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Discuss apple concept: why is the iPhone actually locked? at the General - Hackint0sh.org; what do you thing, what is the reason for apple to sale the iPhone just ...
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    Respected Professional Array pendalf's Avatar

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    Question apple concept: why is the iPhone actually locked?

    what do you thing, what is the reason for apple to sale the iPhone just with att plan?



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    Control and money,

    Nokia aren't getting a cut of phone calls from every phone they sell (or are they)

    Usually locking comes about by a carrier subsidising the phone so that your calls eveenually pay off the cost of the phone and in 6 or 12 months you can unlock and go to another carrier. Apple are asking for the full amount up front and still locking the phone for 2 years.

    If they didn't lock the phone to one network then they would have to have arrangements with every network for a cut of calls. And we already know talks with that other mob fell through so they went with AT&T.

    We make you money you make us money.

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    Respected Professional Array pendalf's Avatar

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    @gonads:

    I agree with you, if the carrier would subsidize the phone!
    In iPhone case I donīt believe, that att do that...

    In every case I thing, if appleīd unlock the iPhone, theyīd able to sale a lot of more phones. That is the question I have...

    One of the reasons, which makes sence to me, is to alow userīs be able to use everythere all of the functions of the iPhone.

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    1 - Apple gets a monthly payment for each iPhone (from AT&T).
    2 - In exchange for that monthly payment AT&T wants an exclusive on the iPhone in the US.

    In short AT&T wouldn't be willing to give Apple a monthly cut if they didn't have an exclusive. Apple very much desires getting a reoccurring monthly cut instead of just a 'one time' profit from each iPhone sold.

    Hence the carrier lock...

    Dave

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    I read on a financial report that apple will make $2 per month for each phone that signs up with AT&T(with the new contract for the period of the contracT) and I think they make another $6 if the person is switching networks to be with AT&T for the iphone.

    since they sold 750,000 in the fisrt few weeks if by theory all the phones signed up (but ofcourse most didnts) they would be making atleast 1.5 million dollars prmonth from AT&T.

    Good for stock holders, also apple it trying to tax the companies that make apple accesories but that is a different story


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    Despite the couple of bucks Apple gets for new/switching contracts, there is a strong rumour(fact?) that AT&T actually subsidizes each and every sold iPhone with 150-200 USD for the exclusivity of being the only provider in the US.

    Or to make it short: it is ONLY about money, nothing else.
    The same concept will very likely be used in Europe and European cell service providers would actually be in the position to unite and refuse such a deal with Apple, forcing Apple to either offer an unlocked iPhone for everybody or to forget about the Euro phone market. In the end, Apple would be forced to offer unlocked iPhones but I doubt that European cell service providers are actually THAT clever to do that. Yes, a lot of people would switch to a new provider to be able to use the iPhone if Apple uses the same concept in Europe but at the same time, people would start hating Apple for that because most of them are actually already in a contract which has to be fullfilled or, for example most of the young people, are using prepaid phones which cost very little money.

    The European market is not the US cell phone market, especially the prices have to be right. Example (assuming that the "real" USD/EUR exchange rate is 1:1, financial pros understand what I mean): I pay 49 Euro (incl. tax) for a cell phone data plan with 5 GB traffic per month and another 50 Euro or so for phone services. Meaning: my monthly bill (business) is around 150 Euro but I do a lot of calls, I have THREE SIM cards using the same phone number and these three SIM cards can be used with the 5GB data plan (included), I have two additional SIM cards for family (I use them in the family car and in a kids' phone), etc.

    For 150 Euro, I have almost unlimited mobile internet and phone service access and I'm not talking about slow EDGE but up to 3.6 Mbps(soon 7.2) with UMTS/HSDPA, available almost everywhere in Germany. From this autumn on, we even have HSUPA, allowing up to 2Mbps upload speed.
    What do you get for 150 USD in the US from AT&T?!

    For most people over here, 150 Euro per month are insane and they wouldn't pay it. Most people I know are using flat rate phone plans, they usually pay around 20 Euro per month and thats it, maybe up to 50 Euro if they're using limited GPRS/UMTS data plans.

    So to be honest, I don't see how people over here would pay around 500-600 Euro for a 8GB iPhone WITH 2-year contract and an additional 50 Euro per month for regular services and unlimited EDGE data. Trust me, not many people would do that.

    Apple really has to be careful how they market the iPhone in Europe because people are used to cheap cell phone services and "cheap" (subsidized) phones from providers, so paying 500 Euro for a subsidized phone may not work over here. I paid 379 Euro plus tax for my Nokia E90 from Vodafone for a renewal of a 2-year contract and the E90 is considered to be top of the line over here.

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    what is about the iPhones wich are not activated by att?
    att must be angry, they subsidized phones and donīt have anything from...

    in this case the lock have to be very excpecial!

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    In the US to get out of a 2 year contract you pay a piddly $175.. here in Australia and Europe you'd have to pay the contract out. Here it's more like the remaining term x monthly commitment = big dollars!.

    That's enough of an incentive to stay on contract..... nevermind the phone being locked!

    O

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    Quote Originally Posted by ozzielad View Post
    In the US to get out of a 2 year contract you pay a piddly $175.. here in Australia and Europe you'd have to pay the contract out. Here it's more like the remaining term x monthly commitment = big dollars!.

    That's enough of an incentive to stay on contract..... nevermind the phone being locked!

    O
    what should you do with your iPhone, after you get out of contract paying 175 bucks?
    can you return it to apple?

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    Quote Originally Posted by pendalf View Post
    what should you do with your iPhone, after you get out of contract paying 175 bucks?
    can you return it to apple?
    The question is also: will the iPhone still work as an iPod/WiFi gadget or does the end of the AT&T contract also mean that with the next iTunes sync, the iPhone will be blocked again and needs to be activated again using a AT&T contract? Has somebody actually asked AT&T/Apple what happens if the contract ends? Just curious.


 

 
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