Replit CEO Says Apple's App Store Block Justification Is a 'Total Lie'

Replit CEO Amjad Masad isn't backing down from Apple. After months of being blocked in App Store review, the head of the AI coding platform says he's willing to take the company to court, disputing what he described as false claims that its app downloads new code post-approval.



Speaking Thursday at TechCrunch's StrictlyVC event in San Francisco, Masad pushed back against Apple's reasoning for blocking the app. He called the justification a lie he's prepared to prove in court. He added that Replit has submitted updated builds repeatedly during that period, with no clear feedback from Apple during the review process. The dispute comes as rival app-building tools like Lovable have recently secured App Store approval.


Masad suspects the real issue is that Replit allows users to build and deploy their own iOS apps from their phones, a capability introduced last December that challenges traditional development workflows. Charts circulating at the time showed how many apps were being created through Replit, which he believes may have contributed to Apple's concerns. The standoff echoes a familiar pattern for Cupertino, which recently faced a lawsuit from another AI startup alleging arbitrary App Store enforcement.

Despite the possibility of litigation, Masad noted he would prefer to collaborate and is even willing to route developers toward Xcode if necessary. Losing the iOS app wouldn't sink the company, he added, pointing to massive recent growth. Replit has surged from $2.8 million in 2024 revenue to tracking toward a $1 billion annual run rate. The platform is now used by 85% of Fortune 500 companies, according to Masad, with adoption continuing to expand rapidly.

That financial health gives Masad the leverage to remain independent, having maintained positive gross margins for over a year. He said Replit's net revenue retention can reach as high as 300% in some cases, reflecting how customers expand usage after initial adoption. He drew a sharp contrast with rival Cursor, which is reportedly operating at negative 23% margins as it explores a massive $60 billion acquisition by SpaceX.

He also emphasized Replit's positioning as a full-stack platform, arguing that its integrated approach offers security advantages over competing "vibe coding" tools. Applications run in isolated environments on Google Cloud, with databases kept private rather than exposed publicly. The company has spent years building internal safeguards against abuse and attacks, and Masad said that architecture has become a key selling point in enterprise deals, particularly when evaluated by IT and security teams.


Under the hood, Replit relies on a mix of third-party AI models to power its agentic coding features. Masad ranked Anthropic as the current leader for tool calling and keeping agents coherent. He also highlighted Google's Flash models for their cost efficiency, while noting OpenAI's GPT models are catching up quickly. In those deployments, Masad said some customers generate millions in value from relatively modest monthly spend.

Looking ahead, Replit is considering taking equity stakes in the startups built on its platform to capitalize on the heavy enterprise and developer adoption happening within its cloud environment.