“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.
Unlocked iPhones are indeed a “good problem to have” for Apple. Officially, Apple must act concerned and take steps to remediate the issue because of the exclusivity deals. However, Apple still makes a healthy profit on every iPhone sold, whether it’s used on the exclusive carriers or not. Of course, it would make more through ongoing revenue if it was used on the “approved” networks. But the unlocked iPhones are not reducing the number of iPhone activations with the exclusive carriers. They are being used by people who refuse to switch carriers or are in an area that does not officially have the iPhone yet. In fact, these unlocked iPhone numbers demonstrate iPhone’s popularity and should give Apple additional clout in negotiating future exclusivity agreements worldwide. So how is this a “bad” problem? It’s not.
Oh, lighten up for cryin’ out loud.
MDN makes as many mistakes as anyone and no one can equal this publication’s lack of objectivity.
The most interesting element of iPhone is the visual e-mail. It required the networks to invest in equipment to achieve and Apple therefore had to give something to a network to take it on. The popularity of the device is now assured.
How long before the competition provides the network hardware capability to capture and retain the unlocked phones.
cheap mobile data plans on all networks will be a real benefit to all mobile users – particularly in the UK
Anyone ever consider how all those “extra” off network iPhone sales affect actually help Apple by:
A.) the increased number of units sold reduces the variable cost of production per unit, increasing the profit per unit on the “sanctioned” units sold.
B.) contribute to R&D;… a portion of those gross profit dollars plowed back in to R&D;to create even better products.
C.) and further the “halo” effect? How many of those hacked iPhones were bought by non Mac users… who discover the elegance of design and intuitive interface of Apple, then go buy a Mac.
Maybe thats why they said “it’s a good problem to have” because they understand these never considered factors the “talking head” analysts do not.