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Apple Cracks Down On iPhone Unlockers

An anonymous reader writes "It looks like Apple and its wireless operator partners have finally figured out a way of cracking down on iPhone unlockers by making it a requirement to sign up for a contract before you can get your hands one. "It's obvious why this has happened though. This method means you're tied into a contract, or you're paying O2 and Apple a massive wad of cash for the privilege of owning a 3G iPhone. We're disappointed about this decision, but it does make business sense." Both ATT in the US and O2 in the UK are implementing the new activation system on July 11th, when the iPhone 3G goes on sale."

22 of 565 comments (clear)

  1. Correction by Mateo_LeFou · · Score: 5, Insightful

    "a massive wad of cash for the privilege of owning a 3G iPhone" If you're not allowed to do what you want with the device, you do not own it.

    --
    My turnips listen for the soft cry of your love
    1. Re:Correction by OverlordQ · · Score: 4, Insightful

      If you're not allowed to do what you want with the device, you do not own it.

      You can do what you want with it after you buy it. You just need a contract to buy it, slightly different.

      --
      Your hair look like poop, Bob! - Wanker.
    2. Re:Correction by blackholepcs · · Score: 5, Insightful

      That's the problem with companies today. They "lease" you the equipment, with hidden terms and rules, and bullshit marketing that omits important facts that relate directly to your decision to purchase (lease) their product. Cell phone companies are one of the worst for this.

      --
      Halitosis - (n.) Halle Berry's Camel Toe.
    3. Re:Correction by sirambrose · · Score: 5, Insightful

      You can also cancel your contract and keep the phone by paying a $175 termination fee. Since the new models are $200 cheaper than the old models, the new phone is still cheaper than the old one that cost $400.

    4. Re:Correction by ConfusedVorlon · · Score: 5, Insightful

      That's the problem with consumers today. They'd rather "lease" a discounted phone and pay more in the longer term with higher locked in rates.

      Cell phone buyers are the worst for this, they more or less destroy the market for buying phones seperately.

    5. Re:Correction by SlickNic · · Score: 3, Insightful

      How on earth did this comment get modded up so high? Yes, by our standards those conditions are terrible. What you don't realize is that in 99.9% cases those are vastly improved conditions from anywhere else that individual could be working. Entry level Economics will tell you that if there was a better place to be working they would take the better job since people are rational. So if they didn't have those jobs they would have zero hope of ever moving up in life. By having manufacturing companies over in 3rd world countries we are helping those countries and the people within them to improve their way of life and economic standing.

      --
      Saying "all faiths are equivalent" is akin to saying "all drugs are the same".
    6. Re:Correction by Dr.+Spork · · Score: 4, Insightful
      Yeah, you can do that, but you'll have a $475 locked phone. What are you gonna do with that? Most likely, you'll get an illegal unlock, but then you'll want contract with some provider. Since it's an iPhone, you'll want a data plan as well as a voice plan... and market rates for that are about $80+ per month. So you bought out your contract... why?

      AT&T isn't exactly cheap, but their plans are not out of bounds of the market rates. Seems like the smart thing to do is to just stay with AT&T, enjoy your warranty and feel safe that a stealth update won't brick your phone.

    7. Re:Correction by Miseph · · Score: 3, Insightful

      A lot of people hate AT&T for a wide variety of reasons. The most common I've heard is that they really liked Cingular prior to the merger, but afterwards started to have billing problems and find dead spots.

      In any case, that French law sounds solid. Vendor lock in isn't cool when cell providers do it either.

      --
      Try not to take me more seriously than I take myself.
    8. Re:Correction by NtroP · · Score: 5, Insightful

      Slavery is a step up from living on the streets homeless and hungry (or being beaten to death), but that doesn't make it moral, nor something I should support if given the choice. I keep hearing your reasoning to justify using third-world slave labor, and I still find it unsavory.

      I grew up in a third-world country. It's not "Slavery". People are falling all over themselves to get and keep these jobs. If there is anything negative to be said it's that there is no job security. What we would consider "poor working conditions" and "low pay" is a gold mine to these people. Stop trying to help them out of their jobs. Talk to them and they will tell you that.

      Are there bad bosses? Sure. That happens everywhere. Are there some places that have poor working conditions? Sure. And we need to bring those to light and pressure them to improve. But for goodness sake, don't take these people's jobs away from them.

