iPhone Upgrade Negatively Viewed by Media

Mon, 10/01/2007 - 06:35 — Cleve Nettles

I don't think I can remember an Apple move that provoked such strong, yet universal negative feedback from the press as the iPhone Firmware update 1.1.1 is receiving. While there are always Apple rabid fanboys that would cheer on Steve Jobs as he robbed a bank, the more objective press and readers around the world have all voiced their negative opinion of the iPhone lockdown move included with the 1.1.1 update. Some sources have indicated that Apple's update might even be CRIMINAL in its purposely "bricking" of anySIM opened handsets. While Apple has mostly covered itself in its licensing agreements and with public notices about the effects of iPhone 1.1.1, this move - likely forced by its agreements with AT&T, is a public relations nightmare and could do more to hurt the Apple brand than anything since Steve Jobs retook the helm, 10 years ago.

Gizmodo: iPhone Revisited (Verdict: Don't Buy)
Engadget: iPhone users calling for class action lawsuit over firmware v1.1.1
NY Times: Altered iPhones Freeze Up
Wall St. Journal:Apple Update Spurs Problems For iPhones When Modified
Macworld : Requiem for a third-party iPhone app
Macrumors: iPhone 1.1.1 Aftermath
ZDNet: Best to avoid iPhone update 1.1.1 if you can, iPhone firmware 1.1.1 released; breaks everything
LA Times: Apple's latest software update shuts down some hacked iPhones

These are the press companies that are usually nudged to give Apple good reviews lest they not get advanced looks at the latest equipment, invited to Apple press events and be the benefactor of Apple's advertising spend. Extremely strong words. Who got to do the early reviews of the iPhone? Why?

The grand total of the 1.1.1 update is this: you get mobile iTunes STORE (you already have 99% of the iTunes desktop functionality in the iPhone iPod.app). You get some user interface tweaks which aren't going to change your iPhone experience much. The negative - you lose access to all of the developer apps and sim unlock. While this is only going to effect the small minority (under 10%?) of iPhone users that unlocked their phones and put applications on it.

What is different about this is Apple's malicious intent on their customers. Apple's update doesn't just invalidate the SIM card which, in itself, would have been enough to infuriate most users - it Bricks their phones. Let me say this again so it sinks in:

APPLE PURPOSELY DESTROYS ITS OWN PRODUCT TO KEEP IT FROM BEING USED IN WAYS IN WHICH IT DOES NOT SEE FIT

Is it legal to install other applications or to unlock your iPhone? Yes.

Is it legal to use another SIM card from another carrier in it? Yes.

Did Apple know that its "updates" would destroy iPhones that were being used on other networks? Yes, it most certainly did. Various independent reports conclude that Apple is knowingly and purposely bricking its own phones. Whether this is able to be proved in a court of law is questionable.

A lot of people are going to say that "you bought it and the license agreement said not to mess with it and you did so now you deserve to lose your money" or the ever popular "IF you put a Chevy engine in your Ford truck don't blame Chevy if it don't work right idjit". Yes of course we knew we were voiding our warranties when we hacked the iPhone. Like most people savvy enough to hack into their iPhone, we were also savvy enough not to take Apple's Bricking software. This doesn't make it right.

Why is Apple doing this? It is most certainly to enforce its agreement with AT&T and to assure it's European telecoms partners that it can lock its customers to the networks that pay a royalty fee (10%-30% of the talk, data and sms bill depending who you ask). I say royalty fee because Apple, for this fee is not providing any type of service to the customer in exchange for their monthly charges. One could argue (and no doubt, Apple's lawyers will at some point be made to) that the Visual Voicemail feature on the iPhone that Apple worked on with AT&T could constitute a feature and rationale for the extra fees. However, I don't think Apple's PR is set to announce this any time soon.

And that is just it - this isn't really about legalities. It is about public perception. It is about the Apple brand and the brand loyalty of its customers. Apple's brand is without a doubt, its most valuable asset. Apple certainly has a bright short term future with its lead position in the digital entertainment revolution, however its high stock price is by and large a function of its brand.

People see Apple as an alternative to Microsoft. An alternative to the status quo. "Think Different". The company that cares for its customers. The "cool company"

Consumers in this category like to think they are in charge. They want freedom or at least the illusion of it. It isn't Apple cool to have to follow the whims of a big corporation that is in fact acting as a proxy for AT&T. (and in other matters for the record labels)

Nokia, for one, is taking full advantage of the lock down perception that Apple is throwing off. Their new N-Series Open campaign was launched today and seems to be grabbing a lot of positive attention. The reality is that their devices don't really hold a candle to the iPhone on most fronts. They also sleep with the carriers as much as Apple is currently doing.

