Lots of unlocked iPhones

Slashdot It! More than a quarter of people who bought Apple's iPhone are using them on wireless networks other than AT&T's, the exclusive iPhone carrier in the U.S., a "stunning" number that will pressure the company's business model, an analyst said Monday. Bernstein Research analyst Toni Sacconaghi said analysis of sales numbers from Apple and AT&T revealed about 1.45 million phones were "missing in action " at the end of 2007. About 480,000 of those iPhones were believed to be held by AT&T as inventory, leaving another 1 million phones, or 27 percent of the total, that Sacconaghi said were "unlocked" so they could work on non-AT&T networks. Apple executives said last week the number of unlocked phones was "significant" but declined to give an estimate. Most analysts had estimated the portion of unlocked phones at less than 20 percent. Spokespersons for Apple and AT&T declined to comment. The higher number is worrying for Apple because the company receives a cut of AT&T's iPhone service fees, revenue that carries a high gross margin and has fueled optimism over its earnings potential. Via Cnet Get Daily Updates via Email Protect your computer with Windows Onecare Get paid $7.50 for reviewing my post