Apple Cracks Down On iPhone Unlockers 565
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."
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You can do what you want with it after you buy it. You just need a contract to buy it, slightly different.
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O2's network is not good enough (Score:4, Informative)
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Of course, you might just be able to buy it without contract at a huge "premium" like you can with any other phone and save yourself the trouble of doing that in the first place...
I doubt it. I believe that in Steve's presentation yesterday, he said that the maximum price anywhere in the world would be $199... meaning that they aren't going to allow any unlocked iPhones. Not to mention, everywhere (that I'm aware of) that Apple is selling iPhones, they're doing it with exclusive agreements with one carrier in each market.
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Here at Brazil the operators can't sell locked phones. It's the law... some laws here were made to actually protect the consumer.
Yes, that's right. IPhone will be sold unlocked here at Brazil.
Re:Correction (Score:4, Informative)
Yes, that's right. IPhone will be sold unlocked here at Brazil.
Unlocked French iPhones on sale for $1,106 [computerworld.com]
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For the contracts already negotiated such as AT&T for the US and O2 for UK, they had to remain exclusive, but I do get the feeling that Apple are learning as they go along here and if they'd had the opportunity they'd probably open it up to more carriers in their original markets.
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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?
Re:Correction (Score:4, Insightful)
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.
Re:No turtlenecked CEO necessary (Score:5, Insightful)
Re:No turtlenecked CEO necessary (Score:4, Interesting)
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First, despite of what you might have heard, a corporation is not a person. Sure, corporations are made of people, but a corporation should not have the same basic rights as a person.
Why not?
Because if a corporation is a person, nobody is accountable for that person's actions.
If you start a business as an individual, and you expect to have the freedom to do x thing (for example, to sell a product at a reduced price reflective of an ongoing service agreement; or possibly to sell a widget at a reduced price because it is slightly defective [while disclosing that minor deviation to the consumer]), or any of the other scenarios you might come up with under the fundamental freedom to contract for whatever you like, absent illegality, why should it be different when your one-man shop grows into a local chain?
Because it's a trade-off. If you create a corporation, you get some things, such as protection ensuring that the things you personally own won't be taken away from you if the corporation goes belly-up. In exchange, that corporation has a few less rights than you have.
If you don't want to make that trade-off, you're free not to.
As far as transactions are concerned, there's no reason to deny a company those rights simply because it has successfully grown beyond a single person. To do so would burden the expansion of business, something we would frown upon as a society.
I'm not sure why you think that everything that puts a burden on the expansion of a busi
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No. Athens is the very definition of a direct democracy. ...
If there is a triggering event to override popular decision or prevent its immediate enactment, it is not a direct democracy. It may be the closest functional modern analogue, but the reference is a misnomer.
Athens was not a democracy, at least by modern standards, because only some people from some families could vote. That is an oligarchy. You could argue that they represented the others, but that would be a representative democracy.
What your argue about Switzerland not being a direct democracy is that it doesn't match your own definition of "direct democracy". For most of us a direct democracy is one where the people are the actual rulers, instead of their representatives. That holds true there. People can
Re:Correction (Score:5, Informative)
In Belgium there is no concept of subsidied phone. You buy your phone and your contract separately.
Some other countries like France allow locking but still requires that an unlocked version is sold ( it is currently possible to buy an unlocked iphone in France )
Sure Apple could buy a law, but it more realistic to think that the 199$ 'maximum price' was a hyperbole. ( Also think that currently the USD is worth nothing - taking Steve speech literally would mean an iPhone for 100 GBP in the UK - yeat, you can barely enter a Apple Store with that money in your pocket. )
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There's the loophole for charging more for an unlocked version in countries that require it.
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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.
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In any case, that French law sounds solid. Vendor lock in isn't cool when cell providers do it either.
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Since it's an iPhone, you'll want a data plan as well as a voice plan...
Not all of us. I use my unlocked/hacktivated iPhone on ATT with my old SIM and no data plan. (EDGE data is disabled in the phone's config.)
I am on a family plan. I can't go legit with the iPhone without a contract extension, right? Well, that extends the contracts for all phones on the family plan. That wasn't acceptable, and I didn't really need the data plan anyway--it just wasn't worth the money to me.
