CNN: "The Steve Jobs Master Plan: iPhone hacking"

The Apple

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http://news.com.com/8301-10784_3-9767325-7.html



Unlocking a cell phone is neither illegal nor in any direct voilation of laws. Apple can't stop anyone from unlocking a cell phone and to be honest, I don't think it really cares. Apple is playing this recent iPhone unlocking news perfectly. If it overreacted and stopped the hack, it could stymie its future revenue gains, but if it endorses such a maneuver, it effectively leaves AT&T out to dry. Isn't it ironic that AT&T lawyers went knocking on the doors of the hackers while Apple lawyers sipped tea at home?"


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Mike

Apple's iPhone software licence does stop people from legally unlocking an iPhone. When you purchase and activate an iPhone you agree to the terms of use. That includes section 2(c) which covers altering the software in any way. The kid who cracked the iPhones carrier block is subject to prosecution and damages. I'm sure the law team at Apple will protect their investments with AT&T. I'm sure that there is a lengthy contract between AT&T and Apple that includes articles to protect both parties. AT&T's law team had to have included content covering software flaws on the iPhone, allowing carriers not included in their contract. I think that this kid will be pursued. I think people doing hacks or mods for leisure will be overlooked. I would also think that if the unlocked phone gets any software updates past 1.0.2 it will not work on another network. At least that is what AT&T would like to see happen, and probably Apple as well. I am sure they consider this project a team effort.
 

The Apple

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But the article makes it sound like, NOT stopping hackers is all part of some secret plan to sell more iPhones.

Gimme a break. :eek:
I believe that Apple is not as concerned with hacks concerning modification of ringtones, backgrounds, buttons, applications, etc.

Apple is probably very concerned about hacking that comprimises contractual agreements between Apple and AT&T.
 

ps49556n

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Dumbest article ever. Makes up a fake point about Apple needing to stop hackers, and then argues against it.

Not only would no company rely on hackers for sales, but the number of hacked iPhones is always going to be a tiny percentage of units and users.

Still, Apple can't be happy about losing royalties.

Well said I couldn't agree more...


I think the one thing that really tarnishes this theory is that Apple apparently is planning to release a european version with exclusive carriers...why would Apple do this if it was relying on hackers for sales....


The more I think about this moron's theory, the more flawed it seems....apple was relying on hackers to boost revenue? Please...
 

kdarling

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I think the one thing that really tarnishes this theory is that Apple apparently is planning to release a european version with exclusive carriers...why would Apple do this if it was relying on hackers for sales....
Exactly!

If Apple thought that mass sales were the way to go, then why have any exclusive contracts at all? Just sell through all carriers.

Not to mention, what foreign carrier would agree to pay Apple 10% of the take, if they knew rival carriers didn't have to because of a large number of unlocked phones?

Clearly, Apple is counting on legal sales to keep the cash rolling in. If unlocked phones ever become a serious threat to that income, you can bet they'll find a way to lock them down again.
 

RyanFavre

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If steve jobs and Apple planned on the iPhone being hacked to help iPhone sales, you think they would have spent so much time making it difficult hack?

I mean i took hackers nearly 2 months working around the clock to finally open this thing up to new carriers. Many sites such as engadget have expressed surprised that it took so long.

Another one of these steve jobs is all knowing and the bestest ceo everer articles. Jobs didn't want his new baby hacked and I'd wager a good amount of money that the software hack(s) to make it available to other carriers will be countered and that even the hardware hack will be eventually countered as well.

A silly article really.
 

Tinman

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He means if they didn't care about collecting royalties and service fees they would've just gone with verizon who wouldn't give them royalties/service %'s.
Yes, but any talk about what may or may not have occurred between Apple and Verizon is speculation. Verizon has dribbled out a few nuggets, but nothing detailed. Apple has said nothing.

As far as revenue sharing, it's not hurting the carrier much at all. Most phones sold today via distributors grant the seller a commission on service. It's nothing new. The only thing new is that Apple, a manufacturer, has decided to go after that commission instead. This is why you can only buy an iPhone at AT&T corporate stores and Apple itself--there are no independent dealers making a cut off the service.

