If you can't get your goods into China via the front door, there's always the back. Apple is now selling its iPhone 3G unlocked via its on-line Apple Store in Hong Kong. The 8GB model sells for HK$5,500 (about US$694) or HK$6,200 (about $797) for the 16 gigger. Already available since July 11th with a local Hutchison Telecommunications contract, this is the first time that Apple has sold its device unlocked in Hong Kong:

"iPhone 3G purchased at the Apple Online Store can be activated with any wireless carrier. Simply insert the SIM from your current phone into iPhone 3G and connect to iTunes 8 to complete activation."

Unfortunately for the 1 billion mainland Chinese, the terms and conditions limit sales to those in Hong Kong only -- not that the gray market cares about T&Cs. It'll be interesting to see if Apple extends the unlocking more broadly (presumably as exclusivity deals expire) or if this is strictly a local phenomena, perhaps in direct response to having its WiFi and the imperialistic 3G gutted from handsets sold under Apple's rumored China Mobile deal.

[Via PC World, thanks Twins N]

With firmware 2.1 now out for the iPhone and iPod touch we bring you the inevitable PwnageTool and QuickPwn response. Apparently, the DevTeam took offense to a previous posting where we questioned the relevancy of continued jailbreaks in the age of the AppStore and official, worldwide iPhone distribution.

So, we'll put it to you dear reader: as much as we respect these guys for their gen-1 iPhone unlocking and pre-AppStore era work, is PwnageTool and the ability to jailbreak your phone still as important as it was?

Update: By a three-to-one margin it's clear that you still love your Pwnage! As such, we'll continue to cover the DevTeam's exploits just as obsessively as before.

While the DevTeam rightly asserts that Apple can't undo the bug exploited by PwnageTool via firmware update alone, it's still subject to the whims of iTunes connectivity. In fact, iTunes 8 seems to detect jailbroken devices jailbreaking attempts and then stomps its feet and refuses to play nice. While the DevTeam says that fixes are in the works, the growing list of useful applications in the AppStore coupled with the global retail availability of the iPhone (and lack of a 3G unlock) makes PwnageTool less and less relevant with each passing day.

Update: The problem seems to occur when you try to restore to an iPwned ipsw from a non-iPwned device. Syncing to an already Pwned device works fine.

Editor's note: The sentence above which states that the Dev Team's efforts are becoming "less relevant" is not an opinion which is endorsed by Engadget. Quite the contrary -- many of the editors here are die-hard fans of PwnageTool and the Team's work, and believe that their contributions to the iPhone community are hugely important. Thomas -- who lives in The Netherlands -- has a point in regards to users who previously had no access to the phone and were forced to import and unlock, or more casual users who likely find the App Store more approachable. Personally? I don't update my phone until the Dev Team has worked their magic, and they have Engadget's full support and respect. -- ed.

Uh-oh, it look like it's not just the underground unlockers who're having problems with the iPhone 2.0.1 update's revisions to the 3G's baseband -- Vodafone customers who've paid to have their handsets unlocked are starting to report failures to connect to iTunes followed by the appearance of an "0xE8000001" error code. There are also reports from a handful of other carriers, but Voda's selling Steve's baby in 10 countries, so most of the complaints are from its customers. Other than that, there are some isolated reports of brickage, but we've mostly heard good things about 2.0.1, and our iPhones are definitely feeling a little better -- how about you?

[Via TUAW]

We've already seen the iPhone 3G got unlocked to function on any carrier (and you can already buy unlocked versions in several countries), but we haven't seen a locked handset get unlocked via software only, and the folks at gsmphone-unlocking have the first video we've seen of Steve's newest baby doing the SIM swap dance without any adapters. Yep, there it is, going from Rogers to Fido. Sadly, the video is more of a shameless ploy for publicity than actually useful information, and until we're told otherwise, we're just going to assume that they've just gotten hold of an early copy of the Dev Team's unlocking tool -- which should be free to the public sometime soon. So, you know: video after the break, but feel free to ignore the obnoxious phone numbers and URLs.

Feeling a little left out after yesterday's Mac-based Pwnage Tool festivities, Windows users? Fret not, because the ever-vigilant, ever-studious hacking community has managed to come up with a series of steps to get you back on your feet again with a fully pwned first-gen handset. The whole shebang isn't necessarily for the most casual jailbreakers -- let's just say it isn't quite as straightforward as the Mac procedure yet -- but it'll allegedly get you going if you're starting with an iPhone running 1.1.4 (there are additional steps if you jumped the gun on 2.0, you impatient son of a gun, you -- think of it as penance). As always, exercise extreme caution, understand that this could cause your iPhone to spontaneously combust into a useless pile of metal, plastic, and ash, and let us know how it goes in comments.

[Thanks, Z-]

iPhone unlocking is a little more cash-intensive now that Apple and AT&T are all contract-happy with the 3G, but it looks like would-be unlockers will have a little more time to save up those pennies -- the erstwhile hackers on the iPhone Dev Team say that while a forthcoming version of the sadly-named Pwnage tool will activate and jailbreak the iPhone 3G, unlocking is taking a little longer than expected, and they don't want to release the code until it's exactly right. The tool still unlocks first-gen iPhones running 2.0 and allows jailbreak apps to co-exist with the App Store, so if you're desperate to unlock right away, we'd say a first-gen unit is your best bet.

