Unlocked iPhones are in big trouble...

[Bazz]

...Apple issued a warning it would happen and now it has.

An Apple software update is disabling iPhones that have been unlocked by owners who wanted to choose which mobile network to use.

Full piece can be read here.

[mitchja]

I wonder what OFCOM's take will be on this [:?] As technically, as long as you have fulfilled your contract obligations, you are entitled to get your handset un-locked from your network.

Quote from the OFCOM web site:

Mobile Phones - Advice on switching your mobile phone supplier
Most mobile service providers require a minimum service period or contract term before you can switch to another provider. If you purchased your mobile phone with the service from your current provider, you have the option of keeping your current mobile phone, however you must make sure that you do that within the contractual terms of your existing mobile phone and service.

Whether you are a post-paid (contract) or pre-paid user, you can keep your current mobile phone by requesting that the SIM lock on your mobile to be removed. Usually, mobile service providers require a minimum contract or service period to expire before they unlock your phone. Most service providers charge a fee for this service

OK so this wont apply until you are past your initial 18 month contract period with O2 but what then [:?]

Most networks also dont actually charge you for unlocking handsets, as long as you have fulfilled your contract terms. Well at least V Mobile dont.

Regards

[Bazz]

Any iPhones in the UK will have originated in the US and I guess therefore that the OFCOM rules cannot cover those phones.

Once iPhones are sold in the UK officially and the original contract term has been served, then that will be a different kettle of fish.

As expected the new update bricked iPhones with any type of hacking on them, however hackers have already engineered a way of unbricking the phones by restoring it back to the previous update. It's only a matter of time before the new update gets hacked.

Originally posted by VS-EWR
As expected the new update bricked iPhones with any type of hacking on them, however hackers have already engineered a way of unbricking the phones by restoring it back to the previous update. It's only a matter of time before the new update gets hacked.

Agree - just look at hacking on games consoles. I have a very reliable hacked PSP and Xbox, and follow the hacking gossip of all the games consoles with interest. There are some mighty skillful people out there. I'm sure bricked iPhones won't be bricked for long.

[Pete]

Looking at the other side of the coin, by hacking the phone, you broke your side of the contract with Apple. That's fine - and I would be the first to argue that you can do anything you want with a piece of technology that you bought outright, but then you probably should continue to download software updates if you're using a phone that has been modified to work outside the user agreement.

If you want the new features, work within the rules, perhaps?

[RichardMannion]

Interesting tilt though - what is the finance breakpoint fo them doing this?

Are they selling the devices in store (at $400) at a loss, given that the word on the telco street is that they get $150 +10% of subscriber revenue (for the US market). Knowing Apple, I would say no, they are still making a healthy cut on the $400 price poitn anyway. So is that pressure from ATT to release an update?

I personally think Apple is in unchartered territory already with customer reputation given the 33% price cut after less than 60 days. If there is one group of customers you don't want to piss off, its your early adopters/influencers. We all knew the price point would fall, but that quick? Apple basically took advantage of the market and made a very quick $100m minimum (assuming all people take advantage of the $100 store credit), which is a master strok as people are likely to spend more anyway, so net gain is easily $150m.

Thanks,
Richard

Have the plastic windows broken, or the hard drive crashed, or the battery died yet on these Apples?
Surely they have been out long enough now for Apple to have to do a recall on them as with all their other "futuristic" gadgets?? [}:)][:o)][:o)]

[RichardMannion]

and for further laughs, I've jsut seen the T&C's for the $100 store credit:

Customers may not redeem their store credits: (1) at any iTunes Store in the United States or elsewhere, (2) Apple Store locations outside the United States; (3) at Apple resellers; (4) for cash; (5) to purchase Apple Gift Cards, or,iTunes Store Gift Certificates, to give iTunes Store content as gifts, or to create iTunes Store allowances; or (6) as payments on Apple accounts. Customers may not resell, transfer, or otherwise assign the credits.

http://www.apple.com/iphone/storecredit/

Obviously the profit margin on iTunes is not great enough for them.

To me Apple haven't researched the mobile phone market - in particular the UK - properly enough to realise that phone unlocking is a common thing and by forcing UK customers to commit to o2 isn't exactly one of their better decisions. [:?]

Maybe if they offered the iPhone to all network providers then this wouldn't be as big of an issue as it is now.

[Pete]

I think the same was previously true of the US market too. I've read plenty of anti-iPhone comments, but you can't argue that it has been the most successful product launch this century.

I suspect I'm typical of the phone market. I've stuck with the same provider for years (Orange), although there's no real brand loyalty, and if I could get a better deal elsewhere (and if Orange weren't prepared to match it), I'd switch. I see the iPhone as something I want, and quite happy to move to O2 to get it. From a technical point of view, it'll probably give me a slight improvement on network coverage, as O2 is slightly better than Orange. If Apple had gone with T-Mobile, on the other hand, I'd be more concerned that I wouldn't be able to get a signal everywhere

Originally posted by Pete
Looking at the other side of the coin, by hacking the phone, you broke your side of the contract with Apple. That's fine - and I would be the first to argue that you can do anything you want with a piece of technology that you bought outright, but then you probably should continue to download software updates if you're using a phone that has been modified to work outside the user agreement.

If you want the new features, work within the rules, perhaps?

Pretty much the rule with hacked games consoles - steer well clear of firmware upgrades and online gaming services. Of course you loose out on functionality improvements and online gaming... and of course hacking to play copy games is very very bad anyway, and you should suffer all the wrath of the games companies.


Now, at least my shiny new Nokia N95, bought unlocked in Singapore direct from Nokia needs me to manually instigate upgrades on it. Not that Symbain needs any hacking anyway.

[Bazz]

Just stumbled across this interesting piece on CNet.

[Darren Wheeler]

It will be intersting to see if the European Commission take any action over the locking. It could be argued that the decision is anti-competition because of the Apple-approved chip requirements and all the other locks in place. Microsoft got into huge trouble over the Media Player.

[Pete]

Originally posted by Darren Wheeler
It will be intersting to see if the European Commission take any action over the locking. It could be argued that the decision is anti-competition because of the Apple-approved chip requirements and all the other locks in place. Microsoft got into huge trouble over the Media Player.

I suppose it depends whether anyone wants to push for that to happen. Having read some of the in-depth articles about whether a class action in the US would be likely to succeed, it sounds like Apple have kept themselves on just the right side of legal action.

There's a world of difference between the anti-competitive behaviour of Microsoft with a dominant platform like Windows, and the choice of Apple to offer a new product in a crowded market with only one partner.

Originally posted by Bazz
Any iPhones in the UK will have originated in the US and I guess therefore that the OFCOM rules cannot cover those phones.

Once iPhones are sold in the UK officially and the original contract term has been served, then that will be a different kettle of fish.

Doesn't the rule apply to the operator not the phone manufacturer? So irrespective of country of make O2 customers should have the right to switch?

[Bazz]

The iPhone is not yet officially on sale in the UK so any of them will be personal or gray imports, not covered by the legislation. When 02 start selling the iPhone contracts on the 9th November the legislation will apply, once the original contract term has run it's course.