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Is Apple down with an iPhone unlock?

CNET's Don Reisinger has a great article up about what may have been Steve's Master Plan: letting an iPhone unlock happen.

Pretty ingenious if it's true. Basically, Reisinger maintains two things: that Apple is a hardware company, and that AT&T was just a means to an end for them. If hackers are able to unlock the iPhone, Apple will lose a little bit (because they do get a small cut of service plans), but they'll still sell iPhones, and AT&T will lose everything. Jobs "did his part"-- he closed off the iPhone and declared an exclusivity deal. But now that we're on the verge of completely unlocked iPhones, Apple has no real incentive to cut it out.

And that's exactly how it's played out-- Apple's recent iPhone update did pretty much nothing to close off the system, and as Reisinger says, it wasn't Apple knocking on the doors of those who are about to unlock the iPhone-- it was AT&T. The iPhone's unlocking will bring a rush of sales for Apple-- and a rush of sobbing from AT&T headquarters.

It's hard to believe Jobs planned it all out, and we'll likely never know for sure anyway. But considering that we might be days away from an iPhone unlock, you have to wonder if Apple not only knew it would happen, but kind of wanted it to.

[ via MacBytes ]

Update: Our own Erica Sadun pinged me right before this post went to press to remind me that we're really, really close to the 90-day unlock period for most iPhone owners. In the past, AT&T has provided an unlock code for any phone upon request, as long as the customer has stuck with them for 90 days. I'm not sure if that policy is applicable with the iPhone, but that may be another factor in just how much AT&T has to lose with an iPhone unlock.

CNET's Don Reisinger has a great article up about what may have been Steve's Master Plan: letting an iPhone unlock happen.Pretty ingenious...
 

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tumacana007

Well...if you can unlock the phone for use in other countries, that would be nice no? For example i'd like to send an unlocked Iphone to my Girlfriend in Dominican Republic. That Country runs on GSM from Orange. I sent her a Motorola Krzr (unlocked) and it works beatifully!

September 04 2007 at 1:40 PM Report abuse rate up rate down Reply
Alias420

Here is the easiest guide to unlocking the iPhone yourself: http://www.iphone-hacks.com/2007/09/01/iphone-unlocking-guide/

September 03 2007 at 3:57 PM Report abuse rate up rate down Reply
Leli

Buy the unlocked iPhone online, free international delivery. The Apple’s iPhone is a piece of revolutionary mobile phone and years ahead of other PDAs and Smartphones. For iPhone pictures and iPhone videos and buy iPhone online, please visit http://www.iPhone-Singapore.com/?r=leli

September 02 2007 at 2:47 PM Report abuse rate up rate down Reply
AT&TGuy

The AT&T unlock policy it not 90 days, in fact a new customer may be eligible to unlock his/her device the day they activate service.

I work in the department that handles subsidy request for my region and I can assure you, I have provided many codes for customers well under 90 days.

Only prepaid customers have a specific number of days active which is 90 for them.

September 01 2007 at 4:32 AM Report abuse rate up rate down Reply
Jason

Interesting sideline to this discussion: What would happen if someone "accidentally" reverse-engineered or leaked the API for the visual voicemail features? Then other carriers, T-Mobile, Orange, whoever, could implement this if they wanted. Would AT&T sue them? Could they? Interesting question.

August 31 2007 at 2:30 PM Report abuse rate up rate down Reply
Paul

I don't see how AT&T loses anything. For one, unlike other phones, AT&T is not subsidizing this phone at all. Everyone has to pay full retail to get the phone. Nor are they underwriting any costs associated with producing the phone. Furthermore, I think this will be a moot point once the next iteration of the iphone comes out with 3g. Since AT&T will be the only gsm network with 3g capabilities, people who want fast internet on their phones would still have to use At&t. Unless tmobile gets their act together and rolls out a 3g network, which doesn't seem to be in the offing anytime soon, At&t shouldn't be too worried.

It is also very telling that Apple has made no noise at all about the unlock software considering they seem to have a penchant for suing the pants off anyone who leaks anything about their products. Remember how several apple blog sites were sued because they leaked product info?

August 31 2007 at 1:54 PM Report abuse rate up rate down Reply
jps

In a word: no duh.

How hard has apple pursued anyone cracking either the ipod or the apple TV? Not very. Compare Apple to Sony and their keeping up with the PSP homebrew community.

Apple has 2 sides to make happy: people who buy their hardware and media producers who create content. The latter they keep happy only as a means to an end, that end being more hardware sales. I made an argument a while back that since the itunes music store doesn't create any real profit for Apple once it pays expenses, the only logical arguments for it's existence are to a) give consumers easy access to music, but more importantly b) legitimize mp3 players to the music industry.

Apple played it's cards close to the vest when it came to the ipod. It's doing the exact same thing when it comes to the "openness" of the iphone.

I anticipate that Apple's contract with AT&T only lasts so long. In 2 years (aka the length of most contracts), I predict there will be some sort of reckoning based on how well the iphone is doing for AT&T, how unlocks have effected either's bottom line, and finally how much AT&T is willing to pay to continue Apple's exclusivity. If their relationship should sour, Apple can go elsewhere and not particularly care. Similarly, if another label drops off the itunes music store, I'm not sure Apple would particularly care.

August 31 2007 at 12:48 PM Report abuse rate up rate down Reply
lanny

If the unlock breaks warraty I don't think unlocking would become a mainstream. I trust Apple products very much but 5+600 bucks are too much to risk.

August 31 2007 at 11:00 AM Report abuse rate up rate down Reply
DrunkDwarf

If the iPhone supported an unlock code someone would have disassembled the ARM code for it and exploited it by now.

I think the iPhone should support a "foreign SIM" feature where when the iPhone is overseas it allows one to use a local SIM. But when you get back home to the USA you're back to at&t or nothing. I paid too much for my iPhone to be gang raped by at&t when overseas.

August 31 2007 at 10:45 AM Report abuse rate up rate down Reply
faciom

You'd offer another perspective as I believe you are not putting this n the right perspective.

It looks like AT&T is made of idiots, which isn't true: of course they know that in the age computers and internet a lock would only last a limited time. Locks are unuseful, and in fact at&t and apple are not going down the path of releasing a patch every time the unlock is published.
Instead, they know that the best way to make sure people do not change provider are: exclusive services that require backend changes (see visual voice mail, and I'm sure many more to come), competitive rates and good coverage. Their collaboration has just begun, and if these two companies are wise they will invest on these three areas (and it seems they have started) because the best way to maintain an audience is to give that audience MOTIVATIONS to stay. You can then unlock your phone and change service, but why would you do that if that would also limit the capabilities of your device?
I'm expecting more services on the back end (and room for improvement are limitless) to secure even a vaster audience.

August 31 2007 at 10:38 AM Report abuse rate up rate down Reply
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