The fruit company made some scary statements targeted towards the iPhone hackers and unlockers. According to Apple the iPhone could even become permanently inoperable once Apple updates are installed. On the other hand, they are saying that they are not proactivly doing anything to disable unlocked phones.

At this point it would seem that Apple is bluffing. The unlocking, as far as can be learned by reading the web, is a software only process. Most likely the unlocking can be reversed. If "Apple updates" means that a new firmware is flashed to the device, the unlocking changes in the software may actually be overwritten. And certainly Apple will not start deliberately killing iPhones with updates, as that would bring them a load of negative attention and might not even hold if tested in court -- deliberately causing damage to customers, even misbehaving ones, is serious business.

The warning will be seen as a pre-emptive strike by Apple in the ongoing battle with hackers who are increasingly making unlocking software available to iPhone users.

Unlocking the phone allows iPhone owners to use the phone with the network operator of their choice rather than the authorised ones chosen by Apple.

"Apple is saying that if you buy the iPhone and unlock it, you could preclude yourself from getting new features. Apple updates might not install properly and you could find that you own a £270 brick," said Ben Wood, director of research firm CCS Insight.

At the launch of the iPhone in the UK, Apple boss Steve Jobs admitted that the firm was engaged in a "game of cat and mouse" with the hackers. He added jokingly: "We're not sure if we are the cat or the mouse."

Source: BBC