T-Mobile responds to Vodafone iPhone injunction: $1,500 unlocked iPhones

T-Mobile just issued a press release in response to Vodafone's efforts to unravel the iPhone exclusive offering in Germany. In the statement, T-Mobile claims that they will appeal the ruling (they have two weeks to do so) and will continue selling the iPhone unabated. T-Mobile defends the locking strategy as good for consumers who receive preferential data rates and access to T-Mobile hotspots as a result. In addition, T-Mobile says that it will likely claim damages against Vodafone for the mess they're causing. Perhaps T-Mob hasn't noticed all the free press they (and Apple) are receiving?

Update: Reuters confirms that T-Mobile will sell the iPhone in Germany unlocked -- that will be the first unlocked iPhone officially available. The catch: it's €999! That's $1,478 at the current exchange rate for a phone which cost €399 (with contract) just a few minutes ago. Hackers and unlockers, your services are still required.

[Via Pocket-lint]

[mushrooshi @ Nov 21st 2007 5:59AM]

Once again, GIVE IT TO THE DAMN CUSTOMERS!

[Bobby @ Nov 21st 2007 8:42AM]

Way to go Steve !
Pump those euro suckers !

[Andrew @ Nov 21st 2007 10:47AM]

Can the hackers just use the unlocked firmware to load them on iPhones here in the states? I don't know how that works.

[Rowdehaj @ Nov 21st 2007 4:44PM]

Bobby:
Way to add to an internationally-read article, idiot.

OT:
I'm not surprised at the price of the unlocked iPhone offering, it makes sense to make it as unattractive as possible whilst still adhering to European (German/French) laws.

[KarlW @ Nov 22nd 2007 3:04PM]

Sorry, but this "solution" certainly doesn't comply with EU Competition Law.

The law states that you may not abuse the common market, where abuse is defined below.

"Such abuse may, in particular, consist in (a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions ..."

By giving the unlocked phone too high a price, they are violating EU law. Think of it as creating a monopoly in the iPhone market in favour of the locked model. The law will force that price down to something like €499 or €599 (still a lot, but not nearly as much as €999). If you're thinking about buying one of these (and seriously, who is?), wait it out until the courts have had a look at the deal. Vodafone won't let this one sit.

[LaZer @ Jan 23rd 2008 12:55AM]

Yes...GIVE ME THE BLESSED iPhone already. And I don't want that loathsome at&t as part of the deal either.

[soopamax @ Nov 21st 2007 6:13AM]

it's 999euro!

[pscs @ Nov 21st 2007 10:20AM]

i can buy 2 normal iphones with spare change...

[LondonConsultant @ Nov 23rd 2007 8:53AM]

I'm thinking of buying some iPhones, unlocking them, and advertising them for sale at 1999 euros each. I should get twice as much publicity as T-Mobile. Or maybe I should advertise them for 9999 euros and await a call from Oprah...

[Mario @ Nov 21st 2007 6:19AM]

the sell it for 999 Euros ... thats really crazy.

[Wonderkid @ Nov 21st 2007 6:22AM]

I am on Vodafone here in the UK and they would have been a much more suitable carrier. If Apple build 3.5G into the next model, improve the PDA type functions and upgrade the camera to 3 or more megapixes with auto focus, and do a deal with Vodafone, they will sell a lot. National high speed data coverage is vital. Reliance on WiFi is NOT the future.

[fabian @ Nov 21st 2007 8:18AM]

they will anyhow sell a lot!

[CUBSWILLWIN @ Nov 21st 2007 8:25AM]

exactly! I'm in the US but I know a lot about o2, vodafone etc. Vodafone is a very good carrier for a soon legend ohone like the iphone. You'll get better service then darn orange and tmobile. Vodafone is also more appropriate for a 3g iphone. Who knows, instead of 3g apple will skip and go to 4g for america. Wi max and all.

P.S: I send so many things to engadget. They get published. But I don't get credit!!!!

