Last week, Apple released the version 1.1.1 firmware update for the iPhone. With relatively little fanfare, iTunes now installs new software onto the iPhone to provide some great new features, including the addition of the iTunes Music Store so you can download music directly to the iPhone via WiFi. There's also dozens of enhancements to the system, including interface changes and bug fixes.

Now the bad news: it breaks the ability to install 3rd party applications and, thus, any SIM card hacks. It's a really bad move on the part of Apple.

Now, if I were in charge of a multi-billion dollar technology empire (and I'm not), I could see why this would seem like a good idea. Removing third party applications removes the chance of the phone becoming the next virus platform or a source of spamming from the cellular networks. Locking down the phone gives Apple control over what's in the phone - and that's what it seems they've always wanted: control over the user experience. It also preserves the revenue stream from their share of the monthly AT&T revenues from mobile phone service contracts, not to mention the thousands of contracts that will be started when the phone is released in November in the UK and mainland Europe. So it seems like a sensible business decision.

They're wrong.

Their logic is like saying that a MacBook Pro is better with only Apple software. While it's absolutely true that iTunes, iPhoto, and the other iApps - even Final Cut and Motion - are the best applications in their class, that doesn't mean that Apple should cut off the abillity to use third party software on their computers just because they might get hacked into or get a virus. A laptop is a lot more useful mainly because I can install other applications, as I mentioned in my first post about the iPhone. Honestly, it doesn't take away from my user experience that I can change my background, add applications, and use it for other mobile networks. It adds infinitely to it.

[Anyway, if Apple has learned to make a Mac more secure against viruses, I'm sure they can do that for their iPhone.]

Now, I bought my iPhone because these limitations were broken by a group of dedicated hackers - and retracted my opinions about the phone. Now, I'm going to retract my retraction. If you buy a new iPhone with firmware, then go back to reading my first post - because honestly, it's more relevant now than ever.

And if you're thinking, "well, this is a mobile phone, so the computer world just doesn't apply," I don't agree. Nokia makes open phones - in fact they just started advertising it. I'm disappointed in Apple (as if I have the right to be). They should have been the first ones to this game with the iPhone - that would be "Think[ing] Different." History is repeating itself and Apple is on the wrong side, again.

If they want market share, then they need to play the Microsoft if the 1980s and early 90s. Windows and Office were viciously pirated in the early days before the days of software "activation" - and you know what, I think that was not just a technology choice but a business choice. Gates is no idiot - he knew that the fastest way to "every desktop" was a matter of getting it out there at any price. It did pretty well for them over the long haul.

Apple should do the same - they should throw away short term revenues to get market dominance. And while they're at it, make the damn thing more secure than MS ever made Windows and Office.

I think Apple would sell a whole helluva lot more phones if they were SIM unlockable. I'm not sure that it would make them as much money as their recurring revenue streams, but it would ensure their dominance of the mobile phone market with their device. Remember, Apple isn't a majority player in this market like they are with the iPod - they need to have a different strategy than locking it down at this point in the technology game.

Meanwhile, I'll use my 1.0.2 iPhone to make calls with my Orange UK SIM and SSH into my servers. Even if version 1.1.1 never gets hacked - I'd prefer to have the Old Busted rather than the New Hotness any day.