iPhone users will need iTunes account
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(InfoWorld) - Consumers planning to buyÂ the iPhone when it goes on sale in the U.S. later this month will need to have an iTunes Store account before they can activate the device, according to information on Apple Inc.'s Web site. Apple will require customers to establish a separate account with its online media service in addition to one with AT&T Wireless Services Inc., which has signed an exclusive U.S. distribution deal for the iPhone. The move will allow Apple to create its own billing relationship with iPhone customers, rather than collecting payments for any iTunes purchases they make via the mobile operator. "It would be naive to imagine that Apple wouldn't leverage iTunes with iPhone," said Emma Mohr-McClune, senior analyst for wireless services in Europe at Current Analysis Inc. Mobile handset vendors, such as Nokia Corp. and Motorola Inc., will beÂ keeping a close eye on Apple's strategy of linking content with handsets, she said. The posting on the Apple Web site informs potential customers that if they don't already have an iTunes Store account, they should set one up "to save time later." An Apple spokeswoman in Europe declined to comment further. The iPhone is due to go on sale in the U.S. on June 29. The company has announced plans for a European release in the fourth quarter of the year but has yet to provide details, such as whether the European version will operate on 3G (third-generation) networks. Â
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Apple Computer Inc. AAPL.O on  Friday said customers of its iTunes online music store can now  use eBay Inc.'s EBAY.O online payment service PayPal to buy  songs and audiobooks, becoming the second major online music  store to do so.
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(InfoWorld) - Hackers may successfully unlock an iPhone in as soon as three to seven days, according to a representative of one effort that aims to unlockÂ Apple's new handset. "We believe it will be easy. We are privately aware many of the iPhone engineers came from other handset manufacturers, and we understand their design techniques fairly well," said gj, speaking in an interview conducted using IRC (Internet Relay Chat). He requested that his real name not be used. "Easy to us means inside one week," he said, offering an estimate of three to seven days. Unlocking the iPhone means users will be able to use the handset with other service providers, not just AT&T, which has an exclusive deal to sell the phone in the U.S. By Tuesday night, U.S. time, hackers succeeded in cracking the iPhone's activation process, a minor step towards unlocking the iPhone but a significant technical challenge. The activation process uses a software token that is sent from the phone via iTunes to Apple, which signs the token and returns it to the phone. When that process is completed, iTunes tells the phone to activate. Hackers developed tools for both Windows and MacOS that allow users to activate their phones without iTunes. But users will have to use a token from an activated iPhone, which can be used to activate multiple phones. The hackers are not providing a token with the tools. "If you don't have a known token (which does contain identifying information) you won't be able to use the tool," gj said. At least one other hacker found a way to activate the iPhone without using iTunes. Jon Lech Johansen -- better known as DVD Jon, a hacker who helped develop the DeCSS tool for decrypting DVDs -- released a tool that can activate the iPhone without iTunes on his blog. "The iPhone does not have phone capability, but the iPod and Wi-Fi work," Johansen wrote. Cracking the activation process brings hackers one step closer to their goal of unlocking the iPhone. The phone requires iTunes to activate functions such as its camera and music player. But the process also requires signing up for a two-year data plan with AT&T. "Activating the phone really just makes the device more 'usable' for those who want to use it as a Wi-Fi device, for instance," gj said. With the activation process cracked hackers turned their focus to unlocking the iPhone, a challenge that is expected to be easier than cracking the activation process. "Unlocking is a function of the radio and the radio's interaction with the SIM (Subscriber Identity Module) logic, and these are mostly standards based," gj said. A rumored software update for the iPhone, expected to be released on July 5, could undo some of the progress hackers made towards unlocking the phone. "If Apple releases an update on July 5th that includes 'fixes' for our efforts so far, it will be a setback," gj said. "I don't know if it will be a permanent one." Hackers working together to unlock the iPhone don't belong to a specific group, and don't plan to claim credit for their work, gj said. "We just want to see the hardware freed. We accept that others will exploit those works but hopefully it will be a lesson to Apple," he said. "They're such a great company, it's a real shame for them to lock everything down like this. The design is top notch," he said. "They would win far more business by setting an example for the industry."
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(InfoWorld) - Now that Apple's iPhone is finally on sale, the race is on to see who can unlock it. Locked phones can only be used with cellular service from one carrier, a move designed to guarantee carriers recover the cost of subsidizing a handset through monthly service charges. But the cost of the iPhone, which is priced at either US$499 or $599 depending on the model, is not subsidized by AT&T. Users must pay full price for the handset and sign a two-year contract, which requires them to pay from $59.99 to $99.99 per month for cellular service. Unlocking the iPhone will enable the handset to be used with any cellular provider with a GSM (Global System for Mobile Communication) or EDGE (Enhanced Data Rates for GSM Evolution) network, not just AT&T's network. That's an attractive proposition for users who already have a cellular contract with another carrier, or users outside the U.S. who can't wait to get their hands on Apple's new handset. Efforts to unlock the iPhone are being tracked on several Web sites, including Hackint0sh and the iPhone Dev Wiki. Initial signs look promising, although the iPhone remained locked at the time of writing. Like other GSM phones, the iPhone uses a SIM (Subscriber Identity Module) card, a removable smart card that contains a user's phone number as well as limited storage space for contacts and messages. SIM cards are designed to be swapped between phones, allowing users to change handsets while using their cellular service. They can also be switched when users travel, allowing them to avoid international roaming charges with the purchase of a prepaid, local SIM card. A removable SIM card is a good sign for hackers, because it indicates the phone is locked using firmware, which can likely be cracked. Of course, unlocking the iPhone requires more than simply changing the SIM card. Swapping the AT&T SIM card used with the iPhone for a SIM card from another carrier results in an error message that reads, "Incorrect SIM. This iPhone must be used with an approved SIM." To unlock the iPhone, hackers must first circumvent the handset's activation process. New iPhone users are required to activate their handset using the latest version of iTunes, released on Friday, before they can use the phone. Without activation, which requires users to sign up for an AT&T service plan, none of the iPhone's functions, including the camera and music player, can be accessed. If hackers can circumvent the activation process, the next challenge will be to unlock the SIM card itself. That could happen as soon as Monday. By Sunday night, U.S. time, hackers had made progress towards circumventing the iPhone activation process, gaining access to key system files and finding two passwords used with the phone, according to the iPhone Dev Wiki. "I think by the end of tomorrow we'll have an activation crack," one user wrote on the site.
