Scrumping
Several news articles this week that point out that roughly 1/4 of the 1 million Apple iPhones that have been sold are now unlocked. This is in spite of the fact that Apple has aggressively tried to stop this by mucking with the bootloader software to stop unofficial apps from executing.
Apple is doing this, of course, because they have a very lucrative deal going with AT&T which gives them $300-400 per account. Unlocked phones can be connected to almost any GSM cellular service, circumventing the Apple/AT&T monopoly. These worldly iPhones are available everywhere online for a 50% premium or so over the retail price.
I have a basic belief that business models that work by trapping people through legal or technological enforcement measures rarely work. It's too easy to get around and sooner or later causes a brand backlash.
Posted on January 30, 2008