(Why did I buy an iPhone? My old phone was dying, and getting a refurb iPhone cost $250, about the same as some other neat-o phone that I'd also have to unlock.)
Admittedly, I am an edge case, but still, there are reasons to use the iPhone just as a phone plus wifi device.
I just hope they don't start nuking hacked iPhones. It's a risk I am willing to take though.
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He was just being considerate, and saving you a character so you could splurge on "losing".
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Oh well, there are still other sub-national wireless providers, and I'm sure at least some follow Metro's contractless model.
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Just what ethical duty is that? (Score:5, Interesting)
I'm curious to hear your answer because, while the grandparent was right about the ethical duty of fulfilling a contract you agree to, I don't think Apple owes an ethical duty to us that would require them to offer an unlocked phone.
Re:Just what ethical duty is that? (Score:5, Funny)
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Ok, they do have one (and it never involves lubrication). You can fill in the blank.
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People are *not* rational (Score:3, Informative)
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.
You know, I actually agree with you that the jobs US companies create overseas are usually good for those economies and for those workers, even if they look bad for us. As shitty as they look they are often better jobs than the other options those people have.
BUT, your claim that the take-home lesson of Economics 101 is that people are rational is ludicrous. People are clearly not rational in their economic decision-making, and this is why so many of the principles of Economics 101 fail in the real worl
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Shitty work conditions and slavery are two extremely different things.
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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.
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I fail to see how that applies to a contract you are forced to sign in order to buy the product.
!!!!
Unless the product is an essential liberty, you sure as hell DO have an ethical obligation to hold to your side of any ethical contract!
In the case of the original iPhone, you did not have to sign a contract to buy the phone so unlocking it is not unethical. In the case of the second generation iPhone, you must sign a contract. If you don't like the terms of the contract, either find a way to buy it without or just pay the roughly $200 to escape the contract.
Obviously, if the contract is illegal, then
Re:Correction (Score:5, Insightful)
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Cell phone buyers are the worst for this, they more or less destroy the market for buying phones seperately.
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Laughing my ass off (Score:4, Informative)
It was not until deregulation (carter era?? I cant quite recall when it happened now) that you could buy any old phone and attach it. It may also surprise you to learn there was only one phone company too.
At the time it made a lot of sense. The networks made a lot of assumptions about what was connected to them. They trusted the hardware. they trusted signals coming in from other nexuses. trust trust trust.
but just like trusting client side authentication leads to grief, the rise of phone phreaks injecting their own signals into a trusted network led to free phone calls.
I can still see why the cell phone company has reasons that they don't just want to permit any possible activity on their network. They are all about quality of service for as many possible people not an all-you-can buffet where a few people can pig out.
But I digress. Leasing telephone equipment has been the norm since alexander graham bell. this little experiement where you "purchase" a phone then lease the line has been pretty short lived so far. So get over it.
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That's the problem with companies today.
Not just today, it's been done this way for over 100 years. [wikipedia.org] Ever notice that you can't buy old fashioned safety razors anymore? By giving away razors with more blades they encouraged men to switch to blades that are more expensive, and forced the inexpensive blade manufacturer's out of the market. It's the business model that made Gillette [wikipedia.org] the company [wikipedia.org] it is today.
On a side note, does anybody know where I can get a package of 10 hot dog buns?
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This means that carriers will subsidize phones and then look to lock them down to recoup their investment. They wouldn't have to do this if people had decided they liked buying phones the old fashioned way.
Just thank God that computers aren't sold this way or DRM would be even worse.
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ER, non-story (Score:2, Insightful)
Re:ER, non-story (Score:5, Informative)
Re:ER, non-story (Score:4, Funny)
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'Great Britain' and 'United Kingdom' are also not interchangeable.
Yup. Just to clarify things, Northern Ireland is not part of Great Britain, but is part of the United Kingdom.