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When it releases the iPhone software development kit later this month, Apple will likely use iTunes as the means of distributing third-party software. That has programmers excited, because of iTunes' massive audience -- but also nervous about the amount of control Apple will have.
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Online payment system Paypal can now be used for purchases by US customers of Apple&#39;s iTunes music store. Until now, iTunes accepted credit cards, gift certificates and account balances as forms of payment.
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InfoWorld - Consumers planning to buy&#160;the iPhone when it goes on sale in the U.S. later this month will need to have an iTunes Store account before they can activate the device, according to information on Apple Inc.&#39;s Web site.
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Apple Inc  will offer a  $100 store credit to people who bought the iPhone before the  company slashed the price by $200, Chief Executive Steve Jobs  said in a statement on Thursday.
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Apple is facing questions over user data placed in DRM-free tracks sold through iTunes.
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Q How can two people share a computer and get their own music when they sync an iPod to the same copy of iTunes?
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Users of HD Radio devices will soon be able to 'tag' songs they hear for later purchase using iTunes.
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Apple Inc.'s recent rollout of songs without copy protection software at its iTunes Store has given consumers new flexibility, but questions have emerged over the company's inclusion of personal data in purchased music tracks.
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Apple released an update for iTunes on Friday in preparation for the iPhone. Version 7.3 allows the user to activate their iPhone service through the application.
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(InfoWorld) - Apple'sÂ iPhone launchÂ has been marred by delays in AT&T's phone activation system, leaving some people unable to use their new toy throughout the weekend. People who buy the iPhone, which went on sale in the U.S. Friday evening, are required to activate it through Apple's iTunes software on their home computer. They choose a rate plan, authorize their credit card number, and the phone should be activated soon after. Apple has said the process should take only a few minutes for people being assigned a new phone number, and "up to six hours" for people transferring a number from another operator. But for some the wait has been much longer, according to postings on Apple's iPhone message board and elsewhere. "It has now been 48 hours and my iPhone is still the prettiest paperweight I own," wrote one frustrated user. "Nightmare indeed," said another. "I've been waiting 11+ hours now. I got the phone after a somewhat reasonable one-hour wait at the Albany, NY store, then spent 4+ hours talking to AT&T and Apple trying to get the thing activated." Others said their phone was activated in a matter of minutes. AT&T was not available to comment in Europe on Monday morning, and Apple did not immediately respond to a request for comment. An AT&T spokesman told the Wall Street Journal newspaper that most activations were occurring in a few minutes, and that the operator was working to fix the remaining issues. An unnamed source told the paper that about 2 percent of users were being affected. The delays cast a shadow over what appears -- so far -- to have been an otherwise successful launch of the iPhone. The device sells for $500 or $600 depending on the amount of memory on board, plus an activation fee and the cost of the service plan from AT&T, which for now has exclusive distribution rights for the iPhone in the U.S. When people buy a new cell phone the device is usually activated in the shop where they buy it. Apple and AT&T had billed the self-activation process as "another example of how AT&T and Apple have partnered to bring innovative new features to our customers." Opinions were divided as to where to lay blame. An iPhone buyer who claimed to work for AT&T said in a message posting that delays were inevitable and not the fault of either company. Thousands were trying to activate their new phone simultaneously over the weekend, the person noted, and the activation requests were lining up at AT&T's network switches "like 30,000 or so people throwing basketballs at one hoop and hoping to make it in." Others said AT&T should have lined up additional capacity for the activations. Some said they expected the problems to be ironed out by next week and the incident to be forgotten. "Activation is going to happen eventually. Why did you invest so much of your time and energy in this?" one person wrote on Apple's board. "Life is too short to worry about this type of thing." There were some other gripes about the iPhone, although it was hard to tell how widespread issues are. Several users complained that the phone's iPod function stopped playing music when they used it as the same time as the Safari Web browser or Google Maps. Others complained of a bug that caused the e-mails they sent via GMail to appear in their inbox. Other users, including a person who responded to a posting on the iPhoneFAQ.org Web, said they were unable to transfer an AT&T business account to their iPhone, and were told they would have to start a new, individual account.
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SAN FRANCISCO/NEW YORK  - Hundreds of gadget fans,  or their paid stand-ins, lined up on Friday to be the first  buyers of Apple Inc.'s  iPhone, a music and video  playing phone expected to reshape the mobile industry.
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Apple has activated previously-announced plans to close its Music Store to users of earlier versions of iTunes. The company revealed its intent last month, when iTunes users accessing the
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Apple Inc will offer a $100 store  credit to people who bought the iPhone before the company  slashed the price by $200, Chief Executive Steve Jobs said in a  statement on Thursday.