Hackers hit back at iPhone update

The war between Apple and the hackers is heating up, after a "fix" for the recent iPhone update was posted online.

Apple's recent update for the iPhone's firmware rendered unlocked iPhones - those that had been modified either through software or other means to work outside of AT&T's network - unusable, and the firm has so far refused to back down from its hardline stance.

As part of Apple's lucrative contract with US network AT&T, customers who want the iPhone must sign up for a two-year term with the network and Apple gets a share of revenue generated by consumers using the iPhones. The tech firm has signed similar money-spinning deals with the European operators - O2, T-Mobile and Orange - who will be selling the iPhones from November.

Apple had warned those who had unlocked their iPhones that their handsets would be rendered unusable come its next update, and indeed it stayed true to its threat with the update, released last week, turning the phones into little more than expensive paperweights.

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O2 Pays Dearly For UK iPhone Exclusivity

O2 to hand over up to 40% of iPhone service revenues to Apple

DailyTech reported in early July that Spanish-owned O2 won exclusive rights to the Apple iPhone in the United Kingdom. There were vague details of revenue sharing bantered about among analysts at the time, but today the concrete details have come to light.

According to The Guardian, Apple will rake in as much as 40 percent of the revenues generated by O2 customers using the iPhone. This is in addition to the commission and revenue sharing imposed by O2's relationship with Carphone Warehouse. Carphone Warehouse will be the sole retailer for O2-based iPhones in the UK.

"I can't imagine any of the operators agreeing to terms like that," said one UK telecom official. "It is an extraordinary number."

Read the whole article @ the Daily Tech

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Apple picks O2 for iPhone

Apple confirmed on Tuesday that O2, the largest UK mobile operator, will be its exclusive UK network for the iPhone.

The US computer maker’s mobile telephone-cum-digital music player, with touch screen web browsing, will cost £269 in the UK. It will go on sale on November 9.

iPhone users will pay 02 tariffs starting at £35 a month. They will sign up to contracts that run for a minimum of 18 months.

The iPhone is available for $399 (£200) in the US. It was sold for $599 at the US launch in June, but Apple cut the price earlier this month.

Steve Jobs, Apple’s chief executive, gave details of the iPhone’s UK launch at the company’s flagship UK store in London’s Regent Street.

He said the price variance between the US and UK markets was principally due to taxation differences, as well has higher distribution and service costs in the UK compared with the US.

Mr Jobs declined to detail of the revenue-sharing arrangement between Apple and 02, but the operator is expected to pass at least 10 per cent of the revenue generated by iPhone users from phone calls and data functions, such as web browsing, to Apple.

View full article @ Financial Times

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