Frozen Apples: The Unlocked iPhone Dilemma

In an effort to combat the "unlocking" of iPhones, Apple has made its latest iPhone software update into an assassin, capable of permanently freezing iPhones that have been illegally unlocked to work on networks other than AT&T, or that have been hacked to load unsanctioned third-party applications. This essentially turns the iPhone into a sleek, sexy, $500 brick, perfectly suited for holding down a pile of papers or being used for lively games of spin-the-iPhone.

Hardware makers have always struggled with cracks that allowed consumers to get around their licensed content or use their products in ways unintended by the manufacturers, and any consumer who tries to skirt the rules should be prepared for the potential consequences. The question is whether the punishment fits the crime, and what implications can this have for Apple's brand.

It is widely known that Apple is not profiting from the iPhone itself, but from the business relationship with phone providers like AT&T, who get to be the exclusive providers of the iPhone in their respective countries. Apple's position, and profit potential, would be severely impacted if people can just unlock an iPhone and use it with other carriers. This relationship is definitely something Apple must defend. The issue of third-party software installations is a murkier one. Is an attempt to improve your iPhone really an offense that should be punishable by death?

In my own opinion, Apple needs to tread carefully here. Those who unlock their iPhones to try to get around Apple's licensing deals should pay a price for it, although Apple's response of "buy another iPhone" may be a bit extreme. On the other hand, those who "mod" their phones to add new functionality are not trying to erode Apple's business model. On the contrary, they are the company's true fanatics. By permanently freezing those iPhones, apple risks alienating this group of rabid fans. Brian Lam, editor of Gizmodo, called this move "uncharacteristically evil". That is NOT something Apple wants associated with its smiling, happy, groovy brand.