The iPhone did not even launch with an app store, its launch concept was 100% web apps. In 2007 web apps were severely limited in performance and functionality

The iPhone did not even launch with an app store, its launch concept was 100% web apps. In 2007 web apps were severely limited in performance and functionality, so this wasn't remotely feasible for most apps. I still believe Apple's original plan was a console model where hand-picked partners would get the secret native API. Then they realized the demand for native apps was much greater than they had anticipated, and decided to take a 30% cut from millions of developers rather than large licensing fees from a few.