It is getting out of the contract that costs a pretty penny...

Nov 22, 2007 18:32 GMT  ·  By

The news about the iPhone developments in Germany are big, bigger than the French ones were back in their day, but amidst all the reactions, confusion is slowly starting to creep in.

Many sources are reporting that T-Mobile is now selling 'unlocked iPhones' for 999 euro. In so far as the term 'unlocked iPhone' has been used so far to describe a device that was hacked in order to work with any carrier, this statement is misleading. Deutsche Telekom's T-Mobile unit is selling iPhones for 999 euro, but these devices are priced so because they have no contractual agreement associated with them. Unlocked iPhones, that can be used on any carrier the user might wish do not actually cost anything extra and units that have already been sold will be unlocked free of any charge.

As such, from this point on, any German iPhone will be usable with any carrier and users will simply be able to swap out their SIM card for another should they wish it. This is extremely important to people who travel a lot as now they no longer have to pay international rates, when they can just switch to a card from a local service provider. Although the iPhones can now be used exclusively with other carriers, unless you pay to get out of the contract it doesn't make any financial sense, especially when you consider that the iPhone unlimited data rates are very competitive.

While the move is a win for the consumers, it is also a win for Apple. Now they can sell to even more people and the money they would have received over a period of two years is all up front. The company won't actually lose in any way, nor will the carrier, it is a win all around. This also answers questions about the French launch, as it is unlikely that Apple will price the devices differently. Last but not least, this is also good news for Canadians, or anybody around the world that wants an iPhone but isn't willing to wait until it makes it to their country.