Wednesday 26 September 2007

Unlocked iPhone legal? Is this the right question?

There have been a lot of posts about Apple releasing a new update that will brick (permanently) any iPhone that has been unlocked. This has come to light as it is based on an official Apple announcement and just some joker on the Internet trying to stir trouble.

I just read a great article from ZDNet which asks the real question. It makes me a bit uneasy how easy Apple can turn this situation around and make it "look" like unlocking your iPhone is illegal... it's not. In fact this ZDNet article quotes the law to prove that unlocking a phone in the US (and I think almost everywhere in the world) is completely legal. Therefor the real question (as that same article asks) isn't if an unlocked iPhone is legal (as it is) but instead if Apple can "brick" your phone because you've unlocked it. This has two very serious implications to it which lead me to believe that Apple is just bluffing and are not THAT arrogant, and in fact stupid, to pull a stunt which is guaranteed to hurt them (both image wise as well as financially).

First of all, since unlocking a phone (which incredibly includes the 8th wonder of the world aka iPhone) is completely legal, a company (even Apple) cannot deem it otherwise. I mean is Apple above the law? Can they make their own laws? That is what it looks like doesn't it? Therefore the logic is if you have done nothing illegal, you cannot be punished, especially in such a permanent way. BTW, bricking the phone would mean that it is now dead, permanently and cannot be repaired, and has to be replaced.

Secondly, let's examine a very realistic outcome of Apple bricking their iPhone. IF they release this update, and a few thousand phones can only be used as in-store non-working mockups how long will it take for a class-action to be filed... I say as long as it takes someone to put down their broken iPhone and find another phone to call an attorney. So now we get into a VERY ugly situation for Apple. It will be VERY public, and worst of all... they are in the wrong and would lose any court battle. The risk is they would be forced to replace all "bricked" iPhones, as well as possible damages... AND the most important thing that would come out of this... they would have to officially start to support "hacked" phones as EVERYONE would just say their broken phone is a direct result of Apple's "update" even if it just fell on the pavement and shattered into a hundred pieces. Apple would most likely just have to replace ANY iPhone for ANY reason or risk additional public scrutiny. This would be a very very bad situation for Apple, and one they have put themselves into... without any help from anyone else.

To Conclude I would also like to add, that while I understand that Apple has signed crazy revenue sharing deals with the Mobile Providers (sucker providers who will pay for their stupidity) I believe Apple's main market will NEVER be mobile phones. Now I know it's very dangerous to use that word... NEVER, but for Apple's sake, lets hope I am right. The mobile market is VERY competitive and if Apple is actually considering to join that party they need to realize, they will not make money there... at least not nearly as much as with iTunes. So the best thing Apple can do, I think, is to realize they need their new iPhone device to sell, and get people to use the iPod functionality of it (buying more music and videos off iTunes of course) and allow the hackers to show the device's true potential not the limited, controlled environment Apple would like to have. As the saying goes... be careful what you wish for, you might get it.

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