Apple gears up to stem hacking of iPhones

When iPhone was first launched in June last year, Apple had debuted the iPhone only in the US and only for use on AT&T Inc.’s network. But little did the company know that the zealous hackers will find a way to unlock the phone and make it usable on other unauthorized networks, which includes networks in other countries as well.

Within a month’s time, iPhones were forayed out of US, and according to analysts, one-third to one-half of the phones sold never made it onto AT&T''s network.

On Monday, Apple launched its newest offering- iPhone 3G, however, this time Apple is well armed, by employing multi-pronged leverage to sharply mitigate the utility of and access to unlocked devices. The company has come up with two ways of making the efforts of unauthorized unlocking fail.

First, the phone will be sold in more countries. Apple added five countries beyond the U.S. for the first phone, but the second one will go on sale in 22 countries on July 11. Apple has said it will add more countries at a fast pace and reach 70 by the end of the year. That takes away one of main incentives for unlocking.

Second, Apple is giving up the unusual set-up under which the iPhone was being sold. Customers could buy them from a carrier or from Apple without activating them on a service plan, and that meant customers could go home and unlock the phones, and never sign up with AT&T.

The carriers intend to make back what they spend on the subsidy through service fees, which means a two-year service contract from everyone who buys the phone becomes a pre-requisite. AT&T said buyers will have to activate service before leaving the store with an iPhone.

Hackers will certainly begin work on looking for ways of challenging the iPhone 3G’s technical locking mechanisms, but Apple’s carefully masterminded tactics may however make their efforts for naught.