end of the Bush administration.
But Apple wouldn't have any of it.
"I thought there was a decent chance they would reject it but it was a chance I was willing to take," Vance told ABCNews.com. "I was disappointed."
He said Apple told him the app was defamatory. But Vance disagreed and decided to let the company's CEO know about it.
Surprisingly, Jobs wrote back: "Even though my personal political leanings are democratic, I think this app will be offensive to roughly half our customers. What's the point? Steve"
Vance wasn't entirely pleased with the company but was impressed by the CEO and took it as a good omen, he said.