Hey, you there, with the unlocked iPhone. I bet you're feeling pretty good about it, satisfied you're totally getting over on the Death Star. But have you ever thought about the little(r) guy, the outside contractors doing the flooring, you might be screwing over? Cause you are. Synchronoss makes the activation magic happen for the iPhone, as well as a lot of other gadgets. But the millions of unlocked iPhones floating around—a trend they expect to get worse—is costing them a quarter of their revenue, nearly $30 million. That bit of news today nuked their stock value by 44 percent, meaning you guys are basically killing the company. Do you feel so righteous now? Oh, okay. [Alley Insider]
Unlocked iPhones Putting Gadget Activation Company Out of Business
6:33 PM on Tue May 6 2008
By matt buchanan
6,486 views
76 comments










Comments
Jeez! You guys are all jerks.
eh... they knew it was going to happen. iPhones are useless without jailbreak...
Let me Check, um using something i paid for(bought with my own money NOT rented) with any network I choose, yup im okay, sorry but im not gonna lose any sleep over this.
Well, maybe they will think twice about locking a device. Should never have done it in the first place. That will teach them. Serves them right. Bye-bye and good riddens to bad rubbish.
I find it funny that a post of this nature would even find its way on to Giz's pages considering all the coverage you guys and gals give a new unlocking procedure each time the iPhone firmware is updated.
Remember, when you're pointing your finger at someone, you have three fingers pointing back at you.
Gizmodo post numerous exploding death star articles as the Phone becomes more and more unlocked, and now you want us to feel guilty? As I said to the teddy bear maker, get stuffed.
I personally don't care, especially since all devices should never have been locked anyways. I am not to sad about a company going out of business that shouldn't even have been there at all.
Ok let me see if this makes any sense. I buy an iPhone, which makes the the owner of the device, which in turn grants me the ability to use it how I see fit. I unlock it and activate it myself on a different carrier. And so I end up hurting two CORPORATIONS in the process (Synchronoss AND AT&T). BONUS!
ATT isn't going out of business, infact s is growing faster than some other wireless companies.
Thery aren't "killing the company", for them to do that they would have to activate iPhones and iPhones alone, now putting all of your eggs in one activation basket like that would be retarded and I doubt that is so. Now every unlocked iPhone is a missed opportunity, agreed, however carrier options are a must against the tyrannical despot CEO names Steve Jobs.
named*
Anyone who can loose 30 Million dollars in revenue and still have something to show for it afterwards is most definitely NOT a "little guy".
I'll also agree that the phone should have never been locked down so tightly in the first place. Regardless of weather it "fits the Apple mold". People who buy a hand-held computer ought to be able to do with it as they please.
Psst, hey Steve, Lets keep things open source in the first place and show the world the creative talent that lies in waiting.
well then do not sell me a 500dollar device thats locked. You try and abuse my rights thats what happens. Look at Europe none of the phones there are forcibly locked, you always have the option to buy an unlocked phone...
Somebody call the Waambulance.
A company provides a unwanted service should go out of business yesterday. Why takes so long!?
Why don't they just sell them officially unlocked or something? I guarantee they would sell a shitton of them.
What if I wanted to spoon with my iPhone naked? Is there a rule against that???
Maybe I'll make a snuff film with my iPhone.
The unlocked phones are not making people lose jobs.
Those people simply would not use AT&T and the iPhone the way it is now.
There would simply be less iPhones in circulation.
Sure there would be a few that made the switch, but the key word is "few".
M
the value of their stock reflects the effectiveness of their activation system. Or the stream(or lack of) of future income (iPhone 2...)Actually, it should have plumped earlier...
Had they made it more robust ( hiring a few better programmers) they would spend a little to save a lot.
Or, if there is no way to secure the activation process, then they were overcharging AT&T for their services, or their stock was overvalued to begin with.
PS: I am not judging their or jailbreaker/unlocker's actions. I am just commenting on the economics response to them.
I'm sorry, I wasn't aware that all companies must have my money.
Guess that's what happens when your business model is based on ripping people off... Who actually believes that they should still have to pay for "activation"?
@surfer88: There seems to be some sort of correlation on this blog between being an early commenter on a post and having difficulty detecting the subtler nuances of the English language. I'm looking at you, Irony -- don't be shy!
Device owners aren't responsible for some service company's survival, I could buy ten iPhones, unlock them and use them for doorstops if I want. See, when I BUY something, I then OWN it. F*ck Synchronoss if they have a faulty premise propping up their stock value. Not my problem, totally guilt free.
For those of you that unlocked it, are you using it with Tmobile? How much are you paying for decent level of service options (Like, 500 minutes, unlimited text, unlimited web).
I have a HTC Mogul (Sprint Mogul, whatever) on Sprint. I am getting 500 minutes, unlimited data, unlimited text, unlimited sprint to sprint, roaming, phone insurance, and whatever I am forgetting, for about $32 a month.
If they do release an iPhone "2" with 3G and Tmobile gets their 3G network in gear out where I am (near Detroit, MI), I might be onboard.
I know I wont be able to get service for what I am paying with Sprint, but for those of you with maybe similar options to what I have, what are you paying?
Much thanks
It's like feeling bad because you also hacked your phone to accept custom ring-tones. The ring-tone market is completely artificial, and is just another way for wireless providers to leverage their control to squeeze you for more money.
Maybe they should just go into business unlocking phone on the side.
Mobile phones shouldn't be locked anyway.
