iPhone unlocked: AT&T loses iPhone exclusivity, August 24, 2007, 12:00PM EDT

The iPhoneSIMfree.com team called us up to prove their claim that they cracked Apple's iPhone SIM lock system, and prove it they did. (No, we don't have a copy of the unlock software, so don't even ask us, ok?) The six-man team has been working non-stop since launch day, and they're officially the first to break Apple's SIM locks on the iPhone with software. It's done. Seriously. They wouldn't tell us when and how they would release it to the public, but you can certainly bet that they'll try to make a buck on their solution (and rightly so). We can hardly believe the iPhone's finally been cracked. No, scratch that -- we just can't believe it took this long.
Again: we can confirm with 100% certainty that iPhoneSIMfree.com's software solution completely SIM unlocks the iPhone, is restore-resistant, and should make the iPhone fully functional for users outside of the US. Read on for details and links to our video, and check out the gallery of images below.
Gallery: iPhone unlocked
Notes on the install
- The unlock process took only a couple of minutes. From our end it was totally painless.
- Once you put your new, non AT&T SIM in the device, you have to go through the usual activation process. This can, of course, be done by anyone anywhere with the right tools (like iASign or iActivator)
- We tested with an active T-Mobile SIM -- after the hack was finished and we reactivated we immediately got full bars and the T-Mobile carrier info popped up in the top bar.
- Everything is otherwise the same, except the menu system now has a couple more options. The root menu has Carrier settings where you can select your preferred network if you don't want to roam.
- The General -> Network menu now has an EDGE network settings area where you can input your carrier's APN and username / password. We put in our T-Mobile info, and were immediately online. (Apparently these hidden menus were added in the 1.0.1 update, they tell us. How convenient!)
- Visual voicemail isn't in the cards -- sorry. That was, of course, to be expected because it's a special AT&T network-specific feature right now. When you hit the voicemail button you are taken immediately to your carrier's default voicemail line though, and that works just like it would on any other phone.
- Everything is confirmed as working on a non-AT&T network: SMS send / receive, internet (including Safari, Mail, Google maps, etc.). YouTube doesn't work out of the box, but that's to be expected. If you're not on AT&T you have to manually activate YouTube -- here's the guide on how to do that. (YouTube is the only app you have to activate like this.)
- We know, it's kind of crazy, but this isn't a hoax.
- No, sorry, you can't have our unlocked iPhone.
- The iPhoneSIMfree.com guys claim this method is restore (though not necessarily upgrade) resistant. We have no way of knowing whether Apple will be able to disable this SIM unlock with future iPhone software updates, but we can confirm that it is restore-resistant.
- We performed a full restore (v1.0.2) on our iPhone and successfully activated it using an inactive AT&T SIM.
- After fake-activating our iPhone, you merely pop out the AT&T SIM, put in the foreign SIM of your choosing, reactivate, and you're done. "Boom," as Steve might say.
- Restoring from an iPhone backup in iTunes worked perfectly despite the lock and foreign SIM. The only thing to notice was the phone number is now listed as "n/a" in iTunes. Big whoop.
- No, seriously. You can't have our unlocked iPhone.
Before you get in a tizzy claiming it's a faked video, please note that:
- We show the T-Mobile SIM at the beginning and end.
- The video stream does get cropped toward the end. That's actually just a crop to make sure the phone number on the second iPhone isn't shown. No frames of the video stream were removed, it wasn't a cut.
- Just so you could be extra sure it's real, we even left in the GSM radio noise.
- Dude, you can unlock your own iPhone soon, ok? You can't have ours.
[MP4] Download in wide VGA (14MB)
[AVI] Download in 720p HD (44MB)
[AVI] Download in wide VGA (14MB)

















Reader Comments (Page 1 of 9)
c. baines @ Aug 24th 2007 12:03PM
oh my
Homeboy @ Aug 24th 2007 12:51PM
That's what AT&T will say now when their iPhone plans will be plummeting. Apple on the other hand will be cheering when their iPhone sales will sky rocket.
Oh as soon as the software is out expect a fix from Apple. They will not let this one go by.
Jamar @ Aug 24th 2007 12:56PM
Don't certain European countries require the carrier to unlock the phone once contract term is over? (For that matter, is there any place that prohibits those activation-type schemes?) If they leave no way to unlock the iPhone, wouldn't they be non-compliant with said law, and face penalties?
Joe Smith @ Aug 24th 2007 1:35PM
so I just activated my iPhone with att a couple days ago. Am I mad? No... I have rollover minutes. But even better, this will make roaming much cheaper.
