AT&T, Inc. (NYSE: T) is about to step into a 'vocal minority' land mine when it comes to interacting with customers using that expensive Apple, Inc. (NASDAQ: AAPL) iPhone on its network. Let's put it this way: if you're a techno-tinkerer and have modified the software on that iPhone but need to bring it to AT&T (which probably sends it to Apple) or an Apple store for service, prepare to be disappointed: you may be turned away forever, even if your unit is under warranty.This situation sounds like a legal pickle of pretty big proportions. Apple iPhone purchasers "buy" an iPhone and are free to do whatever they want with it -- by law, right? The problem seems to arise when iPhone owners change the software on their phone, specifically using a "hack" to make the iPhone usable on wireless carriers other than AT&T, among other things.
Does "modifying software" equate to an instant voided warranty? If so, the allure of the iPhone to techno-geeks and others who want to use it how they want it (not how AT&T and Apple want them too) may be causing some issues soon if iPhones start needing factory service. That is, unless that modification caused the problem in the first place. This is probably going to be the standard tactic AT&T and Apple will both hide behind.The iPhone's U.S. distribution deal is unique, as the now-$400 cost of the iPhone may not represent the true price of the device. U.S. iPhone users are supposed to be 'locked-in' to a two-year commitment with AT&T at a minimum of $60 per month. Apple gets a cut of that from AT&T, which suggests Apple is actually subsidizing some of the cost of the iPhone or is exerting its revenue greed over AT&T since that wireless carrier has a five-year exclusive on the iPhone.
From all the details so far, it is probably Apple behind this "voiding warranty" issue with modified iPhones, but with AT&T being a customer interface as well, it'll be dragged onto the field. Who will respond to this growing problem? We'll shortly know, since AT&T, so far, has no comment. And Apple? It's being very mum on this as well.
Regardless, the iPhone will continued to be chopped up (virtually, that is) to give customers the freedom to use the device as they want, with whomever they want (currently, T-Mobile in the U.S.). At the same time, both Apple and AT&T will grind their teeth, and will be shunning their noses at customers who paid for a warranty as part of a phone cost, but who will receive no service should the need arise as a result of iPhone modifications.
Reader Comments (Page 1 of 1)
9-24-2007 @ 2:53PM
Chris Tutor said...
Voiding warranties on modified products is not something AT&T and Apple invented. Change the software on your car's computer and see if you can get anyone to fix it under warranty. Most hackers modifying their iPhones realize they risk owning a $400 iBrick. Stop with the anti-Apple FUD and get back to talking about how AAPL is flirting with a new all-time high.
9-24-2007 @ 2:54PM
BILL said...
After you change the keys on the piano, after you pull apart the bridge on a guitar, after you remove the ice maker on a fridge and then put another model in, after you change the timer on a coffee pot ( well you get the point ) Let the geeks do what they want but don't expect the guys making and selling the equipment originally, to change the rules for you because you want to play detective and pull the item you just bought apart. How silly is that...to expect THEM TO MAKE AN EXCEPTION for YOU.
Bill
9-24-2007 @ 3:02PM
MS4ever said...
Yeah, screw Apple and AT&T. I am sure Zune phone will kill iPhone when it comes out. I have bought six XBoxes for modding and I messed up one of them. I returned it to Gamestop and they took it back. That's why MS is kicking Nintendo and Sony's butts. Don't listen to the fanboiz, Microsoft is the way to go with 95% marketshare. Vista is awesome too!
9-24-2007 @ 3:09PM
Paul said...
Software modification and physical alteration are two entirely different things. I've unlocked my iPhone so I can use T-Mobile, my carrier of choice. If I need service for a defective iPhone, I'll relock the iPhone software to exactly the way it was when I took it out of the box and expect Apple to fix the problem.
Locking down a GSM phone makes no sense. The reason GSM and SIM cards exist is so you can move your SIM card from phone to phone.
