Star Apple to Brick Modded iPhones, Apple Boycott?
Linked by Smith Johnson on Tue 25th Sep 2007 20:53 UTC
Apple The internet is abuzz with the news that Apple intends to break iPhones containing third party applications. Unlocked phones are also likely to be victims of the next software update. While community reaction is generally negative, one blogger suggests sending an even stronger message to Apple by boycotting Apple on October 1. If you're running the Installer application, you may want to hold off on any iPhone firmware updates.
E-mail Print r 0   113 Comment(s) http://osne.ws/eex
Thread beginning with comment 274407
To view parent comment, click here.
To read all comments associated with this story, please click here.
but the iPhone is subsidized
by JoeBuck on Tue 25th Sep 2007 22:13 UTC in reply to "RE[2]: If they do this"
JoeBuck
Member since:
2006-01-11

Apple is pretty much admitting this: the reason for the exclusive deal with AT&T is so that Apple can share in that revenue. That means that the phone's economics don't work out as a stand-alone device (e.g. one that you can use with any carrier just by plugging in the chip for that carrier, like other GSM phones). It's not subsidized as much as the cheap phones that your carrier gives you for a steep discount in exchange for a signup, but they are subsidized.

That means that the UK law probably applies.

Reply Parent Bookmark Score: 2

RE: but the iPhone is subsidized
by rhavyn on Tue 25th Sep 2007 22:26 in reply to "but the iPhone is subsidized"
rhavyn Member since:
2005-07-06

Nope, it isn't subsidized. What you describe is revenue sharing. In order for the iPhone to be considered subsidized, the consumer must be paying less than retail for the device in exchange for a contract. That condition doesn't apply at all. Most likely the revenue that is being shared would normally go into a subsidy, but sharing revenue with Apple certainly doesn't make the handset subsidized to the consumer.

Not to mention the fact that the deal Apple has with AT&T doesn't mean anything in the UK, it's what the deal with the UK cellular provider says that matters there.

Reply Parent Bookmark Score: 3