Matthew @ Aug 24th 2007 4:11PM
In response to Homeboy, who said: "Apple on the other hand will be cheering when their iPhone sales will sky rocket."
No they won't. Apple makes royalties from AT&T through their exclusivity agreement. Apple makes money on the phones, but they stand to lose royalties if people start unlocking their phones. You can bet they'll patch this quickly.
Stretch @ Aug 24th 2007 6:16PM
Matt, if more iphones are sold that wouldn't be if people had to use AT&T then it is a net gain for Apple. Assuming the iphone costs less than $400 to produce and ship.
Gudbergur @ Aug 24th 2007 7:15PM
Apple will make less money from the royalties through AT&T - however, i think they will make up for it through many more phones sold, because MOST people that will be unlocking their phones are in other parts of their world (keep in mind Americans, the world doesn't end at U.S. borders) and only a minority that is unlocking it to go from AT&T to T-Mobile.
Razor @ Aug 24th 2007 11:09PM
Right, we are graced with Canada and Mexico...
Henna @ Aug 27th 2007 10:42AM
I thought it's as simple as removing the sim and rebooting the phone.
Henna
http://www.prankvideoz.com
M Gates @ Aug 24th 2007 12:05PM
w00t! Down with the proprietary Apple regime!
Eric M. @ Aug 24th 2007 12:21PM
Its about time.. Shessh.. So now I think its appropriate of Engadget to have an iPhone giveaway (read a fully unlocked iPhone giveaway) =D. I'll be expecting the giveaway in the upcoming week. Thanks =D.
Joseph @ Aug 24th 2007 1:18PM
apple? you mean At&T? you didnt stop the phone from being iphone.
zuricher @ Aug 24th 2007 12:07PM
yee-haa iPhones for Switzerland!
BoZs13 @ Aug 24th 2007 1:50PM
I KNOW!!!!!!!!!!!! AWESOME :) I travel to Zuri a lot :)
Dave @ Aug 24th 2007 5:58PM
I gotta go to Zuri too :D
Jonathan @ Aug 24th 2007 12:07PM
Can i ha...oh dang :(
aeo @ Aug 24th 2007 12:07PM
Heh... the first image that pops into my head is William Wallace splayed out on the disemboweling table screaming "FREEDOM!!!" but with an iPhone... ya know?
Gratz iPhoneSIMfree.
christapher @ Aug 24th 2007 12:08PM
alright!!! now i can use the iPhone on my carrier!... wait... im on ATT already. damn.
EbonyDad @ Aug 24th 2007 12:14PM
Yes, but this now means you don't have to sign a two year contract in order to get an iPhone!
MatthewJ @ Aug 24th 2007 2:08PM
How, exactly? Considering you can't buy the iPhone sim-free yet, you'll still have to take out that AT&T contract to actually get your hands on the hardware.
numo @ Aug 24th 2007 2:55PM
No, you can buy the iPhone from an apple store, and then you unlock it!
Information Central @ Aug 24th 2007 9:06PM
You just walk in and buy the damned phone! There is no contract until you ACTIVATE the phone.
Daniel @ Aug 25th 2007 1:51AM
haha u cant get into the phone without activating it! sooo either way u must first join AT&T because the phone is on lockdown u cant do anything but stare at it until its activated with AT&T =/
brian recchia @ Aug 28th 2007 7:00PM
@daniel, you can easily hack the activation and there's a link on the top of this page. so you just do that, run the unlock software, and pop in your non-att sim.
block1of4 @ Aug 24th 2007 12:10PM
it was unlocked when iphonesimfree unlocked it, not when engadget posted this article on 8/24/07 12pm edt.
Nick @ Aug 24th 2007 4:58PM
lmao! i love how you get bashed for pointing the truth out.
James Tusick @ Aug 24th 2007 12:11PM
Wow, now an iphone now only makes you "pretty" cool.
AC @ Aug 24th 2007 1:16PM
Yes, but given that you can now buy an 8GB iPhone from Apple for $499 (refurbished) and use the phone on any network that accepts a SIM, that's a lot cooler than those folks who stood in line outside of AT&T on June 29th and 28th and 27th and. And it's cooler than the fifty-seven people that are holding onto their Zunes.
Hugh @ Aug 24th 2007 3:05PM
57? Now your overdoing it ;)
mastershake @ Aug 24th 2007 3:43PM
@AC
lol that was funny
huh28 @ Aug 24th 2007 3:53PM
so you can buy a refurbished w/o getting ATT service?
interesting...!
TC @ Aug 24th 2007 12:11PM
Woooohoooooooo!!!!!!