The US needs to move on and decouple handsets from carrier services. Apple and AT&T took a step backward for consumers and a step forward for themselves (greed, business savy, whatever you want to call it) when they entered into their agreement. I don't feel badly about unlocking my iPhone. I wanted an iPhone and I didn't want to break my contract with T-Mobile and start a new contract with AT&T, so I did what I had to do to use the iphone I purchased with my carrier of choice.
9-24-2007 @ 3:16PM
Mitch said...
Is this whole story based on one reported incident?
Let's get real - the 1 incident mentioned ended with the customer returning the iPhone.
Let's wait until this is an issue before it's an issue.
9-24-2007 @ 3:55PM
peterhailey said...
I don't understand how any company can demand that you use thier service as a condition of purchasing thier product. When you purchase a car can a dealer tell you that you can only purchase gasoline from them or the warranty is void?
9-24-2007 @ 4:08PM
John said...
THIS HAS ALWAYS BEEN APPLE'S PROBLEM! EVERYTHING IS PROPRIETARY. WINDOW'S WELCOMES HACKERS, NERDS AND GEEKS [OBVIOUSLY - MICROSOFT WAS FOUNDED BY ONE]. THE POINT IS WINDOWS SAYS TO GEEKS "USE ME, EXPERIMENT WITH ME." SHAW FANNING OF NAPSTER USED WINDOWS TO INVENT FILE SHARING. APPLE ON THE OTHER HAND DISCOURAGES INVENTIVENESS BY NOT BEING OPEN. APPLE IS REALLY THE ANTI-CHRIST OF HACKER EFFICIANDADOS AND GATES/MICROSOFT IS THE MESSIAH.
9-24-2007 @ 7:50PM
BurritoLover said...
What an outrageous turn of events. If you buy their phone, you should be able to use it however you want to. I know many people think Apple's customer service is top-notch, but I often find it sorely lacking.
http://www.blubet.com/bet/Should_modifying_your_iPhone_void_your_warranty
9-24-2007 @ 8:38PM
Rob said...
Modifying software on an electronic device is done on a daily basis without voiding warranties, the very device you likely are reading this message with is one such device.
Apple is working very hard to get their reputation down in the gutter with MS, and it would appear they are doing a very good job of it.
I used to recommend apple to people, now it looks like Apple has sold its hard earned reputation for a 5year deal with yet another nasty company AT&T (one of the biggest shadows hanging over net neutrality).
I hope they are forced to service every last iPhone, hacked or not.
9-25-2007 @ 12:19PM
cherie said...
quoting "MS4ever"
Yeah, screw Apple and AT&T. I am sure Zune phone will kill iPhone when it comes out.
Umm.. would this be like when the Zune killed the iPod? What a moron.
9-27-2007 @ 8:23AM
Bill said...
No state department of consumer affairs would permit the warranty to be voided if the problem is with the hardware instead (e.g. bad screen) - assuming Apple has a point of presence (e.g. Apple store in that state)
Now, if the software is messed up, the question remains: is it fixable?
If all that is required to fix a munged iPhone is a 5 minute reflash at the Genius bar, states can require that happen, and can regulate the price of that service (e.g. limit to $50)
States modify manufacturers' warranties all the time, which is why you always see boilerplate to that effect at the end of warranty descriptions.
10-01-2007 @ 4:47AM
Uri Schorch said...
Apple indirectly promoted the SIM unlocking program, anySim, that caused thousands of iPhones to not work after their new update and should be held responsible for replacing or reprogramming useless phones.
Apple.com promotes the use of third party applications at MacUpdate website:
http://www.apple.com/downloads/dashboard/news/macupdatewidget.html
MacUpdate.com offers the iPhone unlocking program AnySim 1.0 for download.
http://www.macupdate.com/info.php/id/25818
Since Apple.com refers it's customers to this other website that offers anySim, couldn't people hold Apple responsible for the bricking/disabling/renderingUseless, etc... of our iPhones?
Apple.com recommends MacUpate.com as a source of third party applications for it's products. Someone with more time than me needs to look into holding Apple accountable for the damage they caused to thousands of iPhones. This link between Apple and anySim should be more than enough...
(I have screen shots and links to Google's cache of these links if Apple tries to cover this up)