Apple dislikes seeing its craved iPhone freed from AT&T's tight grip and has issued a warning towards all customers that future firmware updates crafted at Cupertino might render the unlocked iPhones useless.
When the first free iPhone-unlocking solution emerged, Apple's Greg Joswiak declared that the Cupertino giant is neutral about seeing third-party software running on its handheld, and that no engineer there will write code with the clear purpose of overriding somebody else’s software. However, if that does actually happen, Apple cannot be responsible for the outcome.
The company sharpened its tone recently, underlining that future firmware updates might enter in conflict with the modified software running on the "UniquePhone" and that this could lead to permanent damages and warranty loss. The next big update is slated for this week and among its important features is the iTunes Wi-Fi Music Store, which allows both iPhone and iPod Touch owners to wirelessly download tracks while enjoying a coffee in a Starbucks location.
"Apple strongly discourages users from installing unauthorized unlocking programs on their iPhones," the company wrote in a statement to the press. "Users who make unauthorized modifications to the software on their iPhone violate their iPhone software license agreement and void their warranty."
Apple added that the "permanent inability to use an iPhone due to installing unlocking software is not covered under the iPhone's warranty."
It's not a surprise the fact that Apple decided to set things straight. It was a surprise to me AT&T's lack of reaction when Apple made the jaw dropping announcement concerning the $200 price cut, but not this. I have never doubted about the fact that Apple would eventually reinstall AT&T on its "multi-year exclusivity" throne and in the end, this is what it's all about: Steve Jobs signed a contract with AT&T and has to follow its terms. Are you naive enough to think that in at least two years of development Apple and AT&T didn't think that someone might try unlocking the iPhone to use it with another network?
The locking-unlocking game is also linked to Apple's plans for a worldwide release of the iPhone: since Apple's business is apparently based on sharing the revenues carriers reap from selling the iPhone along with long time subscriptions (a revolutionary way of doing business in the mobile world, since currently most operators buy massive "stocks" for a single phone which they later sell with a discount), it's important for Apple's future partners (including the European ones announced last week, O2 in the UK and T-mobile in Germany) to know that they will enjoy the same exclusivity as AT&T. Gene Munster, a Piper Jaffray analyst, estimated that AT&T pays a $3 fee to Apple (over the life of the 24 month contract) for every iPhone customer already with AT&T and $11 per month for every new subscriber, but in return the largest carrier in the US gets a lot of tech-savvy customers willing to pay at least $60 each month. This type of deal is what Apple's partners want and the computer giant has no option but to comply with the demands, if it wants to keep using the same profit-sharing business model.
However, Apple's warning should not concern unlocked-iPhone owners too much (yes, I know that contradicts the title, but look of the bright side of things...).
First and foremost, for every new firmware update there's a workaround. As an example, I give you game patches, which in most cases include, besides the regular bug fixes, new security features aimed at rendering the so-called game-cracks useless. Those game cracks allow players to play a pirated version of a game without the original DVD or even join online game-sessions without the required DVD-key check on the server. Eventually, hackers do find ways to crack the game's security updates too, and this might also happen with Apple's updates.
There's another solution too. TUAW discovered that before you install the latest updates you can lock your iPhone again, and then unlock it after the new features have been added.
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