These latest actions that Apple are promoting are hurting brand in a way that will not be calculable in certain terms. However, to see the technology press so unequivocally and wholeheartedly bash the media darling surely must be cause for fear in Cupertino. This will take more than a $100 gift card to remedy.

Edit: This was posted before editing...more sources of negative publicity added as well as some vulgarities removed. Please return to flaming away!

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Comments

I knowingly updated to 1.1.1

I knowingly updated to 1.1.1 and did so because i knew at some point and time that it would be reversable. (and it already is!) i am going to wait a couple of months and see how everything pans out. you never know apple might decide to start letting 3rd party developers make apps. kind of what they did with dashboard and let everyone go crazy. it is still VERY early in the game to start taking sides. im going to see which team is the better of two evils. remember... one begets the other. corporations lead to hacks... hackers build corporations..... (apple, napster, etc.)

*Yawn* storm in a tea cup by

*Yawn* storm in a tea cup by a load of media whores all upset that their own unlocked iPhones can't be upgraded to 1.1.1

Don't want your phone re-locked? Just don't upgrade to 1.1. There. Simple, isn't it?

The broader public doesn't give a flying f**k .. they just want an iPhone.

Christ what a bunch of whiners.

"Apple certainly has a

"Apple certainly has a bright short term future with its lead position in the digital entertainment revolution, however its high P/E ratio is by and large a function of its brand."

Furthermore, I suggest you refrain from writing about things you obviously don't understand. Apple's "high" P/E ratio is a function of its incredible earnings growth, not its brand. If you're going to make comments about financial matters then I advise you to read "writing about stocks 101" before you trip over your shoelaces :)

You, Sir, are an ass!

You, Sir, are an ass!

i do believe that SJ is now

i do believe that SJ is now a clinical megalomanic and control freak. with the iphone he flipped his wig. just sell the product to every cell phone company? nooooo. he wants a cut of everthing, and now he is really PO'd that the hackers burst his little bubble. back when apple charged 2.99 (or whatever) for enabling wireless N, i though 'this is not a good sign'...the apple tv? lock that baby down! besides the utube upgrade, where are the hot new features??? music? itunes only. i think apple has now crossed the line where you need a certain amount of control to provide a positiv customer experience with a dictator-like 'its my way or the highway'....

"We here a 9to5mac speak on

"We here a 9to5mac speak on behalf of everyone".

It's not "universally" despised by the media. You only quote a few. You are obviously very angry, and it comes out in your writing every day. But that does not make it a universal feeling. And when you say "(under 20%?)" you might be talking about under 5%.

Furthermore, what does talk about "licensing" have to do with bricking phones? You are just on a rampage.

By the way, it's "calculable", not "calculatable".

I don't see any "real" media

I don't see any "real" media companies on the list there, other than MacWorld, if this news makes their published magazines, and ZDnet. As Popular as the blogs making all the noise are with the geek community, they are not media that are relevant to MOST people that Apple targets as consumers. We tech geeks who read all the tech and Apple blogs get a very distorted view of reality and forget that only a relatively small number of the consumers that Apple targets actually read this stuff we are inundated with.

Now, when ABC, CBS, NBC, CNBC, NPR, BBC, the New York Times, Wall Street Journal and whatever non-US general media outlets matter in their particular countries start making noise about this, that will be media attention that matters and could hurt Apple. Until then, it's just, as another commenter puts it, a tempest in a teapot.

Real Media and Technology

Real Media and Technology Media are two separate things. If you use USA Today as a guide for making technology decisions, you are not in the intended audience here.

I *am* the intended audience

I *am* the intended audience for your blog, and the blogs you mentioned.

My point was, that until the "real media", ie., USA Today or New York Times makes a big negative stink about this stuff, it is far from a "public relations nightmare" as you stated in the original piece.

Those of us who use this site, and Gizmodo, or whatever, to make technology decisions are a very small segment of the intended audience for Apple products. ZDnet/Cnet might get some more mainstream eyes, but the general public never heard of gizmodo, or 9to5mac.

The iPhone isn't aimed at the 3-6% of computer users that use Macs. It's aimed at the billions of people who use cellphones - that's an entirely different audience, the VAST MAJORIT?Y of whom read USA Today, or New York Times or whatever. I know a lot of people with iPhones. I am the only one who has hacked his phone (for third party apps) and I am the only one who reads these blogs and knows of all this upset by a vocal view. Most people who bought the iPhone are loving it, not hacking it, and don't care about those who did.

The stock price on Apple sure doesn't seem to mind the issue, the stock was up 2% today - not something that a company suffering a PR nightmare would do.