[Dale @ Nov 21st 2007 10:10AM]

I've never used Vodafone so I can't speak for their service, but O2 (especially in their former guise, Genie) were always far better at putting together tariffs with decent amounts of free data, text messaging and call time. I used them up until I left the country having dabbled with Orange (expensive, arseholes) and T-Mobile (great customer service, rubbish tariffs and phone offerings).

In that respect, they were certainly the better choice for putting together an iPhone-specific tariff in the UK; and their coverage was pretty formidable wherever I went.

[maximus @ Nov 21st 2007 8:07PM]

Exactly what is needed.

Then it truly would be the ultimate phone/mp4 etc.

But for gods sake make it bigger than 8GB! 8GB for all music and videos is shizzzen to put it nicely.

[snife @ Nov 22nd 2007 2:20AM]

Vodafone are a company that think charging 35 pounds for 250MB data is fair (or 8 pounds a megabyte if roaming in another country) - I don't see them offering proper unlimited data which is what you would want. I'm not much a fan of O2 either as they do not like letting anyone cancel their contract.

IMHO, if they bring out a 3G version then the best choice they could make would be to go with three in the UK, a company that give free data roaming, unlimited data and decent call packages for a reasonable price, plus they dont mind offering skype so maybe there would be a possibility for VOIP to be added to the iphone.

[rezisluh @ Nov 21st 2007 6:43AM]

wonderkid, i'm on vodafone too; apple isn't going to switch uk carriers just like that; unless they're legally forced to unlock the phone. i think wifi is the future btw, so does google.

anyone can unlock the iphone; i'm just hoping apple is stopped from bricking it with the latest firmware patch - that's the part i find unacceptable.

[Vanillacide @ Nov 21st 2007 10:48AM]

So what's the problem with changing network? Unless O2 simply doesn't have coverage where you live or work (e.g. like Orange and T-Mobile simply don't work in my house).

I am not married to my MNO, I switch around when it suits me: number portability means I get to keep my number.

I bought an iPhone and think it's a top toy, and O2's unlimited data (no caps) deal appears to be good value, especially as I found The Cloud wifi coverage to be far more widespread than I thought and is faster than 3G and consumers much less power. I know becaue I also own a 3.5G USB modem for my laptop from Vodafone, although that's a good product too.

So I buy product first, and worry about MNO second. Which means I'd be stuffed if I wanted a Nokia or Motorola phone from Orange -- as they don't carry them any more. So you have to get them unlocked to work on Orange's network.

[rawhead @ Nov 21st 2007 8:45AM]

It's been all but established that Apple didn't intentionally brick unlocked phones with firmware 1.1.1, and indeed they don't intend to, what with 1.1.2 doing no harm to unlocked phones (except relocking them). Of course, you can *never* be sure that a firmware update *won't* brick your unlocked iPhone, since a lot of that depends on how good (or shitty) a job the iPhone unlocking hackers do.

[tanzmachine @ Nov 21st 2007 6:47AM]

Who cares? Let the profiteering filth destroy each other.

[Mile @ Nov 21st 2007 7:16AM]

Did they sell out all the unlocked ones at 999EU? What happened to that update?

[Jons @ Nov 21st 2007 7:26AM]

999€ no contract, vs. 1600€ with contract over 2 years, and thats the cheapest contract you can get.

To be honest, i like apple, im no fan, but i love the iphone. Still i think this is a major ripoff.

[donkey @ Nov 21st 2007 8:46AM]

It's not a "rip off" per se, because this iPhone is not intended for customers.

It's intended as a "f*ck you" to Vodafone and their lawyers. It's just a work around for the injunction.

This is the same practice that will be used in France. Slap a price of 1000 or 1500 Euros on it, and NO ONE will buy the phone without a contract. It's not even clever, it's the most obvious thing they could've done. It's so easy to bypass legislation sometimes - I bet the Apple/T-Mobile lawyers spent two minutes on this one.

