In tech circles, the unlocking of the Apple, Inc. (NASDAQ: AAPL) iPhone has been a constant challenge since the cellphone/iPod combo was released at the end of June. Apple's stronghold over the iPhone meant that, officially, the unit could not be used in the U.S. with any other wireless company outside of AT&T, Inc. (NYSE: T). That all changed recently when T-Mobile Germany said it would sell unlocked iPhones in Europe, which could then then be used with any GSM wireless carrier in the world.
Well, if you're a U.S.-based customer who has been seething with anticipation over buying an iPhone but frowning at the prospect of signing a lengthy two-year contract with AT&T, you'll be glad to know that Apple's own iTunes software can unlock your iPhone in a few seconds -- provided it was purchased at a T-Mobile Germany outlet. The cost: a touch under $1,500.
Is this good for Apple? The company sells the iPhone in the U.S. for $399, but gets a chunk back every month from the two-year subscriber agreement with AT&T. In overseas markets, where wireless phones are almost always sold unlocked and the competitive environment is much more consumer-friendly than in the U.S., Apple appears to be warming to what consumers want instead of what wireless carriers require. With a $1,500 iPhone cost (which is what T-Mobile Germany charges for an unlocked iPhone), it's getting a cut equivalent to 24 monthly paybacks from a wireless partner and probably more. Apple wins the revenue battle any way you slice it. Well, officially anyway.











Reader Comments (Page 1 of 1)
11-27-2007 @ 4:07PM
Doug S. said...
I would be stunned if, in its heart of hearts, Apple is happy about having to sell the iPhone locked and tied to one carrier. It must know that it could sell a lot more handsets if not for the folks who are locked into contracts with other carriers, and/or just don't like AT&T (and there seem to be plenty of them). Apple has spent a lot of marketing $ creating an insatiable desire among consumers for its products, and AT&T is a huge boulder tied around the waists of people who would otherwise jump at the iPhone.