Been there, done that
Gotta love a store manager on a power trip who comes out with the first excuse in his head to have a go at kids smarter than him - in this case, 'hacking'.
I'd hardly call downloading a game onto a phone hacking, and calling the police was a slight over reaction. Security, perhaps, to throw them out, but the police?!
I've done my share of things when I was young to annoy store staff... like setting BIOS /boot up passwords on computers, then beating a hasty retreat.
Just think, those boys could have been so persuaded by the fact that the iPhone could play that game that they'd buy it. Oh well, Apple's loss of some more Mactards *ahem* converts!