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Old Jan 29, 2008, 07:23 AM   #1
Plumbstone
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1,000,000 iphones unlocked, 1 in 4.

(EDIT: I merged in this thread since it is on essentially the same topic.... --mkrishnan)

http://news.bbc.co.uk/1/hi/business/7214873.stm

Costing Apple $500m a year!!!!

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Old Jan 29, 2008, 08:46 AM   #2
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It's extra income, since otherwise they wouldn't have made most of those sales.

Many people are either not on the carriers they support, or don't like them.
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Old Jan 29, 2008, 09:17 AM   #3
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Is the iPhone Slowly Killing Apple or Giving it a New Life?




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Link: Is the iPhone Slowly Killing Apple or Giving it a New Life?
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Old Jan 29, 2008, 09:35 AM   #4
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I'm sure Apple doesn't care that much. Of course they'd rather get the extra dough from AT&T customers, but selling hardware is really what they are all about, and the more iPhones out there the better, especially when the SDK rolls out in less than a month.
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Old Jan 29, 2008, 09:45 AM   #5
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Originally Posted by Plumbstone View Post
Costing Apple $500m a year!!!!
Unless I missed a change, unlocking phones is still quite legal in the United States. None of us asked Apple to sign five years (or whatever) of exclusivity with AT&T. This is just a cost of doing business... if they don't like it, their option at this point would be to make going to AT&T more appealing.
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Old Jan 29, 2008, 10:43 AM   #6
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typical greedy corporate point of view. instead of making $3 billion, apple will now "only" make $1.9 billion.

look apple is not stupid and they know people are gonna unlock their phones. apple also knows they're not gonna have to service those iphones, because of voided warranties, which offsets that "loss" to some degree anyway. more importantly however, apple knows that in the near future consumers will have had enough and traditional cell carrier contracts will be a thing of the past... and once apple's contract is up with at&t, they will (a) have established a major foothold in the industry and (b) get every other carrier to concede to their demands. ei: make a ***** load of money, even though they're just establishing a foothold.
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Old Jan 29, 2008, 10:46 AM   #7
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I think Apple is going to wait until they sell enough phones so hackers who use them can't live without them. Especially after all the cool things that come from the SDK. Then they will zap them like DirecTV did with the satellite cards. X percent of the hacked phones will then rebuy and join a service. This is my hope anyway...haha. But I do believe they have the capability to disable them now if they wanted.
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Old Jan 29, 2008, 10:55 AM   #8
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What the hell are they harking on about? Do they really think that AT&T's revenues only come from the Apple iPhone? And last thing I knew, Apple had $18bn cash reserves in the bank, no debt, increasing Mac and iPod sales, and now they have not only broken into the mobile phone market, but have produced the best-selling handset of all time. Hardly the sort of position in which they need a second iPhone to 'save' them, despite fears of the inevitable recession.

In what way did the iPhone 'save' Apple (as is implied by the apparent need for a second generation version to 'save' it again)? Apple's Mac and music businesses are doing absolutely fine so the iPhone is just adding a new market - Apple doesn't need it! Equally, the suggestion that Apple and/or AT&T lose money, the more iPhones that are sold, is ridiculous too.
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Old Jan 29, 2008, 12:49 PM   #9
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While Apple might have "lost" $800,000,000 in AT&T revenue from having up to 2 million iPhones not activated with AT&T, they did make at least $800,000,000 in direct revenue selling them (assuming all 2 million were sold at $399 and they likely were not).

If it was just not possible to use an iPhone on any network other than AT&T, a good portion of those 2 million people would not have bought one, so Apple likely did better in total revenues selling iPhones that were unlocked vs. only selling iPhones that were AT&T-only.
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Old Jan 29, 2008, 01:48 PM   #10
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The only way this could hurt Apple. . .

is for the buyer to "unlock" the phone and then get their service from AT&T and cheat Apple out of their monthly payment from AT&T.

That is just a ludicrous scenario!

People who don't want to do business with AT&T (either from hatred of AT&T or preference for another carrier) are infinitely better for Apple if they buy the iPhone and unlock it than if they don't buy it at all.

Remember, we are on the precipice of a new age in the iPhone era. When the official SDK comes out, third-party apps are going "legit" on the iPhone and iPod touch. The more devices out there, the bigger the market for third-party apps, so the fact that a good number are unlocked will not be a negative for Apple. On the contrary, the phrase "mobile Wi-fi platform" will hit home with a lot of people who thought it was just another marketing buzzword. Look for cell phone carriers to become less and less relevant while ways to ensure continuous Wi-fi access becomes more and more important.
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Old Jan 30, 2008, 04:29 AM   #11
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Quote:
Originally Posted by rfrankl View Post
I think Apple is going to wait until they sell enough phones so hackers who use them can't live without them. Especially after all the cool things that come from the SDK. Then they will zap them like DirecTV did with the satellite cards. X percent of the hacked phones will then rebuy and join a service. This is my hope anyway...haha. But I do believe they have the capability to disable them now if they wanted.
Well, no crap, huh? Of course they could figure out how to brick your phone remotely, whenever you connect your phone to iTunes, they could make iTunes query their site and kill the phone. There are lots of ways to do it, actually, all of them FAR, FAR less ethical than unlocking your iPhone, which is a consumer right in most places. Why do you hope that Apple zap and alienate a huge portion of their customers just because they're not using AT&T? That's so far beyond stupid it surpasses my understanding. I'm sorry, dude. Cold, cold.
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Old Jan 30, 2008, 04:45 AM   #12
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Could this persuade apple to offer the iPhone on a selection of carriers once their exclusive agreements end?
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Old Jan 30, 2008, 04:58 AM   #13
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It's extra income, since otherwise they wouldn't have made most of those sales.

Many people are either not on the carriers they support, or don't like them.
True, I honestly would have it with AT&T but there is no AT&T in Costa Rica, therefore I had to unlock it What I hate is "companies" that see this whole unlock-able thing for profit, not the "I charge x amount of $$ for unlocking it" is the cellphone resellers that will charge ignorant people like 900$ for an unlocked iPhone and claim to be 100% secure and that it has a 1 year warranty, heck some even say the phone isn't removed from the original packaging, others tell them is authorized by Apple; it sickens me. To be honest I hope they don't warn about the updates to the customers and they end up bricking the phones and the reseller gets into some kind of legal trouble. The only "Apple-like"" store here in CR have 1 phone per store (hacked not unlocked) in a plexiglass box with a huge sign on top saying "Unit for illustrative purposes only not for sale" I know many of the "geniuses" in the store near my house and they say that even though it bothers them they won't take legal actions, because they don't know how to knock them down.

-Victor
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Old Jan 30, 2008, 05:08 AM   #14
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Could this persuade apple to offer the iPhone on a selection of carriers once their exclusive agreements end?
I certainly hope so. Could Apple (hypothetically) go country by country and offer they product in a variety of carriers, lets say the best 3 carriers or 2 carriers in each country? Maybe sweeten the deal with them? I wish I could have my iPhone "legally" and not be afraid of all the updates and stuff.

-Victor
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Old Jan 30, 2008, 09:13 AM   #15
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Don't fret about Apple. This was anticipated, prepared for, and is generally accepted by them. The only one taking a hit is AT&T. Thats 1 million potential customers that have hacked their way onto T-Mobile (oh so much better...... not).

But Apple still sold them the iPhone.
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