Telecom & Wireless
Apple (AAPL): Unlocking The iPhone, Hammering It Partners
Published:
Last Updated:
Apple (AAPL) has begun the process of "unlocking" its new 3G iPhone, a move that caused controversy with the earlier version of the handset.
The unlocked phone can be used on any wireless network. That takes business away from Apple’s cellular distribution partners, lead by AT&T (T) in the US. An unlocked iPhone does not force consumers to sign expensive subscription deals with Apple’s carrier affiliates. That, in turn, undermines their ability to make money.
According to the AP, "Apple Inc. is putting on sale unlocked iPhone 3G in Hong Kong, allowing people to use it with any mobile phone carrier."
While Apple makes nearly $700 off of each unlocked iPhone it sells, it may be in a weak position to damage relationships with carriers. The new 3G iPhone has had connection problems when it needs to communicate with high-speed wireless networks. That has undermined some of the brand’s power with consumers. It also opens the door for competing products such as the Samsung Instinct and phones powered by the new Google (GOOG) Android wireless operating system.
Apple has not helped itself by launching a flawed 3G iPhone into a bad economy. It appears to be in the process of further battering its handset prospects.
Douglas A. McIntyre
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.