      --
      "terrorism" and "pedophilia" are the root passwords to the Constitution
    9. Re:Correction by orasio · · Score: 4, Insightful

      In fact, I think France forbids the selling a phone without an unlocked option. There's also some similar weirdness in Germany. Similar weirdness?

      So, forced bundling is the normal thing, and regulations against forced bundling are weird?

      With that kind of thinking, it seems like everything big corporations choose to do is to be redefined as the normal thing. Or does the corporation need to be C00l, and have a turtlenecked CEO?
    10. Re:Correction by cowscows · · Score: 3, Insightful

      In the USA, at least, bundling is the normal thing. Terms like "weirdness" and "normal" don't necessarily carry value judgements.

      It'd be weird and certainly not normal if I got home tonight and someone had filled my mailbox with hundred dollar bills, but I wouldn't consider that to be a a bad thing.

      All a corporation or anybody else needs to do to be "normal" is do what everyone else is doing. Whether or not it's a good thing or a bad thing is an entirely different subject.

      --

      One time I threw a brick at a duck.

    11. Re:Correction by 0100010001010011 · · Score: 4, Insightful

      And an unlocked iPhone will help Verizon customers how? iPhone is GSM. There are currently 2 main providers of GSM in the states: T-Mobile and AT&T.

  2. Re:I don't see how it makes good business sense by DrXym · · Score: 4, Insightful
    O2 are crap, most people in the UK realise this, it's one of the main reasons the iPhone has failed to take off in the UK.

    Nah, it has more to do with the fact that the iPhone is ludicrously expensive AND you must lock yourself into an expensive 18 month contract.

    Perhaps that strategy works in the US. It doesn't work in Europe where you can literally have any phone for free on the sorts of tariffs and contracts the iPhone ties you to.

  3. Re:What happens in places where it must be unlocke by TheP4st · · Score: 3, Insightful

    They will be sold unlocked, probably at a higher price than the $199 which is going to be price in most countries. And certainly many of those phones will find their way to countries where you can only buy iPhones that are tied up to a operator. Still, none of this will prevent Apple from cashing in a very thick wad of cash from the sheeple that buy one in countries where they are tied up to operator X.

    --
    "I have downloaded hundreds and hundreds of records, why would I care if somebody downloads ours?" Robin Pecknold
  4. Re:Seems reasonable by Serious+Callers+Only · · Score: 5, Insightful

    It happened with my old 8525 to get the $600 phone down to $285, and now it's happening with the iPhone to get the $400 phone down to $200. Only reasonable if you don't realise that $325 price drop was taken out of your fees for the next x years of contract.

    We'd be much better off if mobile phones were sold as items like computers or telephones, without contract, and the phone companies concentrated on providing a good service, instead of 'adding value' by gimping phone software, charging insane amounts for data, or tying users into long term contracts.

    $500 is a reasonable price for the technological marvel which is a modern cellphone, if you can't afford that, perhaps you can't afford a highly priced monthly contract either.

    As it is in the UK the iPhone may be available without a contract from O2 via the Pay as you Go packages, but they're being remarkably coy about that, they probably want to sucker people into signing 18 month contracts for 30-75GBP a month first before unveiling PAYG.

    I see why Apple has done this (as you say it's standard practice) but that doesn't make it any more palatable.

    PS Can't translate a £ symbol !! WTF Slashdot, this is 2008.
  5. Re:Seems reasonable by elrous0 · · Score: 3, Insightful

    Getting cell phone companies in the U.S. to abandon the "locked-in" model at this point would require a new law or high-level legal ruling. And, since the telecoms basically own Congress and the Presidency, it ain't gonna happen.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
  6. Thank goodness for Android by 0xdeadbeef · · Score: 5, Insightful

    While carriers might still be able to lock Android phones, there will undoubtedly be unlocked phones available, since there is no monopoly on the platform.

    Apple + AT&T = single point of failure

    Think about how absurd it would be if, in the old days, you had to buy your computer from the phone company because it had a modem?