We just happened to be in Sao Paulo, Brazil, this week and when the news popped up that a group of Brazilians had unlocked the iPhone 3G, we just had to pop in to say hi. Like the Turbo SIM unlock for the original iPhone, this system uses a wafer-thin card that piggybacks on your SIM while in the phone. Of course, Turbo SIM needed some tools installed on the iPhone -- so Jailbreak was key -- this solution does not, just DesbloqueioBr's chip and your SIM. Paulo and Breno of DesbloqueioBr explained that the magic lies in the programming of the SIM adapter itself, by tricking the iPhone into believing a test SIM has been inserted, the iPhone allows service and then functionality is handed back to your SIM. We tested the unlock in our own FIDO locked handset with a local TIM SIM card, then in their AT&T set, and it worked perfectly in both. How much will this cost average Joe iPhone user? They were pretty tight lipped as to what the final pricing will be and how exactly they'll deliver the service, but we should hear more in the next few days. Check the vid of it all in action after the break.

MetroPCS may not have the largest wireless footprint in the States, but they did take a jab at the larger two CDMA carriers by announcing their intention to take on any Verizon and Sprint customers ready to jump ship -- as well as any "compatible" devices they may want to bring along with them. Sprint already supposedly does this (although we've still yet to hear of it actually really happening), but the specifics of MetroPCS's MetroFlash seem equally unclear. It doesn't sound like they'll reprogram just any CDMA device that walks through their doors, though, just the ones they've had a chance to test on their network. Definitely kills the buzz (and the number of devices that can be ported), but a little open is still kind of better than totally closed, right?

[Via Seattle P-I and Mobility Site]

Steve Wozniak is much more than a throbbing brain with a tie. He knows that the quickest way to a girl's heart is to jailbreak her iPhone... on TV. As he tells Ms. Griffin, "You know, some people would criticize you for not having hacked your iPhone." Certainly not you, Mr. Apple Co-founder? Watch it all go down after the break.

P.S. Looks like Woz's watch is a Nixie -- the man's nerd to the core.

[Thanks, Karim S. and Jon]

Just a few hours after we brought you the exclusive hands-on video with the DevTeam's PwnageTool... it's out! Mac only for now, Windows on the way shortly.

[Thanks to everyone who sent this in]

Although the iPhone Dev Team totally punked us on April Fool's Day, they were still nice enough to give us an early hands-on (in person!) with a pre-release version of their new Pwnage tool. Pwnage lets you load in any firmware you want, including patched firmwares not signed by Apple -- which could lead to everything from custom software distributions to totally new OSs ported over (like, say, Android or Linux). We did what most people are probably going to do, however: we took a brand new 8GB iPhone, unlocked it, and upgraded to the 2.0 firmware, while keeping it active on T-Mobile. It's not exactly a one-click process, but it's not all that hard either -- although we kind of cheated and had Dev Team members talking us through it. Peep the vid after the break, and check the read links in few hours to get your hands on Windows and Mac versions of the tool.

P.S. -Apologies for the blurry video for the first couple minutes, we didn't notice that our camera had gotten knocked out of macro mode. You're not missing much, trust us. Oh, and the only cuts are during loading bars and when we accidentally flashed a phone number and the iPhone's serial number -- we figured you didn't really want 20 minutes of listening to people sniffle during progress bars.

Read - iphone-dev.org (Pwnage tool creators)
Read - The iPhone Project (hosting the Pwnage tool)

Those crafty kids on the iPhone Dev Team have already hacked the 2.0 firmware, but now they're getting ready to release the oh-so-creatively-named PWNED tool, which takes iPhone hacking to the next level by patching the bootloader to let you load any firmware image you want -- even images not signed by Apple. That means custom patched firmware can now be loaded directly from iTunes, which simplifies the jailbreaking / unlocking process tremendously, and also means that a patched version of the 2.0 firmware is coming soon. We're putting the tool through its paces right now and we'll have a hands-on with it (and the Dev Team's patched 2.0 firmware) as soon as we get it all working, but check out some highlights after the break, and hit the read link for more info.

Update: Looks like PWNED / Pwned Tool / Pwnage Tool / Pwnage / whatever they're calling it is being delayed for a week. Bummer. Thanks, Neophytos.

Just four days after Apple announced that the beta version of the iPhone SDK would be available to developers, some 100,000 downloads have taken place. 'Course, it's not like we're shocked by Cupertino's latest horn tooting, but we've all ideas that number pales in comparison to the amount of requests for unlocks. Nevertheless, the real news from the Apple camp is that companies such as Namco and PopCap are apparently on board to bring titles such as Pac-man, Galaga, Bejeweled, Zuma and Peggle to the iPod touch / iPhone via App Store. Furthermore, Six Apart's CEO admitted that it's already developing a "native iPhone application for TypePad," and the VP of THQ Wireless implied that we'd be seeing some of its wares surface here as well. As for release dates? Your guess is as good as ours.

We know, we're flat on our backs from being blown away here, but Apple confirmed to us in a post-keynote Q&A session that SIM unlock software will not be allowed in the iPhone App Store. You know what that means? The Jailbreak community lives to crack another day.