Tom Hands @ Aug 24th 2007 12:12PM
Hackers: 5
Apple: 0
Ron Hands @ Aug 24th 2007 12:18PM
Big deal, very few people will actually hack their own iphone just so it will work on another network. Also, do you hear that noise?? That's the ATT/Apple attorneys knocking on the hackers door.
ot- Tom Hands, any relation??
Cody @ Aug 24th 2007 12:21PM
Actually,
Hackers: 5
Apple: 190832890123
This won't hurt Apple in any way, it will hurt AT&T, but this will only encourage more people to buy iPhones. Apple will only profit from the unlocking possibility.
Tom Hands @ Aug 24th 2007 12:22PM
Heh yeah I was wondering how long it would take the cease and desist to get going.
Oh and I don't know of any Rons in the family, plus I live in the UK.
sickofit @ Aug 24th 2007 12:56PM
@Ron Hands:
Explain to me exactly which grounds a cease and desist order would be based on? AT&T has a contract with APPLE to be the sole carrier, not with the general public or a purchaser of the iPhone. AT&T could therefore not bring a claim for cease and desist based on contract principles (maybe they could claim for breach of contract against Apple for failure take adequate precautions to prevent the phone from being unlocked, but that wouldn't stop 3rd parties from unlocking the phone). Therefore, there are no contract grounds on which to bring a claim.
So, exactly which grounds are you basing this statement on? Do you propose that AT&T can just come and say "stop interfering with my monopoly on the iPhone service"? If so, you're completely wrong. While they can include terms in the purchase and sale agreement disclaiming the warranty for doing things such as this, how the hell do you propose they stop someone from tinkering with their own damn property?? Come on!
ChrisG @ Aug 24th 2007 12:50PM
actually this does hurt apple because old Steve Jobs get paid according to their exclusivity deal for every iPhone contract with ATT
Xzavier @ Aug 24th 2007 12:54PM
"Hackers: 5
Apple: 0"
No big deal. When Apple is ready they just simple zap the PRAM to reset the counter back to 0/0
:D
boolean22 @ Aug 24th 2007 1:46PM
Apple could only issue a cease and desist crap IF THE SOFTWARE INSIDE THE IPHONE WAS CRACKED TO RUN IN (say) A SAMSUNG from Helio.
The Software is still attached to the device it was meant for, and the license for the use of the device is not violated.
Frankenstein Black @ Aug 24th 2007 2:02PM
Hackers: 5
Apple: 190832890123
AT&T:.........../´¯/)
..............,/¯../
............../.../
........../´¯/'..'/´¯`·¸
......./'/../..../.../¨
......('(..´...´. ¯~/'.')
...................'..../
.................... _.·´
....................(
LoadStar @ Aug 24th 2007 2:42PM
Also, don't forget that the Library of Congress within the last year determined that breaking phone carrier locks was fully allowed by the DMCA.
(This is where that rule actually comes in. When it first came out, most people misread it and thought it said that the carrier would have to help you. Not true at all, of course. The rule does say that if YOU want, you can do so without having the DMCA thrown in your face.)
Frank @ Aug 24th 2007 3:08PM
It is not illegal to un-lock cell phones in this country. It was specifically excluded from coverage under the Digital Millennium Copyright Act.
Anthony Baron @ Aug 24th 2007 8:47PM
How about tortious interference with a contract?
George @ Aug 25th 2007 1:44PM
hackers 5
apple $10000000
Apple makes out in the long run on this. Win win for them.
Captain Obvious @ Aug 24th 2007 12:13PM
I'm sure your government has nothing better to do than track where you're going. You must be very important.
Mike Morris @ Aug 24th 2007 12:13PM
I personally think it was silly of Apple to ink a full 5 year exclusivity deal in the US with AT&T, but it wouldn't surprise me one iota if this sim unlock was fully anticipated by Apple. I'm sure Apple could have done a better job locking out other carriers if they wanted to.
John @ Aug 24th 2007 12:21PM
I doubt that - if you plan to be in the mobile phone business, you really don't want to be antagonizing carriers. Also, it took a fairly long time to unlock it, so I'd have to guess that Apple did what it could to stave it off. The question is, will Apple shove a firmware update down our throats to cut this off?
engadget.com @ Aug 24th 2007 1:22PM
For the software hack, I am sure apple could easily screw with them, for the hardware hack that was done yesterday, there is no way for apple to patch that, they would have to replace a physical piece of hardware in all existing phones. As for future production, they can mess with the hardware hack on the new phones.
Alex @ Aug 24th 2007 1:57PM
I think they planned it. Note that in the article Ryan says that he entered the information in hidden menus that were added in the 1.0.1 update.
Conspiracy!