Cydia Store is new download-pay service for iPhone applications that are rejected by App Store for technical and content reasons. The creator of Cydia is Jay Freeman, a 27-year-old computer science doctoral student in Santa Barbara, Calif. The service will charge app developers no more than the commission Apple does for his site’s billing services (30%).

A big hurdle the Cydia Store is that the applications they offer typically only work on iPhones that are jailbroken to allow users to download unauthorized programs. Even Apple maintains that jailbreaking an iPhone violates copyright laws, jailbrake software created from Freeman is already tested and installed on about 1.7 million iPhones. This service will provide choice and new creative content available for iPhone, not just Apple controlled applications on App store.

Tags | Apple, Hardware, iPhone, Mobile