The code was designed to look like a stock price tracker, but was also able to steal data.
Experts said that the proof-of-concept program was a "significant threat" to the app store.
Apple declined to comment. It also removed the app and barred the developer from its store.
The software was created by security expert and hacker Charlie Miller to demonstrate Apple's vulnerabilities.
The firm accepted the program to its iTunes app store in September. Two months later Mr Miller revealed that it contained malware that could remotely download pictures and contacts.
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