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Apple Sued Over iPhone Bricking
An anonymous reader writes "The week's debate over the iPhone 1.1.1 has finally resulted in legal action. InfoWeek reports that on Friday, California resident Timothy Smith sued Apple in a class-action case in Santa Clara County Superior court. The suit was filed by Damian Fernandez, the lawyer who's been soliciting plaintiffs all week for a case against Apple. The suit doesn't ask for a specific dollar amount, but seeks an injunction against Apple, which prevents it from selling the iPhone with any software lock. It also asks that Apple be enjoined from denying warranty service to users of unlocked iPhone, and from requiring iPhone users to get their phone service through AT&T."
For our international friends OfCOM is the government watch body for communications, a few years back they made the statement that unlocking your phone so it will work on different networks is perfectly legal and carriers have to unlock a phone if asked to do so (not tried it myself.) Apple's recent american update would fly in the face of that and OfCOM aren't afraid to fine companies and force them to follow their rules. OfCOM is currently looking into forcing broadband adverts to be more truthfull so marketing speak like "upto 8MBPS" or "unlimited" won't be allowed (even if they are legal) for Americans out there this is to protect consumers and is a good thing.
I doubt its going to sell many units to the teenage "cool and hip" crowd because every teenager I know in the UK doesn't want to bring an expensive phone out on the town and I doubt your "power manager" type will end up with one because, from my albiet limited expearence with O2 stores. The staff are actually quite good at matching the phone to the individual, it may not necessarily be the most expensive phone they have on offer nor might it be the coolest looking but it will be roughly what the customer is after.
You believe that Apple's actions are OK, and maybe they are in the US. But that won't fly in Europe.
The GSM standard expressly provides for cross-vendor compatibility through simple SIM change, and unlocking of locked phones is entirely legal in most if not all European countries. In fact, it's a substantial business to provide unlocking services, and to sell ready-unlocked phones.
That doesn't mean that it's free (a cellphone service provider will charge you for unlocking, since it carries the risk for them that you might defect to a competitor if their service is bad). But it does mean that unlocking is supported.
If the accepted and legal position in the US is that providers are allowed to deny GSM service mobility by not offering unlocking and by bricking unlocked phones on purpose (allegedly), then those providers are about to face problems when they try to do the same thing in European jurisdictions.
"The question of whether machines can think is no more interesting than [] whether submarines can swim" - Dijkstra
Warnings were given multiple times. Apple release a press release, posted a warning before your computer downloads the new software and then posted an aditional and seperate warning (completely seperate from the EULA) before you could CHOOSE to install the software.
According to several reports, a big chunk of Apple's profit is coming from the locked-in service providers:
http://www.thestreet.com/s/huge-iphone-fees-juice-apple/newsanalysis/techtelecom/10369581.html
http://www.guardian.co.uk/technology/2007/sep/17/mobilephones.apple
To make the same profit without a lock, Apple would have to raise the retail price significantly. Looks like a subsidy to me.
Yes, when purchasing an iPhone you are under no obligation to sign a contract.
What Apple want is for the customer to own the phone and not the service provider. Steve Jobs said many times he wishes to change the business models of mobile phone service providers where they provide the service, and the customer owns the device (iPhone). Now this is where it gets into a dodgy area in the UK. Contract phones are locked in the UK because the device is owned by the service provider until x amount of payments are made - payments that cover the subsidy costs. Because the service provider owns the device, they can do whatever they want to your phone; they can lock it to their network, block the phone, or even take it off you. The contract will state this, and if you want the device to be unlocked the contract will have to be terminated, you will have to pay all the payments for the term of the contract (to cover the subsidy). When the contract ends, the service provider will usually give the ownership of the phone to the customer, so if the customer wishes they could unlock their phone, a small and reasonable administrative charge may be made (£15 is what O2 charges). Now, the iPhone is not owned by service provider, with what OfCOM have stated (telephones must be unlocked on request and small admin fee may be charged), the iPhone should be allowed to be unlocked from day one of ownership. O2 are stating you will not be allowed to unlock the phone for 9 months and doing so will terminate the contract so the rest of the last 9 months contract will have to paid off, however the phone is not owned by O2 in any way, so what they are doing is going against what OfCOM have said. 'Yeah what contract, there was no contract when I bought the phone' will be in my head when it is launched. I have asked at three O2 stores and they have confirmed the iPhone will not be owned by O2 however their HQ is pushing for the iPhone to not be unlocked. One stored offered to unlock it, but do not know of any means to at the moment. I will stay with O2 but do not want that awful contract they offer for the iPhone, I get a better offer on PAYG. Notice the contract is "for the iPhone" and not "with the iPhone". The O2 stores believe a PAYG method will be available just like AT&T if you have a poor credit rating. I asked I could have the PAYG and they said yes if it is offered as they cannot say no because it would break discrimination laws. If PAYG is offered, they for sure cannot keep you locked in. You do pay full whack for the iPhone, they have a nice table that was printed that states how much each handset will cost on certain contracts, the iPhone was listed and it said, "£269. (none subsidised)".