After painful tears and sacrificing countless kittens to Cthulhu I found how to make ipa (iPhone Application) package size smaller.
So there are things i found out, and hopefully you can benefit from:
When unreal editor creates iPA it does not use any good compression method on ipa file which is just install folder compressed with zip.
So to make ipa size about half of what it is just rename ipa to zip, unpack it, and compress again with best compression (winrar or 7zip have nice compression)
This way i could shrink my package from 110mb to 56mb.
To deploy such package to your device you can use command line tool: "c:\unreal\Epic Games\4.7\Engine\Binaries\DotNET\IOS\DeploymentServer.exe" Install -ipa c:\IOS\YourAwesomeGame.ipa Also you can squeeze few more mb by replacing all png files in: ..\Payload\UE4Game.app\cookeddata\engine\ inside ipa packagge.
With 2x2 pixel png files.
Btw. I did not try to deploy such compressed package to itunes connect yet, but it all works fine on iphone devices when you deploy it directly to device (with above command).
This is what i got from apfel:
The app binary listed below was 62.8 MB when you submitted it, but will be 108.6 MB once processed for the App Store. This exceeds the cellular network download size limit and would require your app to be downloaded over Wi-Fi: "
So packing app with better compression does not work, they insist on packing with almost no compression.