  7. Just wait ...for ...it ...from the Chinese! by Zymergy · · Score: 4, Insightful

    Time will likely solve this issue as Chinese reverse-engineering development teams (and "ghost shifts" at probably the same factories making current 'official' 3G iPhones get to cranking out 'overages' lol)

    Then again, if the killer app is not the device but the method by which it is unlocked.... surely this will not increase handset theft or there is always the 100% 'honest' 3G iPhone vendor unlocking the phones in house for some under the table cash?

    Just what is so technically savvy about the new unlocking method or is this simply some lawyer-authored bulletproof contract that one must sign in fresh blood?
    I for one compliment the cloners in order to avoid those ridiculous lock-in contracts. This is the world of competition, and the nature of global competitors.

    How useful would it be for Asus' eeE PC to only work under contract and only from an Asus Wi-Fi router? It is a matter of time before someone creates a truly unlocked Wi-Fi handset that VoIPs whenever possible with Vonage et al, and other times uses the SIM for whatever carrier you choose to use that day. I can use my laptop with a variety of pay ISPs even at the same time. A few more evolutions of these devices and stiff competition will likely leave consumers getting a better product not crippled deliberately. This is why I despise the iTunes lock-in on iPods (and will not own one as a result). I remember when MP3 Players were as easy to access as USB memory sticks and they played nearly anything despite its source... Given Apple does make some sharp looking items, but they are not consumer-friendly due to their hardware lock-ins. I'd love to use Tiger or Spotted-Leopard or whatever it is called these days on my Intel PC hardware, I'd love to just use windows explorer to copy MP3 files onto my Nano. I'd love to swap SIM chips in my iPhone and use whatever carrier I am using at the time... But NO.. They are lawyer-empowered consumer-restraining capitalists above all else. So I pay for and own NONE of the Apple devices mentioned above.

  8. Links broken by SuperKendall · · Score: 4, Insightful

    Your links are broken, they point to something that is not quite as good as, much less superior than, an iPhone... even the current one. Especially so though after the July 11 software update and app store.

    but it's not subsidized by the voice and data plan, so you pay a penalty for buying one.

    It's very nice but it's simply no iPhone. It's not even as good as potential Android devices quite honesty, why you would buy an N95 now without considering an Android device coming before too long seems like a weird choice.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  9. gimmie a break. by milkmage · · Score: 3, Insightful

    why do some of you include the cost of the plan in the TCO for the iphone? the new pricing model is the same for all phones (go to ATT and check - the data plan is for PDA/Smartpone, there isn't a line item for the iphone) - so regardless of the hardware you buy your plan is the SAME (minus PAYG which has been dropped for the iphone) ATT PRESS RELEASE: http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25791 The new agreement between Apple and AT&T eliminates the revenue-sharing model under which AT&T shared a portion of monthly service revenue with Apple. Under the revised agreement, which is consistent with traditional equipment manufacturer-carrier arrangements, there is no revenue sharing and both iPhone 3G models will be offered at attractive prices to broaden the market potential and accelerate subscriber volumes. The phones will be offered with a two-year contract and attractive data plans that are similar to those offered for other smartphones and PDAs. AT&T anticipates that these offers will drive increased sales volumes and revenues among high-quality, data-centric customers. Currently, less than 20 percent of AT&T's postpaid subscribers have integrated devices capable of voice, Web and data applications. Based on the company's experience, average monthly revenues per iPhone subscriber are nearly double the average of the company's overall subscriber base. With a two-year contract, the price of an 8GB iPhone 3G will be $199; the 16GB model will be priced at $299. Unlimited iPhone 3G data plans for consumers will be available for $30 a month, in addition to voice plans starting at $39.99 a month. Unlimited 3G data plans for business users will be available for $45 a month, in addition to a voice plan.

  10. Going To Do Wonders... by Nom+du+Keyboard · · Score: 3, Insightful
    Isn't this illegal tying?

    If anything this is going to do wonders for Apple iPhone sales in a downward direction. Make it even harder for them to reach the magic 10 million sales in a year -- make that 18 months now.

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  11. Re:No turtlenecked CEO necessary by LKM · · Score: 5, Insightful

    Except when you can't. In the U.S, it's probably no big deal if you can't get unlocked phones. In Europe, where you can't spit without hitting two other countries, it is. The people here want phones to be unlocked by government mandate; some governments have followed the people's will. That's what typically is supposed to happen in a democracy.