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.
Written by 
wrote, on June 11th, 2008
Thilak, does this mean that if iPhone comes to India in Airtel, the plans would be really expensive and all ? I mean, what do you mean, unlocking is exterminated.
Is this price cut really an installment scheme ? Damnit. Pls do a research on this for us, Thilak.
I’ll be tracking your blog.
wrote, on June 11th, 2008
Actually, this is a very good marketing strategy for the carrier as well as Apple. Quite how it evolves will be seen but the other handset manufacturers are already on panic mode. Just see the flurry of
wrote, on June 12th, 2008
Tech Roach: Vodafone will be launching iPhone on their postpaid plans in September. That’s what my source told me. Plans will obviously be pricey.
wrote, on June 13th, 2008
I think Apple is trying to sell in some installment scheme and the $199 is just the downpayment. But, who gives a damn ?!
Its still the same iPhone and its still possible for smart hackers like DVD Jon or Zibri to unlock it. Hackers are unstoppable.
And, I think everybody should boycott App Store. I mean, why not another App store maintained by a community which doesn’t demand the publisher to pay a fortune to get his app online ?!
wrote, on June 13th, 2008
The big question is therefore whether people will still be able to get hold of the original (non 3g) version to unlock those. I use one and absolutely love it but I’m not sure if the new 3g features are enough to convince me to get an 02 contract
wrote, on June 13th, 2008
Thats interesting… I’m sure there will be people that will find a way to unlock their phones and keep them functional.
wrote, on June 14th, 2008
I was thinking, why Malaysia is not in the “Coming Soon” list according to Apple Website? If let say there were an iPhone selling in Malaysia, how much would it be?
wrote, on June 16th, 2008
iPhone is very expensive in our country…
wrote, on June 17th, 2008
It was expensive in the UK (with a £35 a month contract) but it sounds like the 3g will only be £100 - the original iPhone was £269.
wrote, on June 19th, 2008
Am pretty sure people will find a way to unlock it no matter what Apple or GSM companies feed the iPhone with!
wrote, on June 20th, 2008
Yup, sure you are right Fahad, there will be a race to be the first to get it unlocked.