Will Apple sell an unlocked iPhone in France? Pricing matters…

An article in the International Herald Tribune suggests this is a done deal. But another article by Gizmodo says Apple has not confirmed this yet. My gut feel is that Apple has no choice in the matter. But what will be critical is the price differential between the locked version, and the unlocked version…

(Via IHT.com & gizmodo.com)

Here’s part of the original text from the Tribune - Apple chooses Orange as iPhone operator in France:

BERLIN: Apple said Tuesday that it had signed France Télécom’s wireless unit, Orange, to be the U.S. company’s exclusive seller of the iPhone in France, agreeing for the first time to sell a version of the device that consumers can use on any network.

The move, which ended a month of speculation, is a concession to a French law that forbids bundling the sale of a mobile phone and a mobile operator. Orange plans to sell both a version of the iPhone locked to its network in France for €399, or $560, and an unlocked version, which will cost more, an Orange spokeswoman, Béatrice Mandrine, said.

And the corresponding Rumor Smashed: French iPhone’s Unlock Status Still Unknown Gizmodo Artcile:

Although many sites are reporting that the iPhone is coming unlocked in France, quoting an INH article, Apple told us that the piece was based solely off of reading French Law, not from statements by Orange or Apple. The particulars of pricing plans and whether the iPhone will or won’t be unlocked is still up in the air, so don’t start pulling out your credit cards for a French iPhone just yet. However, because there is such a law that “forbids bundling the sale of a mobile phone and a mobile operator”, there still may be hope for an unlocked iPhone.

When I saw the first announcement, I must say I was impressed and pleasantly surprised that Apple had come around. So, the fact that things might still be ‘up in the air’ seems somewhat more plausible. Nevertheless, eventually they WILL have to comply with the law in France. Other articles are also suggesting that the French unlocked phone will happen.

So what really matters when they do release an unlocked version in France (no doubt all the menus will be in French!), is how much more will it cost? The fact that it will cost more is perfectly reasonable as the locked version is essentially subsidised by a contracted monthly plan. But, the unlocked version needs to be priced at a point that discourages the hacking masses from continuing to put effort into ‘unlocking’ the cheaper locked version.

For example, personally I would be prepared to pay maybe… US$200 more for a supported, unlocked iPhone. But if it was $400 more, the cheaper hack-option still seems attractive. Conversely, if its under-priced, hordes of opportunists will be off to France to buy unlocked iPhones in bulk!

Realistically speaking, it would be probably better for Apple to offer an unlocked phone globally at the same time as the French one is made available - or at least announce plans to make it available shortly after. Otherwise the sheer numbers of American users still wanting Network freedom will be enough to drive the hackers to continue. Why should Apple fight a battle it can’t win?

Let’s see how this one plays out…

My previous article on the subject is here.

Originally from TechGripe! by Brett Ryland (17 October 2007).