Well, there’s now a number of sites that are now selling unlock keys for the iPhone, as TUAW reported, and a number of people have been wondering how long it will be until Apple posts an iPhone software update that overrides this hack. But personally, it is my opinion that it would be more beneficial to Apple to allow the iPhone unlocks than to stop them, and here’s why.

Apple has an exclusive agreement with AT&T to have the iPhone be restricted to AT&T’s network only, and I would assume that that means that in the agreement, Apple is also obligated to override any hacks that may cause the iPhone to be unlocked to other carriers. Obviously, we can’t see the specific details of the agreement, but I would think that if Apple wasn’t obligated to override these unlocks with software updates, then that would be because there was specific language in the AT&T-Apple agreement. But let’s try both scenarios.

Suppose Apple is not obligated to override the unlocking hacks. That means that suddenly, the possibility of an iPhone opens up to many more people. The people who love the thought of having an iPhone (those things have a 92% approval rating, after all), but perhaps are stuck on an existing contract, or just can’t stand the thought of contracting their life (okay, their money, anyway) to AT&T, now have a solution. They can buy an iPhone, unlock it, and then they’re good to go! This totally opens up Apple’s iPhone market a bit more, and I’m sure Apple would like that.

But then, suppose Apple is obligated under the agreements to override the unlocking hacks. What if they just refuse to do it? After all, for a cell phone network<->creator agreement, Apple certainly has more control over the iPhone’s software than most cell phone manufacturers. So what could AT&T do to force Apple to override the unlocks? Nothing. About all AT&T could do would be to terminate the exclusive agreement. But then, that would mean that Apple would now have a finished toy that’s already sold a million units in just over two months to dangle in front of the faces of the other companies like Verizon and T-Mobile, who no doubt are suffering due to Apple’s newfound iPhone dominance, and they’d be willing to sign up with Apple in a minute, which would, again, expand Apple’s potential iPhone market. Obviously, AT&T couldn’t kill something that’s been so successful for them just like that, so they’d probably have to let Apple allow the unlocks to stick around (see the previous paragraph).

Regardless of these, the fact that the iPhone has now been unlocked puts Apple in the advantage. Apple will win with a larger customer base, regardless of whether AT&T cracks down on them or not, and AT&T will lose. The only way that Apple can lose (and have AT&T win) is if Apple does go ahead and crack down on these unlocks, but that would be shooting themselves in the foot, and given Apple’s lax policy towards hacking the Apple TV, I think that Apple is probably going to be smart enough to live and let live for this time around.

Tags: Apple, article, AT&T, hacks, iPhone, opinion, unlocks