Wednesday, June 11, 2008

iPhone Unlocking to be Exterminated?

Apple took a different business model for the iPhone 3G. As per the new business model, the cellular carrier will provide the iPhone at a subsidized price, make-up the cost in monthly charges and don’t provide a chunk of their revenues to Apple. Previously, the customer had to pay the full retail price of the iPhone and carriers had to funnel their some their revenues to Apple.

What if you buy an iPhone 3G and unlock it? Since cellular carriers have subsidized the phone, every unlocked iPhone is a potential lose in revenue for them. According Crave’s source, Brits who walk into O2 stores to purchase iPhone will have to sign-up a contract before they can actually see the iPhone.

This means the only possible way to get an iPhone without being tied into the contract is by opting for pay-as-you-go (prepaid) options. The plans and pricing of such a prepaid scheme has not been announced yet, but it will definitely cost a little extra.

Moreover, the App Store will be launched in July and probably unlocked iPhone users won’t be able to lay their hands on the third party Software, which are available. To add more fire to the business, iPhone is coming to 70 countries. In the past, people living in these countries had no other choice but to buy unlocked iPhone. Unlocked iPhones will lose their appeal and that puts the whole unlocked iPhone business at risk.

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