Filed under: Analysis / Opinion, Hardware, Rumors
Rumor: Apple iPhone could be sold unlocked?
Any and every rumor is in the air about the iPhone these days, but this one is probably the first of the recent batch that sounds pretty interesting. The mobile phone market is a pretty tough customer - carriers need to lock their customers down, and there are plenty of handset makers who already have large stakes in their turf. Apple has already stepped up to bat - twice - by trying to partner with one of those handset makers, and I think it'd be difficult to argue that they got anywhere past even first base.Considering Apple's strengths - making great hardware and software - in light of their past failures in working with Motorola in this space, it seems entirely plausible for the company to aim for the stands on their third time at bat. By both developing and - this is the key - selling the iPhone all on their own, Apple not only gets to design everything their way, but they get to sell it to a much broader audience by offering it as an unlocked device through their own retail stores, rather than as a subsidized tool to force customers to either sign or break contracts, depending on their circumstances. This means Apple gets to flex their engineering muscles and rake 100% of their own profits - not a bad prospect for a company who is used to working solo in the hardware department, and by now is probably feeling the heat from sexy music handsets like Verizon's Chocolate.
For now, however, this is simply my attempt at applying some logic to a rumor. It sounds possible, but only January's Macworld (or 'the first half of next year') can provide anything to bank on.
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Reader Comments (Page 1 of 3)
arkowi said 2:27PM on 11-18-2006
i had to buy out of my cingular contract, becuase I moved somewhere where I did not have service.
If I have to buy out of my verizon contract when I move this summer to get an I phone...well...I will not be happy.
I am pretty sure if Apple does just sell them unlocked they are going to be GSM which means BYE BYE verizon unless they get their act together.
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Tom said 2:30PM on 11-18-2006
Well I certainly hope it's true. Not that I'm eager to get one of these phones necessarily but it's high time mobile phone manufacturers started selling unlocked phones anyway. It's just a huge scam that the carriers have with locking us in to their system, and at times locking functions of those phones too. Personally there isn't a phone out there that would sway me from using the carrier I have to another. That seems absurd to me. But I believe its time consumers should be able to choose whatever phone they want and use whichever carrier they want. It's a big scam that needs to be broken. If Apple start selling their own unlocked phone you can be sure that it will have an effect on the rest of the industry.
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idude135 said 2:38PM on 11-18-2006
Arkowi, there is a way to have wireless carriers rescind your cell phone contract, due to lack of coverage. Just make sure you sound very angry and dissapointed when you speak to CS.
Heck, you can tell them you'll file complaints with FTC and BBB. Oh, and always ask to speak to the supervisor to milk out the most you can.
If you're insistent enough, you can save yourself $200+ in early termination fees and save up for you-know-what.
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kontorhotel said 2:40PM on 11-18-2006
I hope this ipodhone comes to denmark soon,, i cant wait.. locked or unlocked.. i dont care.. i just want it ..
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M-A. said 2:44PM on 11-18-2006
The iPhone MUST be unlocked. They'll sell so much more if they do. I for one will certainly buy it if it's unlocked.
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Thayne Miller said 2:51PM on 11-18-2006
what does "unlocked" mean exactly? That I can use the phone with any carrier? There's no way the carriers would allow that. Am I missing something?
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Thomas De Groote said 5:01PM on 11-18-2006
In Belgium all phones have to be unlocked. That means we don't get them for free with contracts, but at least we can swap providers when we want and keep the phone.
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matthew said 3:02PM on 11-18-2006
The only thing is most people get their phones subsidized with a contract or renewal, often for free or under $100. If Apple was just selling the phone by themselves then they'd have to charge quite a bit more to make a profit... Or am I missing something?
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l0ne said 5:29AM on 11-19-2006
Not selling the phone unlocked would make it a no-show in every place of the world outside the US. Carriers don't "need" to lock down phones; in fact, there are LOTS of markets (every country in Europe, Japan...) where the main market for phones is for the unlocked models. Throw away the old phone, move the SIM to the new phone, and you're set.
It's an expectation. Not even H3G, the only operator in my country selling locked-down phones, dares remove any features from the phone (it's carrier lock only and even then the lock can be broken after one year of use).
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Kristen said 3:08PM on 11-18-2006
Thayne: an unlocked GSM phone can be used on any GSM network (Cellular One, T-Mobile, etc). The carrier has no say in it. I'm using a magenta T-Mobile Razr on Cellular One. All I had to do was pop my Cellular One sim card into the phone and I was set.
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Thayne Miller said 3:11PM on 11-18-2006
so is using an unlocked phone LEGAL? Or rather, does it violate the terms of agreement with your cellular provider's contract? (not that *I* care, but if it did, Apple certainly couldn't endorse it).
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V. Mardian said 3:12PM on 11-18-2006
From the original article:
"One of the rather interesting marketing aspects I've read about is the idea that the iPhone won't be tied to any specific carrier. "
Is this a rumor, or just pure speculation?
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P. said 3:15PM on 11-18-2006
In Belgium, locking phones is illegal, so I sure hope they sell them unlocked...
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eggstone said 3:20PM on 11-18-2006
Every phone sold in China is un-locked, according to Kristen's explaination. When I came to the States, I am just amazed to find that there are locked phones existing in the market....
Locked phones just DO NOT make sence at all!(from a consumer's perspective)
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Tom said 3:20PM on 11-18-2006
#7 Matthew. The carriers give you discounts on their locked-in phones, but you have to sign a 1 or 2 year contract with them. You could buy a phone off them for full price and not sign a contract, though those are still locked phones. Apple will sell you a full-priced unlocked (we are assuming) phone that you can go to any carrier you wish and say I want to use your service, and you won't have to sign long term contract. If you don't like the carrier move to another w/out paying to get out of a contract. I guess that's how it would work
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Jonathan said 3:37PM on 11-18-2006
Maybe not relevant to you guys, but in Belgium it's against the law to lock cell phones to one provider. This counts as coupled sales, and is forbidden. So all cell phones here are sold unlocked. I hope this one can be less focused on the US market. We are still waiting for video's in iTunes, maybe it's time for Apple to consider the European market more
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mark said 3:47PM on 11-18-2006
@Thayne - what are you talking about? If you get a phone independently (not from one of the carriers) what contract could you possibly be violating? You get your hardware, walk into a Verizon/Cingular/T-Mobile store and say give me service on this device. I'd say most carriers are happy to do so, since most of them make little to no profit (in some cases a loss) on the models they sell. I know at least have a dozen folks who have a Mot A1200 (NOT even sold by carriers in the US last I looked) and have successfully activated it on their carrier of choice.
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This is Me said 5:47PM on 11-18-2006
I'm stuck, per se, with Sprint for the next 12 or so months, so this'd be the only way I could get one out the gate. Here's hoping this is truer than rumor.
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Daniel said 5:49PM on 11-18-2006
An unlocked phone doesn't automatically mean you can just straight away use it on any network. It means that if you have a SIM card for a particular network, then you will be able to use the phone on that network.
I've never bought a locked phone, never will. If they *don't* do this I will be surprised and very annoyed.
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ultim8Fury said 6:04PM on 11-18-2006
Logically speaking, it would make sense to release an unlocked phone. Apple would retain complete control over the device and the customer experience.
However if history has taught me anything it's that when speculating about apple they generally turn around and do something completely unexpected which actually turns out better in the long run.
So I predict they'll not just release the phone but all of a sudden will announce their own phone service to go with it.
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