As far as control, from what I understand that was mostly about iTunes activation, visual VM, and probably most important: lack of carrier branding and customization (no carrier logo on the device, no carrier Web "portal," no carrier installed/uninstalled apps, no ads, etc.). This is control over the carrier.


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Tinman

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Apple's iPhone software licence does stop people from legally unlocking an iPhone. When you purchase and activate an iPhone you agree to the terms of use. That includes section 2(c) which covers altering the software in any way. The kid who cracked the iPhones carrier block is subject to prosecution and damages.
"Prosecution?" You have got to be kidding (either that or far too emotionally attached to Apple).

I'm sure the law team at Apple will protect their investments with AT&T. I'm sure that there is a lengthy contract between AT&T and Apple that includes articles to protect both parties. AT&T's law team had to have included content covering software flaws on the iPhone, allowing carriers not included in their contract. I think that this kid will be pursued. I think people doing hacks or mods for leisure will be overlooked. I would also think that if the unlocked phone gets any software updates past 1.0.2 it will not work on another network. At least that is what AT&T would like to see happen, and probably Apple as well. I am sure they consider this project a team effort.
I very am sure you are not sure at all. :p

Seriously, time will tell. My money's on Apple not doing much at all to stop hacking. They've already locked the iPhone as well as, or better than, any other cellphone released to date. IMO that's where their obligation ends, unless it can be proven that the locking was sub-par (doesn't seem likely considering the amount of time it took to complete--and as of this writing the so-called software unlock remains unknown).


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Tinman

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Not to mention, what foreign carrier would agree to pay Apple 10% of the take, if they knew rival carriers didn't have to because of a large number of unlocked phones?
Because they know the majority of people will still go with the authorized carrier. Let's face it, the recently signed European carriers knew the iPhone was either hacked, or would be hacked, by the time it was released to them.


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Michael Baturin

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They've already locked the iPhone as well as, or better than, any other cellphone released to date. IMO that's where their obligation ends, unless it can be proven that the locking was sub-par (doesn't seem likely considering the amount of time it took to complete--and as of this writing the so-called software unlock remains unknown).
I agree completely. It is not like someone found a secret combination of buttons to press in a certain order and it unlocks the phone, (as if to say it was an intentional or easy crack). This guy soldered wires together to stream code through new circuits that he needed, (or something like that). He did something most people can't do.

But it is looking towards the future. Should an easy way to unlock (send in/receive back unlock service) occur, thats when action would most likely happen.
 

sp1d3y

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what about an update?

What about when Apple puts out another update? it's said that any mods that were placed on the phone would revert back to the original settings and original structure. That would basically revert the phone to stock so in that case you would have to rehack the phone all over again. Is it possible? What if so and an update was place every so often and when you connect the phone to iTunes its a non-stop access point. Anyone figure that in.... Maybe he has a bigger alternate plan. Since it has happened already and is posted out there.
 

brinky

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Nor do I think Jobs is happy that people are hacking ways to add applications. He wants control, he wants sales. If he didn't care about that, he'd have gone with Verizon.
I seriously doubt that Verizon was ever really an option. If Apple did go with Verizon then they would have 2 produce 2 different iPhones. One for the USA market (CDMA) and one for the rest of the world (GSM) this just doesn't make much businesss sense. I think the leaked stories of verizon were just a way to get leverage with Cingular (Now AT&T).

Also depending on whose figures you look at Cingular is the largest US carrier, so why would you go with #2 when you have a much larger audience to sell your product to? Just my $0.01 (After buying the iPhone, I can't afford to be giving $0.02 away all the time!)
 

ps49556n

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This is why you can only buy an iPhone at AT&T corporate stores and Apple itself--there are no independent dealers making a cut off the service.


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Here in NY you can buy iPhones at many, many other places than Apple stores or ATT; within 3 minutes from me, there are at LEAST 3 ATT "authorized retailers" selling iPhones....