@ThePeacemaker02: Because Apple's greedy, and they get a kickback from each and every AT&T contract. Reportedly, 75% of their income from each iPhone is from the contract, not the sale itself.
So there's the thing. Apple may sell more iPhones if they're unlocked, but they'd have to sell 4x as many in order to make it worth their while.
I'm going to be as straightforward as possible: I don't give a FUCK!
*Takes deep breath and prepares for rant*
First of all, the iPhone shouldn't require activation, nor should it even be locked to a carrier in the first place. But even though it IS locked, why require flimsy activation? Apple would have led a revolution by having an "open phone" and they blew it.
Secondly, Apple couldn't make an activation system of their own? They had to license this technology from somewhere else? Fuck you and your activation... Again.
Third of all, the iPhone is a piece of shit phone. I'll be the first Apple fanboy to say it (I guess it doesn't quite make me a fanboy anymore though). I don't find its call quality spectacular, and while it is revolutionary with its touch screen, getting to my phonebook takes more than 1 button press. It does make a good iPod though, and a killer mobile web browser. Go Blackberry, you'll get a much better phone.
I feel better. Thanks.
@tkatz: As to your "Third of all," That's why I got an ipod touch. Good iPod/web browser, and don't have to worry about the rest.
Everyone else: I know this has been said a million times, but if you don't like something, don't buy it. You have no inherent "right" to non-crappy phones, or to unlock a locked phone and go to a different network. If it weren't for the Apple/AT&T deal there wouldn't be an iPhone at all, and if carriers had to give service away for free or whatever crap you want there wouldn't be carriers at all.
Ok, that's all.
It amuses me that you douches can act so self-righteous about buying something where in the terms of the sale you agree (in bad faith) to an activation.
The sale price of the iphone was set by Apple by factoring in the business deal and revenue sharing they do with at&t. While it is not as direct a provider subsidy as most phones at a retail outlet are, the price they offer the phone at includes a term of service.
If you don't want to activate with at&t, then don't buy it. You can certainly get pompous and self-righteous about that. But pretending that you have the GOD GIVEN RIGHT not to activate your iphone with at&t just makes you look ignorant.
@kenenas "the value of their stock reflects the effectiveness of their activation system." <-- says it all.
I would only add this; if they wanted to lock it, they could, but I would never have bought one. Someone got a lot of my money when I bought it, and that reflected its value to me. That value was based on may ability to unlock it. If it didn't go to the right place, there isn't a lot I can do about it.
You buy into the wrong dilemma. At lest for me, its not between activated and unactivated iphones, its between unactivated iphone and samsung.
@liku: Let's say you buy and iPhone for $400 or whatever. If (hypothetically) it costs $410 for Apple to actually produce the phone but Apple gets $20 from AT&T, Apple would clearly prefer that you bought the Samsung rather than unlocking.
Obviously that's not the way things really are, but the idea is the same.
I'll shed the same amount of tears as I did for the buggy whip manufacturers. Sorry, but change is and should be the way of American business.
yea well charing 35 bucks or whatever they do to activate a phone is retarted anyway. if i can do it for free by myself why wouldnt i? i have no simpathy for a company that charges 35 bucks for press a couple of buttons
@matto: I'm equally confused why a consumer would pay attention to and make purchasing decisions based upon a company's profit model. Seriously, it seems like your taking Apple's interests as your own. As a consumer, I'm only concerned with what my dollars will buy me, whether real or potential cost/benefits. I'm not concerned in the least with how Apple "intends" to make a profit. It doesn't concern me in a micro-economic sense whether their intended profit margin is achieved.
@daversW: I urge you to run your own cost-free wireless phone carrier. And best wishes that it will not be 'retarted'.
@newgalactic: Taking your rationale to the logical extreme, I assume you avoid purchasing anything, and steal it instead? Because thats where your argument ends up.
I don't care about Apple's profit model. I care about honoring agreements I make. If they are not beneficial to me, I don't enter into them.
Hmm, I guess Apple customers aren't as loyal as they claim...
@bobmarley101: You're just jealous because you got a crappy iPod Touch isntead of an awesome iPhone. :D
Well, you don't commit crime to keep the prison industry in business...
@surfer88:
Shut up.
hmmm....my moolah, my carrier choice, and my monthly bill, I don't feel bad, sorry!!!! Should have been an open source to begin with...not all locked up for the greedy corporations to nickel and dime you to death over, there's enough of that now with gas, oil, food etc. and it's only getting worse, sorry...I don't feel bad one I-oda (spelling?)
Faslane
And they (Synchronoss) should have known that someone sooner or later would figure it out and unlock it, I'm sure the millions they made already rests them nicely at night. Seriously! Not EVERYONE has a Jail broken iPhone, and when the 3G comes out they make millions more again, until that is jail broken. I doubt they're "hurting"
Wait, you want me to feel sorry for a company whose job it is to screw another company out of THEIR revenues?
Is that irony?
@ Redrabbit: As far as Apple's loyal customers....we bought the phone didn't we??? Look at their profits over the last decade, then get back to us..
Not starting a flame war here, I'm just saying...Apple has PLENTY of My Money, my jailbroken phone should be a perk for all the dough I've given them over the last 20 years!
Faslane
Bought it? Pwn It! My Motto.
It's mine to do as I see fit, I have the receipt, it's a purchase not a lease!
Despite not having (and not wanting) and iPhone... well, why would I feel bad about cleaning my desk or taking the garbage out?
Sorry locking company, but blame it on Apple. They shouldn't have hired your services in the first place.
heard of the invisible hand? Stop whining, synchronoss!