New iPhone 3G Activation Process Could End Unlocking

Unlike the first generation iPhone, the iPhone 3G will require activation at either an Apple retail store or an AT&T Store.

The iPhone 3G will not be sold at Apple's online store, thus ending the practice of purchasing iPhones and unlocking them prior to activation. Unlockers has purchased the first generation iPhone in droves and were able to sell unlocked iPhones at a premium. If you had T-Mobile and wanted an iPhone, the only option was an unlocked iPhone. With the iPhone 3G, Apple will usher in an entirely new albeit traditional activation process. While it's still possible that hackers will be able to unlock the iPhone 3G, there is hardly an incentive for people to resell the phones. The current price to break an AT&T contract is a whopping $175. Then again, with the low price point of the new iPhone 3G, there might just be a market for a $450 unlocked model. Still, this model will most likely curtail those purchasing iPhones in bulk for this purpose.

This new activation process could benefit those with first generation iPhones who are looking to upgrade. Prior to today, some have found their auctions for pre-owned first generation iPhones hit close to $400. This demand could continue if Apple's new policy curtails unlocking their latest iPhone.

Discuss the release in our new iPhone 3G forums.