The new iPhone and the way it will be sold look set to shut down a small industry that arose to form the first version of the iconic phone available around the world.

The original iPhone, which launched in June last year, was initially available only in the U.S. and only for use on AT&T Inc.’s network. In little more than a month, however, enterprising hackers found a way to “unlock” the phone to produce it usable on other networks, including networks in other countries.

IPhones soon flowed out of the U.S., and analysts have estimated that one-third to one-half of the phones sold never made it onto AT&T’s network.

“I saw it in action and I had to have one,” said Ernesto Zeivy, a 50-year-old restaurant owner in Mexico City. He had one friend buy an iPhone for him in San Diego for $500 and another unlock it using software downloaded from the World Wide Web.

Apple

announced a new iPhone Monday for use on 3G, or third-generation, input networks. It will stem the flow of unlocked phones in two ways.

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 rapid clip and reach 70 by the end of the year. That takes away one of main incentives for unlocking.

Second, Apple is abandoning the strange arrangement 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.

“Anyone can unlock it without paying anyone anything,” said Blas Caballero, another iPhone user…

Original post by Top Tech News