That’s because the magazine giant has been unable to get Apple to let it sell and manage subscriptions for its iPad apps–much to Time Inc.’s surprise.

Last month, the publisher was set to launch a subscription version of its Sports Illustrated iPad app, where consumers would download the magazines via Apple’s iTunes but would pay Time Inc. directly. But Apple rejected the app at the last minute, forcing the Time Warner (TWX) unit to sell single copies, using iTunes as a middleman, multiple sources tell me.

Since then, Time Inc. executives “have been going nuts,” trying to figure out how to get Apple (AAPL) to approve a subscription plan. One of the more desperate suggestions, which apparently didn’t get traction: Pulling the publisher’s apps out of the iTunes store altogether.

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