[Pizzicato @ Nov 21st 2007 8:08AM]

Yes, it's still expensive. But now Vodafone (or any other Carrier) can sell it legally with their "1600 € for 2 years"-contract and sell the phone itself for let's say 399 € ;-)

[sepirioth @ Nov 21st 2007 1:09PM]

I agree with donkey. this has nothing to do with the customers.

[jeibummie @ Nov 24th 2007 10:00AM]

Do you get free wireless service? Or do you live without a cell phone? If not, aren't you going to pay each month for phone service anyway? Adding up the cost difference between an iPhone service plan and a comparable service plan is fine, but including the cost of monthly service to the cost of iPhone seems unfair.

[neshill @ Nov 21st 2007 7:48AM]

It should be noted, though, that the press release also says that all customers who bought the phone since 19th of november will have the opportunity to unlock it free of charge at T-Mobile. Meaning a bunch of people who went ahead and bought it at 400 euro (and didnt take a contract, but used the anySIM solution or some other) can now enjoy having the first totally unlocked iPhones around. Sweet.

[Renegade @ Nov 21st 2007 9:47AM]

Unfortunately this is not possible in Germany. You leave the T-Mobile store with a signed contract and the contract is for both the phone and the subscription. Meaning that at home you only choose the package you want, but you already have a binding contract with T-Mobile. Canceling the contract is not really an option since then you would also have to return the phone.

So sorry, but your plan would not work here. :)

[daveyg @ Nov 21st 2007 8:02AM]

What's the point in a law that says you can't release a locked phone without a counterpart unlocked version when there's apparently no corresponding law to say 'Oh, and you can't just charge an insane amount for the unlocked version just to put people off'?
I'm sure the French unlocked iPhone will be equally as absurdly overpriced.

[Didou @ Nov 21st 2007 8:13AM]

To think I was actually hoping to buy one when it comes out on November 29th. :-/

[Esat @ Nov 21st 2007 8:14AM]

I would gladly have bought the iphone if:

the camera did not sucked in all aspects
there was a video recording function
it was capable of 3G

As it goes, I have the N95 and couldn't be happier with it. It trounces the iphone in terms of technology. The great thing about the iphone however is its UI and simplicity, and it just looks fantastic.

I have settled for the time being with an N95 and an ipod touch (finally upgraded from my 3rd gen ipod whose battery life was down to 20 mins). The ipod touch is superb, and after jailbreaking it it is 5 times better.

If the iphone had the same technology as the N95 (camera e.t.c.) then I would buy it i n a heart beat. I'm holding out for the 2nd/3rd gen iphones before I buy.

I'm with O2 at the moment so thats no problem at the moment. However I do think it should not be carrier specific as it is annoying for people to change networks.

The elitism of Apple and their iphone should be abolished. At the end of the day it will benefit them as well as us.

Now, back to this presentation on carotenoids.....

[Scott @ Nov 21st 2007 12:27PM]

"As it goes, I have the N95 and couldn't be happier with it. It trounces the iphone in terms of technology. The great thing about the iphone however is its UI and simplicity, and it just looks fantastic."

So in other words you COULD be happier with the N95 if it looked and acted like an iPhone, but with the N95's feature set. I can agree with that.

[Esat @ Nov 21st 2007 3:11PM]

Exactly :)

[Jah @ Nov 21st 2007 8:15AM]

The iPhone is more expensive than any other Smartphone, unlocked. Apple's true nature is now unfolding. They want to create a premium mobile phone business. The iPhone is a fashion item, its not a mobile phone. Only buy it if you understand this.

[Jamar @ Nov 21st 2007 8:18AM]

Eh, whatever- here in China unlocked iPhones cost half that, maybe less. They come jailbroken too. Apple's going to have a heck of a time releasing it here (China), especially if they sell it at that price (worse if they sell it exclusively with China Mobile).

