So as the first iPhone owners update their phones to firmware 1.1.1, we're getting reports in that not only do third-party applications no longer work, but a post-update reactivation requires a genuine AT&T SIM. In other words, it looks like Apple may have just disabled thousands of unlocked phones around the world. Stay tuned for more as we test this ourselves...

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iPhone update re-locking handsets, disabling 3rd-party apps?