Who knows what Apple will do regarding unlocking phones...I am pretty sure ATT will take further legal action but Apple is another story. I believe that if/when the hack is released, the total of people who buy iPhones for use with this hack will be less than anticipated and following Apple updates will ruin the hack. I am not saying it will not be cracked again but who the hell wants to deal with that sht. The thing that really gets me about that theory from cnet is how they actually believe this was all Steve Jobs master plan....
 

Tinman

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Here in NY you can buy iPhones at many, many other places than Apple stores or ATT; within 3 minutes from me, there are at LEAST 3 ATT "authorized retailers" selling iPhones....
Apparently that is a case of independent AT&T distributors trying to stay relevant in the face if the iPhone. I would imagine they aren't making much money off of them, without the commission angle. A google search of "buy iPhone" didn't turn up much besides this (not counting Apple and AT&T):
http://www.cellular-blowout.com/apipac.html?utm_source=Google&utm_medium=CPC&utm_term=buy iPhone

They want $750. (Marked down from their "regular" price of $1,000. You gotta be kidding me!



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ps49556n

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Apparently that is a case of independent AT&T distributors trying to stay relevant in the face if the iPhone. I would imagine they aren't making much money off of them, without the commission angle. A google search of "buy iPhone" didn't turn up much besides this (not counting Apple and AT&T):
http://www.cellular-blowout.com/apipac.html?utm_source=Google&utm_medium=CPC&utm_term=buy iPhone

They want $750. (Marked down from their "regular" price of $1,000. You gotta be kidding me!



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Mike


yes I don't see how they make any money off them or how they obtain them for that matter. They refuse to let me in on their secret when I ask...All I can think of is that they buy the phones at MSRP and make a very small commission off new contracts and accessories...
 

kdarling

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I seriously doubt that Verizon was ever really an option. If Apple did go with Verizon then they would have 2 produce 2 different iPhones. One for the USA market (CDMA) and one for the rest of the world (GSM) this just doesn't make much businesss sense. I think the leaked stories of verizon were just a way to get leverage with Cingular (Now AT&T).
Many manufacturers make both GSM and CDMA versions. Nothing special about it.

Apple themselves say they went to Verizon... although (contrary to net lore) it was after they went to ATT. (What happened was Verizon said Apple also approached them... and everyone mistook that to mean they asked Verizon first. Not true.)

http://online.wsj.com/public/article/SB117168001288511981-euxzmjNFZTZhA_2z8OBtD6GK900_20070224.html?mod=blogs

Also depending on whose figures you look at Cingular is the largest US carrier, so why would you go with #2 when you have a much larger audience to sell your product to?
Simple. Because selling to EVERYONE is always a much bigger audience :)

I'm surprised no one's brought up the latest ATT gaff, btw. Apparently they're having to stop saying they have the least dropped calls. One of many articles:

http://consumerist.com/consumer/belated-honesty/att-stops-pretending-to-be-the-network-with-the-fewest-dropped-calls-293352.php
 

Tinman

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Many manufacturers make both GSM and CDMA versions. Nothing special about it.
There is often a delay between models--and CDMA is often last. Much easier to launch in Europe with an already-functioning four-band GSM model.


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RyanFavre

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I don't think two different versions of the iPhone is an issue. Europe is already getting a different version of the iphone--its 3G, the US version is edge as we all know.
 

tharmsen

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Nor do I think Jobs is happy that people are hacking ways to add applications. He wants control, he wants sales. If he didn't care about that, he'd have gone with Verizon.
I'm not sure how you're making the connection between Verizon, the iPhone and 3rd party applications... applications have nothing to do with the carriers.

Apple didn't go with Verizon because Verizon wasn't willing to give up a percentage of it's service plan income to Apple -- a practice that until AT&T did it was completely unprecedented in the mobile phone industry.

Yes, Steve wants the lock-down on the applications so he can sell more software or at least control what's installed on the iPhone... but this has nothing to do with the carriers.