Site icon MacDailyNews

MarketWatch: Unlocked iPhones present dilemma for Apple

“With its long history in the computer business, Apple Inc. is no novice when it comes to hackers,” Rex Crum reports for MarketWatch.

“But even Apple seems to have been caught off-guard by the wave of consumers breaking into its latest gizmo, the iconic iPhone, in an effort to ‘unlock’ the device from having to operate within the network of its exclusive telecom-service partners, which include AT&T in the U.S.,” Crum reports. “The trend has been a mixed blessing for Apple. On the one hand, the company is still selling plenty of the devices, which rank as the most expensive wireless phone on the market.”

MacDailyNews Take: iPhone is not “the most expensive wireless phone on the market.” Not even close. Is Crum a liar, too lazy to take a few seconds to check prices, or just ignorant? You decide.

Crum continues, “On the other hand, iPhones that go unlocked are used on unsanctioned networks, denying Apple the ongoing revenue stream it has worked hard to secure through exclusive deals with its carrier partnerships.”

“Demand for the device is strong, and some consumers in other markets are apparently unwilling to wait,” Crum reports. “Estimates of the number of unlocked iPhones on the market range between 400,000 and more than 1 million. There have been reports of the iPhone being used everywhere from Australia to India to China — countries where the iPhone isn’t officially on sale.”

Such instances show the breadth of demand for one of the most-hyped technological products of the decade. That demand goes beyond the limits of Apple and its current network partners to completely control how the iPhone is distributed around the world,” Crum reports. “Chief Operating Officer Tim Cook touched on the matter during a Jan. 22 conference call to discuss Apple’s quarterly results. Cook said the number of unlocked iPhones ‘was significant in the quarter, but we’re unsure how to reliably estimate the number.'”

Full article here.

[Thanks to MacDailyNews Reader “Kari” for the heads up.]

For some reason, Crum neglects to mention the rest of Tim Cook’s relevant comments, so we will: Apple sees iPhone unlocking as a “good problem to have” and is a sign of iPhone’s popularity.

Exit mobile version