By the letter of the law, you’re mistaken.

it bears repeating that laws do not follow morality though, of course.

Personally: I find it deeply uncomfortable that nearly all tech seems to come out of the US, where sanctions and rules are applied unilaterally, with only relatively minor pushback.

I have even had issues supporting users when I was transitioning from bare-metal to cloud due to US sanctions blocking Cuba, Iran and a part of Ukraine (Crimea) which is nearly impossible for us to avoid selling our product to accidentally, dooming anyone living there to buy a product that can never work.

(The product was a multiplayer game)

It does not even matter whether you're coming from US. It matters whether you want to do any business in US or with US organizations.

The app store is a separate business than hardware. They don't have to delete already installed apps, but continuing to distribute them I imagine the US government definitely does have the power to stop.