> Remember the diamond app when the iPhone first came out? It cost $999 and put a picture of a diamond on your phone…I doubt those guys made a ton of money, but I’m SURE they broke even

I'm sure they didn't, because when a customer requests a refund from Apple, Apple deduces the full price of the application from the developer's account.

They sold one, got their 70% cut (~$700), the buyer asked for a refund, $999 was deduced from their account, and they were ~$300 in the red. About that time, they removed the app from the store.