I see you've updated the list of mainstream press to include LA Times and others that aren't just tech geek blogs, so it may become some bad press, but until the bulk of iPhone audience and target market is impacted, no one will care enough to scare Apple into doing anything that would cause them to lose money (ie, the revenue from income sharing deals with cell carriers). Bottom line, Apple's a corporation that has to generate and protect profits to please share holders, or the management gets kicked out, including Steve Jobs...

This is a joke, right? Dude,

This is a joke, right? Dude, this article is so full of FUD it isn't funny.

Prove to me that Apple bricked these phones on purpose. Did you ever think that these "unlocking" apps screwed with something that Apple already changed while working on the update? Did they not warn people that this could be the case? Does Apple really need to make sure that their software updates work with hacks and unsupported software? Gimme a break. 99.9% of people who own an iPhone could care less about unlocking it or running some lame app like a NES emulator. Stop your crying and be realistic.

I recently added this blog to my NNW, but now I think it is time to unsubscribe. Bye.

hasta fanboi

hasta fanboi

well, I guess right now we

well, I guess right now we can only speculate. Most likely you're right and it's some kind of incompatibility between the firmware upgrade and hacked firmware. But the topic is interesting, not because a lot of users would be affected. If Apple introduced on purpose code resulting in a crippled iPhone (while the alternative may have been not to allow firmware upgrade) - you can also call it an act of self justice. I think that it is just a matter of time and we will know.

I don't see the problem.

I don't see the problem. Apple assumes you legally entered into a contract and they put an update out to help the legal public iphone users. They are not reponsible for the groups of hackers out there that are not happy with being bound to AT&T. Those hackers shouldn't cry when there poor little phones are labeled a brick. When someone buys a new car and changes everything in the engine... The car company aren't going to cover the new add ons... What's the problem here? NOT APPLE.

Both sides of this argument

Both sides of this argument seem a little angry here. Sheesh!

I think the competition from Nokia (and in another way, the competition from the recently-opened DRM-free Amazon music store) will be great for the consumer. It's no surprise that Apple will move to protect its interests if they have innovated beyond the rest of the field. Competition should even things out and force Apple (if SJ isn't the raging Charles Foster Kane type he's been portrayed to be here) to be more open.

To the uninformed...tell me

To the uninformed...tell me a phone that is provider locked in the EU? N95? LG Prada? ANY MS Phone? There not a single one. If we want the phone we simply pay a higher premium, which is expected.

Phone online with contract might cost free to say £200 depending on contract, etc...or I could go to sites like expansys and just buy phones off line for a premium. I dont mind paying £400+ for a phone I know is offline. Why apple did not or are not taking this route I dont know. One thing is for sure, there is a reason why nokia sell 1 million phones a day and not 10 million in a year (listen El Jobso)...Apple could of made a total killing by simply selling the phone totally offline for say £600ish and simply give AT&T (NSA...eeek) a slice of that fee to appease them. This way u make profit and the PDA/smartphone market becomes the iPhone market...mobile market becomes iTunes market...think.

Anyways...1.0.2 and lovin it...Apple we like ur phones we just wont die for them...here is a question for T-mobile US, how users dropped off when the update came out? Heck I personally think there are more people using it on Tmobile than NSA/ATT.

Typed on a MacBookPro 2Gb RAM / 2.4Ghz Intel...8 days old...

I, for one, can't wait to

I, for one, can't wait to purchase my two iPhones - both running 1.1.1. One for me, one for my wife. The improved security is just what I was hoping for. Too bad Microsoft doesn't take security as seriously, Windows Mobile 5 & 6 suck when compared to the iPhone.

As for all the whining hackers out there (site author included), I'm pretty darn sure that at some point growing up your mothers did teach you that when you don't play by the rules, you end up paying for it. You just learned that lesson the hard way.

Listen to your mother next time. Or go buy a Zune... I hear they're real cheap nowadays. Maybe you can hack it into a phone for Uncle Bill?

Your wife actually called

Your wife actually called and said she wants this on her iPhone
http://gizmodo.com/gadgets/apple/ibrate-app-turns-iphone-into-vibrator-2...

Too bad my iPhone can give it to her and yours can't

LOL

OK seriously--as an admin of

OK seriously--as an admin of this site you are posting crap responses like this? So I guess if we don't agree with you, we're just wrong.

You lose more credibility with each grade school taunt you post in these comments.

Agreed. I used to frequent

Agreed. I used to frequent this site quite often because of their reputation for always getting the latest and most accurate rumors. I agree that the past few days of 1.1.1 iPhone whining posts are starting to sound more and more like they were written by a pissed off l33t suxxxor haxxor still living in mommies basement.

I love my iPhone, I love the latest firmware update, and I love that there is a lot more to come for me. Don't unlock the stupid phone if you don't want problems.

I also just noticed that the admin is responding to other comments below this one in a very sarcastic and rude manner. Poor form...you know what admin...why don't you just go buy a windows box and GTFO.

