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25% of iPhones Get Unlocked

Gray market Apple handsets getting reconfigured globally

By Laurel Jorgensen, Newser Staff

Posted Feb 13, 2008 9:38 AM CST

(Newser) – The worldwide demand for the iPhone is creating a growing gray market where the phones are bought and sold outside of Apple’s restrictions, BusinessWeek reports. The devices are supposed to operate only through cell phone carriers who have contracts with Apple. But as many as 1 million iPhones, or one-fourth of the total sold, are unlocked for use on any network.

The iPhone is officially on sale only in the US, Britain, France, and Germany, but it can be found for sale in Canada, Brazil, Peru, Poland, Russia and other countries dotting the globe. Apple and its partners haven’t interfered with the unsanctioned sales so far, but most transactions are happening in countries where an authorized carrier isn’t available.

Attendee Wil Gieseler talks on his Apple iPhone in front of a iPhone poster at the MacWorld Conference in San Francisco, Tuesday, Jan. 15, 2008. (AP Photo/Paul Sakuma) (Associated Press)

The iPhone can be unlocked to run on any cell phone network. (PRNewsFoto/hotels.com) (Associated Press)

An Apple iPhone is seen at a T-Mobile shop in Bremen, northern Germany, Friday Nov. 9, 2007. (AP Photo/Joerg Sarbach) (Associated Press)

Apple CEO Steve Jobs holds up an Apple iPhone at the MacWorld Conference in San Francisco, in this Jan. 9, 2007 file photo. (Associated Press)

Apple CEO Steve Jobs shows off the new iPhone at the MacWorld Conference & Expo in San Francisco, in this Jan. 9, 2007 file photo. (Associated Press)

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OTHER STORIES ON OUR RADAR

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iPhone • Apple • cell phone industry • unlock iPhone • AT&T

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Apple Patent Could Kill Jailbroken iPhones

For your own good, though!

iPhone Kills Carrier Profits

AT&T, Verizon, Sprint lose out by subsidizing Apple's cell phone

iPhone 4S Pre-Orders Sell Out in 12 Hours

AT&T reports 200K orders, calls sales strong

More People Want Androids Than iPhones

Google's operating system barely edges out Apple's

Verizon's Cherry on Top: Unlimited iPhone Data Plans

Execs feel confident network can handle it

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Newser By Users

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