The iPhone supply chain loophole

It was recently widely reported that Apple is limiting iPhone sales to only 2 per customer, for fear of “illegal trafficking” and to “preserve stock” for the Christmas crush – reports I read with slight amusement.

Is it just me, or are Apple’s efforts to keep its supply chain hack-free a noble yet not exactly useful act? Because I personally know of a few friends on our sunny island who are already using the iPhone, which they bought from a famous IT building somewhere in the Little India region.

According to one such consumer (who has asked for anonymity), the AT&T function has been disabled and a new software has been put in place so that it works with local telco operators.

In the midst of the software upgrade, users in Singapore will also apparently only be allowed to use iTunes 7 and no other updates.

While consumers admit the phone is still rather “buggy”, waiting for a second generation, or worse, waiting for the iPhone to be launched officially in Asia next year is hardly an option.

“Consumers (in Singapore) change their mobile phones almost every year or year and a half,” said another iPhone user. “By the time the iPhone launches here, the hype is over and we’re on to the next new gadget.”

At first glance, it seems the Singaporean consumers’ “kiasuism” (first to everything) will affect sales of the iPhone here once it is officially launched in Asia next year. But I was proven wrong.

A quick telephone call to a good friend (and MacHead, we call him behind his back) later, I learned there are other consumers out there who would skip the unlocked phones and wait for the iPhone to be officially launched in Singapore before getting one.

According to him, this had nothing to do with staying true to the brand, neither has it to do with the iPhone’s superior functions (which are arguably lacking when compared to other smartphones). Rather, he advises consumers not to buy unlocked products, which will make them incompatible to official software upgrades. In addition, Microsoft functions may not be added or may not work as well with the unlocked phones, and they are most likely not covered by warranty.

So will consumers still take a bite out of the Apple iPhone when it comes here? Or will Apple lose out to resellers who’ve already claimed a piece of the iPhone pie with their unlocked versions? I suppose we’ll find out.