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United Kingdom - passport issuing union of four countries (and their minor island possessions)
England
Scotland
Wales
Northern Ireland
Great Britain - an island comprising three countries
England
Scotland
Wales
Ireland - an island comprising two countries
Northern Ireland
Ireland (aka Republic of Ireland)
Note that someone bor
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Re:ER, non-story (Score:5, Funny)
a great Briton is an inhabitant of that country who is either (a)notable or (b)obese
And, ok, mod me off topic, I've got the karma to burn.
Re:ER, non-story (Score:5, Informative)
You deserve the mod points for the insightful statement that follows this, but I have to take exception to the above. Great Britain is an island, which contains the countries of England, Wales and Scotland, and forms part of the sovereign state of The United Kingdom of Great Britain and Northern Ireland, or UK for short.
It was only a matter of time (Score:2)
One has to wonder, is ATT really such a necessary evil or can innovations like visual voicemail be rapidly available other ways than lock-in?
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Of course by that point it won't matter, as all of the cell companies will have bought each other up, and then will proceed
Seems reasonable (Score:3, Interesting)
Re:Seems reasonable (Score:5, Insightful)
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.
Re:Seems reasonable (Score:4, Insightful)
Re:Seems reasonable (Score:5, Informative)
If I'm going to be locked into a contract either way, I'd much rather have my phone subsidized (new plan) than not (old plan).
I was all set to buy one of the new iPhones until more data started leaking out. You know that nice iPhone plan they had? 450 minutes, unlimited data, 200 SMS for $60 a month?
Gone
In what can only be described as "easier", you now have to use the standard AT&T model. Their lowest plan is 450 minutes which is $45. You have to add $5 to get 200 SMS messages (note: this seems to include MMS and other things too, which is different). Then there is the iPhone data plan that you are required to buy: $30 a month.
So instead of a simple little $60 plan, they now expect me to pay... $80.
So let's see... $20 difference per month X 24 months = $480. Take out the cut they were paying to Apple (wasn't it like $5?) and that's another $120.
So AT&T's revenue goes up $600 per two year 3G contract.
I'm not so sure I want to pay $80 a month for an iPhone. I was hesitant with $60 but this makes me question things much more.
Congratulations again AT&T. You took the must buy product of the year for me and managed to screw it up.
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I understand. From the point of view of other smartphone users it make sense. From my point of view (potential iPhone customer), they just gave me a $20 a month price hike.
If they dropped the price of the existing plans I could understand. I'm not going to complain about $65 a month instead of $60. Maybe even $70.
But they took the incredibly simple iPhone plans (pick you number of minutes, you're all set, you get SMS and everything) and switched them back to the pick your option mess while raising the pri
You need a contract (Score:5, Interesting)
So while you're at it, as you'll be buying a phone and a contract anyway why not the phone company giving you some rebate as they're going to make wads of cash from the monthly fee any way ?
The only current problem with the iPhone is that they have exclusive contract with some service providers.
Whereas, in several European countries (including here in Switzerland, but also mandated by law in France as reported recently on
The two aren't even bound together (the phone was just taken from the shelf) and nothing forces you to use this contract and this phone together (you could cheaply get and extra handset by extending your own current contract and give the phone as a present to you S.O.)
Some service providers have their own shop which may sell some special package with a "special edition phone" (= read : the provider logo on the phone's shell, 1 additional customized screen background and ringtone, and some preinstalled crap that you won't use at all).
But in most shops and malls, you just pick up the phone you want, and eventually the contract you want from the provider of your choice.
The idea of subsidizing phone with provider contract isn't stupid. It's the complete lack of choice for those contract that is debilitating.
Free Phone service (Score:3, Insightful)
That would be nice if the money they're giving you wasn't taken from you in the first place.
You, if you just don't want to pay any money to service providers in the first place, maybe you should simply forget the whole iPhone idea.
Get an opensource solution like OpenMoko which will happily let you run whatever you want, even VoIP over free WiFi (Or if you don't like hacking, get one of the Skype VoIP WiFi phones). Thus you'll have your phone without giving any money to those evil corporations.
Big News : Phone service cost you monney. Either get along with it or move to something else (free WiFi).
Going to be hard in most european countries. (Score:5, Informative)
I know for a fact that France and the Netherlands have laws for that, and if I remember correctly, Germany has as well.