Why should Apple have to

Why should Apple have to take into account every existing and potential third-party modification to the iPhone when designing its upgrades to the phone?

There is no evidence at all that Apple deliberately bricked modified iPhones or removed third-party applications; no evidence at all.

It sucks not get get exactly

It sucks not get get exactly what you want, huh? waaaah.

Solution: don't f**king but an iphone. Don't buy any more apple products. Move on. Get on with life.

I will be unsubscribing to

I will be unsubscribing to this RSS feed. Wow. I get that you dished out $500 bucks to break an iPhone, but to hear you cry? Geez.

If I buy a new Honda and re-program the in-dash computer system, do you think they are gonna pay for any damage it causes? Do you think they'll just re-flash the memory for free?

I'd rather have you go buy a Windows Mobile phone and take your whining elsewhere. Your logic here is baffling. My 5 year old kid sounds more logical.

All this so called righteous chant by people like you who think it's their God-given right to hack anything and do whatever the heck they want is disgusting.

And I'll bet the number of hacked iPhones out there is <1%.... probably <0.01%.

Count me unsubscibed.

Dear fanboi, take yourself

Dear fanboi, take yourself to an unbiased news source like http://www.apple.com/hotnews

this site is for people who look at both sides of an issue.

Both sides? Have you seen

Both sides? Have you seen your posts? And the actual "Facts" you show in bold fonts?

Yeah, definitely very unbiased and quite looking at both sides .

P/ (That was sarcasm)

So, if the world at large is

So, if the world at large is so against the 1.1.1 update, how come AAPL stock is trading up $2.25 as I type this?

I think it is a disappointment for the folks that wanted the iPhone to be their modding playground, but that doesn't make it a disappointment for everyone else.

In fact, probably THE most common complaint about the iPhone was indeed the call volume, and this fixes that. I'd venture to say it is a good thing for a lot more people than it's a bad thing.

Re: "APPLE PURPOSELY

Re: "APPLE PURPOSELY DESTROYS ITS OWN PRODUCT TO KEEP IT FROM BEING USED IN WAYS IN WHICH IT DOES NOT SEE FIT"

Or most likely not. For an actually well thought out, reasoned opinion that suggests otherwise, everybody reading this site should go read Engadget's open letter to both iPhone users and Apple: http://www.engadget.com/2007/10/01/a-note-to-both-apple-and-iphone-custo...
It makes a lot more sense than the breathless screaming and foaming at the mouth going on at 9to5 Mac.
And really, the picture of the sheep, suggesting anyone installing the 1.1.1 update was stupid and sheeplike, was unbelievably insulting. I hope it wasn't aimed at the 99 percent of iPhone owners who couldn't give a rip about installing third-party applications on this phone.
Cheers.

Was the iPhone shipped

Was the iPhone shipped unlocked? I think not. Did very smart people hack it in a few months? I think so. Will they be able to hack this one? I think so. Was everyone who unlocked/hacked/whatevered their phone warned? Absolutely. The answer, if you hacked and didn't upgrade yet? Wait, they will hack it again. If you already tried it, go to the Apple store, feign ignorance, get it fixed and then wait. Honestly, people act like the same smart guys that worked it the first time have all died, and won't be able to do it again, and again, and again...

I think this is simply Apple

I think this is simply Apple having to make good on promises it made to ATT. It got a hell of a deal with ATT, and probably had to promise it would really stop people from hacking to get off the network. It's a deal signed with the Devil, maybe, but understandable.
Why else would they do this? There's nothing in it for Apple.

steve

Love the phone, love the

Love the phone, love the update, and looking forward to more of them ... and down the road in a year or so, hoping that 'vouchsafed' 3rd party apps will appear for sale in the iTunes store ... and that other version iPhones start to appear for use with other carriers ... nice if they were just unlocked ... (hoping that the 5 year agreement with ATT applies only to THIS phone, not other future form factors ...)

But for right out of the gate, this deal with the devil was a given, and Apple is bound by legal agreements with ATT. (Sure there is mututal back scratching ... they both stand to benefit.) Their other option was to do their own network with one of those piggyback lease deals, but you'd be trapped on that one too and they'd have taken on more risk and would have been more beholden to whatever carrier to implement the mainframe changes that they need to have ...

Apple has made it's position crytal clear, there is nothing out there that would constrain them to test the effect of an update on a hack.

By all means hack the iPhone and have fun doing it ... but why anyone would do that and then assume that they can install an official Apple update on top of it and still have everything go smooth as silk has some sort of meglamaniac complex of some sort.

I don't have a iphone. I

I don't have a iphone. I hope they wont brick my macpro when I go and buy one in december. that would be a load of bricks.

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