[nikster @ Nov 21st 2007 9:52AM]

I want this locking/exclusivity crap to end, so in order to accelerate it, I call upon the people of the USA to... make a little extra money on the side.

1 - Post an iPhone on ebay, for sale in Europe. Say, $700.
2 - Walk to the nearest Apple store and buy it for $400.
3 - Unlock it with freely available tools.
4 - Send it off to Europe for a tidy profit

With a 2 iPhones / day allowance, you make $600 / day this way.

GO FOR IT!

[dagamer34 @ Nov 21st 2007 1:58PM]

@nikster

It's 2 iPhones per credit card.

[skyone @ Nov 21st 2007 8:26AM]

T-Mobile confirms that customers can bring in those already bought IPhones with service plan (IPhones sold from 11/19/2007) and get them unlocked if they wish... Nice... :-D

[geezer @ Nov 21st 2007 9:30AM]

yes, but they still have that 24month contract on their ass....

[mlb @ Nov 21st 2007 8:28AM]

Anyone that would pay $1500 for an unlocked phone is a moron with too much money.

[Jah @ Nov 21st 2007 8:29AM]

If you have too much money you're unlikely to be a m....

[Constable Odo @ Nov 21st 2007 9:00AM]

Believe me, there are many morons with far too much money. Moon rocks, anyone? I really feel bad for the people in Bangladesh who survived the cyclone with no money, shelter or food and yet people are throwing away money on overly expensive iPhones. That's the way of humanity. Everything is out of proportion.
This iPhone contract stuff is totally insane if every country has different policies. Oh well, it was fun while it lasted.

[Khattab @ Nov 21st 2007 8:30AM]

"Apple" and "Early Adaptor" don't fit together - even out here in Germany :D.

I'M sorry for the guys who bought that thing here between the 9th and 19th of November. They have a SIM-locked Jesus-Phone (to infinity) or loose warranty by unlocking it. All customers who are buying it right now can unlock it officially by just calling the T-Mob Hotline.

Poor Apple. Just stop punishing your customers.


Au revoir...

[Andreas @ Nov 21st 2007 8:54AM]

999€ is no doubt crazy. But once the first unlocked version gets in the hands of the iPhone hacker community, we'll see if the difference between a locked and officially unlocked iPhone is software only. If it is, then hey... it's just a matter of copying the OS and off you go. But if it turns out Apple keep track of the phones, and that they truly ARE phoning home to register themselves, then it could prove much more difficult. I hope Apple will loosen up. Man they're getting stiffer every minute, those bastards.

[John @ Nov 21st 2007 11:27AM]

Having them "phone home" when that could cost you money seems beyond unethical. Not all data plans are "unlimited"

[whot @ Nov 21st 2007 8:58AM]

i sense this scenario happening:

someone wants to earn a quick buck, so he signs on an iphone plan, then gets unlock code and officially unlocks the iphone, then he sells it at maybe (200 euros more, and uses his already useful current phone with the plan he just purchased.

[Jah @ Nov 21st 2007 8:50AM]

Long term, German and French unlocked iPhones will kill O2 contract sales in the UK, and obviously T-Mobile and Orange in Germany and France respectively.

[Jonathan Bergeron @ Nov 21st 2007 9:00AM]

hahaha. That's funny. Way to go T-Mobile on the clever response.

[aptmunich @ Nov 21st 2007 9:44AM]

To all the nutjobs further up:
Vodafone have got to be the worst carrier in Europe... their rates are higher than the competition and they piss all over their customers with handset lockdown: A few years ago you couldn't even play regular MP3's on your phone or transfer your camera pics off it without using their data services as they crippled the bluetooth.

Plus they like to force their branding all over the UI and make any additional shortcut buttons on the handset go straight to their web service.
That's the one carrier I wouldn't even consider switching to.

[T.J. @ Nov 21st 2007 9:14PM]

So Vodafone is the European Verizon?