So either they're not going to be able to sell iPhones there, or they have to be sold seperately, which then opens them up for unlocking anyway.
Re:Going to be hard in most european countries. (Score:5, Informative)
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And the minimum total spend on the contract has to be clearly listed in the commercials.
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But they were still able to sell the iPhone in France, so I don't think those laws are that strict.
In Belgium, however, there are better laws on this, and the iPhone still isn't officially being sold here. There are shops that sell imported unlocked ones, though, for a hefty price.
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Links broken (Score:5, Insightful)
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.
What happens in places where it must be unlocked? (Score:2, Redundant)
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So much for that (Score:2, Insightful)
The more they tighten their grip, the more customers will slip through their fingers...
I couldn't disagree more (Score:3, Informative)
I think that John Gruber nailed it [daringfireball.net]. By halving the price and rolling out in 70 countries simultaneously, Apple is going for market share in a huge way. If you thought the hype leading up to the US launch last June was over the top, I think you'd better go hide in a cave in the weeks leading up to July 11th. The global excitement and anticipation will feed on itself and drown out any other consideration, as far as the ge
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Smartphones? And at what profit? The big thing is mobile connectivity. Can the 95 kazillion candybars Nokia sells connect to the Internet as well as the iPhone? Symbian has about 51% of the smartphone market right now, not "upwards of SIXTY", and it's SHRINKING, losing share to Windows CE, Linux, RIM, and now Apple. Listen to yourself, hyperventilating on your iPhone hate. What, you think technology is going to sit
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Yes, via built in XHTML/WAP browser or better, J2ME Opera Mini 4, there are lots and lots of RSS readers etc. sometimes built right into device itself. There is no "lock" or anything and even simplest Sony Ericsson devices can multitask Java applications. I didn't hear any phone "melting" because user dared to multitask either.
Symbian, WinCE and RIM will keep leading the real market unless Apple dares to open the
This makes sure the new iPhone is NOT CHEAPER. (Score:5, Interesting)
If you do the iPhone math [tech-recipes.com], the new phone will cost you more than the older phone despite the "half the price" ad campaign.
If AT&T really drops free sms, it'll cost even more.
I don't mind paying more. However, for somebody like me not in a G3 area, why should I have to pay the G3 transfer higher prices?
As far as I recall... (Score:5, Informative)
Thank goodness for Android (Score:5, Insightful)
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?
Just wait ...for ...it ...from the Chinese! (Score:5, Insightful)
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.
A moment of sanity... (Score:3, Insightful)
How else would you sort out the purchase of the iPhone?
As they have different initial outlay, they aren't going to let you pick up an iPhone for £59 then choose a cheaper tariff. The only way to offer the different initial costs is to make sure that the tariff you have matches.
It really isn't some conspiracy. It isn't to crack down on phone unlockers. There is nothing to stop you unlocking after purchase.
They are just covering the subsidy through the tariff.
gimmie a break. (Score:3, Insightful)
Not going to be sold online.. (Score:3, Interesting)
From the Apple Store Online:
Where to buy:
iPhone will be available in 8GB (black) and 16GB (black or white) models1 at Apple Retail Stores and AT&T Stores.
The absence of "right here on this page" is sad. If you want one, you're going to have to sit with the mob on July 11th. Boo.
Going To Do Wonders... (Score:4, Insightful)
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.
Three words: "Nokia N800 series" (Score:5, Interesting)
The iPhone alternative (for freedom lovers) [cnet.com]
"This article [cnet.com] explains how to get an even better mobile Internet experience, without having to do business with either AT&T or Apple--with no contracts and no $60 per month bill just to surf the Net."
(Surveillance State blog [cnet.com])
Re:I don't see how it makes good business sense (Score:5, Insightful)
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.
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http://gizmodo.com/5014909/att-memo-to-retail-managers-shows-iphone-3g-policy [gizmodo.com]
Sounds to me like if you "can't find" your phone, they'll just keep billing you for the service.
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But yes, 8GB is free with the £45 tariff, and the 16GB is free with the £75 tariff. Still, assuming an 18 month contract, that ain't cheap. £1350
Re:Why bother unlocking? No really, what's the poi (Score:3, Insightful)